Category: Construction

Introduction

The construction industry is a mirror of society, which includes different sectors within itself. By analyzing the sectors one can see which of them is the most popular and, therefore, is the most perspective. The construction industry in the UK is having a period of strong growth. Four sectors can be determined in this industry: house building, infrastructure, industrial construction, commercial construction.

House building

In 2000 house building accounted for 38.6% of the whole construction industry’s output. Out of this number, the amount spent on public housing usually has never exceeded £2bn but at the same time, the figure for private housing has been double or even triple of that amount. House building output is forecast to be increased by 19% between 2001 and 2004.

Infrastructure accounted only for 9.2% of all construction work which was made in 2000 – this figure is slightly lower than for the previous 4 years. The main source of infrastructure work is road building, in particular, The National Audit Office revealed that 51% of road-construction contracts (which worth more than £434m) – were won by five firms: Balfour Beatty, Budge, Alfred McAlpine, Fairclough, and Tarmac.

If one looks at industrial construction, it can be noticed that it is one of the smallest sectors in the construction industry. The output of private construction work was only £3.7bn, or only 5.3% of the total construction sector in 2000 (Pheng, Low, Kwang, 2005)…

At the same time, commercial construction output with a wide variety of commercial work accounted for about 18% of all of the construction works in 2000. (Pheng, Low, Kwang, 2005). So, it can be concluded that the UK’s construction industry is having a period of strong growth. Regardless of the rapid growth of other sectors, the housebuilding sector makes up a huge part of the whole construction industry in the country. It means that cultural, political, and economic factors in the UK allow the construction industry to grow, consequently, the country has a great potential for capital investments in this industry.

Managing a small business – resources, finance, and technologies.

As a type of the popular models used in practice to form a small business, I chose Limited Liability Company (LLC). This company does not only design but also conduct the construction process according to the design, which was made.

A limited liability company is a type of business ownership that combines several features from both corporation and partnership structures. At the same time, LLC is not a corporation or a partnership business. The number of members is unlimited and can include other individuals or corporations, or even other LLCs (Bosch, Philips, 2002).

Advantages in choosing the model of Limited Liability Companies

There are many advantages in choosing the model of Limited Liability Companies. The first undeniable advantage of LLC is that the owners of this model have the protection of its corporation. An LLC exists as a separate entity much like a corporation, where members are not personally responsible for their debts unless they have signed their guarantee. Another advantage of this model is the Flexible Profit Distribution. It means that limited liability companies can select different forms of distribution of profits, for example: if in a common partnership profits have to be split 50-50 (Bosch, Philips, 2002)., LLC has much more flexibility in dividing the profits. The LLC business structure doesn’t require any resolutions, and that is why LLC is easier to operate. All your business profits, losses, and expenses go through the company to each member. So such an organization of processes aims to avoid double taxation or pay both corporate and individual tax.

There are also some disadvantages of the chosen model. It is important to realize that the life cycle of an LLC is rather limited. The death of bankruptcy of an LLC member can lead to negative consequences on the overall performance of this company. One more disadvantage of this model is the great amount of paperwork, which is required to run a successful LLC.

The typical fee can be established in some ways. These ways depend on the type of project and on the extent and nature of services that are required from an Architect. Common methods of compensation to the Architect would include: hourly rates, a stipulated sum per unit of what is to be built (i.e., the number of rooms or square feet), a sum based on the Architect’s compensation proposal, a percentage of construction costs, or a combination of all of these methods.

Moreover, one has to keep in mind some factors that might affect the fees, including the level of quality and detail, the scope of the project, and economic conditions. Analyzing the described situation, when the company does not only design but also conducts a construction project, – the fee submission to a client would include: Construction Cost, Architect’s Fee, Landscaping, and Driveway if necessary (Bosch, Philips, 2002).

International Accounting Standards

To manage the flow of money in and out of the business one needs to remember about the International Accounting Standards (IAS). According to these standards, the accounting department has to keep a lot of different records and documents. Some of them include the following documents: balance sheet – is a statement of the book value of all of the assets and liabilities (including equity) of a business; Income Statement – is a financial statement for companies which indicates how money received from the sale of services and products before expenses are taken out; Cash Flow Statement – is a financial statement which shows incoming and outgoing money during some period (usually monthly or quarterly); notes to the Financial Statements and other documents. These reports will help to manage the flow of money especially if all of these records are carefully kept and regularly updated.

Process of hiring employees

To hire some employees in the Company one has to keep in mind few factors. Employee Policy has to be prepared (Bosch, Philips, 2002). The purpose of company policy for employees is to provide all necessary instruction for employees on their performance and behavior at their workplace. The Employee Policy has to be presented during the hiring session. This document would normally include the notice on his or her duties, salary, promotion or demotion, relocation and all items regarding his or her work; notice of inappropriate acts; notice of proper handling of confidential information; notice of ownership of work product (the Policy should include a statement to an employee that all of his work product and all of his intellectual property rights of this work, is owned only by the company and not to be used by them outside of their work or even by their future employers). Some policies may include an agreement by employees not to work for competitors of the company. All employees have to be legally registered and are required to pay the necessary taxes.

There are many different ways which would help in supporting a commercial activity of the Company. Modern Information Technologies (IT) allows us to use computer systems that would ease the job of an Architect or even the whole Company. The internet technologies can be used in various ways: to help the Company in advertising its services and products; they can help communication and negotiation with clients to be quick and smooth; also they can advance communication between the employees within the Company (Bosch, Philips, 2002).

Software programs

Furthermore, there are a lot of different software programs which can be very helpful in running the business, for example, Information Management System (IMS). Information management systems are divided into four levels: operational level, knowledge level, management level, and strategic level (Thierauf, 1999). The most suitable system for LLC is the Operational system that aids the managers by tracking elementary activities and sales transactions of the company. The primary objective of this kind of information system is to keep the flow of transactions through the company. In Transaction – Processing Systems (TPS, the five basic needs of the company are normally covered: finance (cash management), accounting (payroll, accounts payable, accounts receivable), sales and marketing (order tracking and order processing), activity (machine control, time scheduling, material movement), and human resources (payroll, training and development, employee record keeping). TPS is the basic business system that aids in the daily routine operations of any LLC (Thierauf, 1999).

Legal, Statutory, Contractual, and Procedural Aspects of Building Practice

The letter given to the contractor should include all related to construction procedure items and describe the contractor’s obligations and fees according to the obligations.

The first and one of the main subjects in the construction business is defining and approval of the parties (builder, consultants, and others) involved in the activity (Cohen, 2002).

The approval is carried out through the tender process. The customer should be acquainted with tender process regulations and basic principles of tender proposal formation. Also, there are several statements the Customer should be aware of the fact that for private contractors (including LLC stated earlier), the threat of bankruptcy, or actual bankruptcy, will lead to (often very sudden) termination of the contract. The Customer should follow an evaluation procedure that will provide all the necessary information about the tenderer. Traditionally, the detailed evaluation procedure has fallen into two distinct parts:

• technical: assessing the tenderer’s proposals for delivering the service;
• financial: an accurate assessment of the commercial viability of the bid.

Technical evaluation

Each tenderer needs to be examined in the following categories:

• staffing: numbers, caliber, experience;
• management structure;
• operational procedures;
• marketing plans;
• understanding of the work;
• innovation and flair.

It is then necessary to score each tender in each category. A simple way would be to give marks out of 10 to each category. Thus one tenderer may score 6 out 10 for staff, while another may score 8. A method of scoring encourages greater objectivity in the evaluation (Cohen, 2002)… Subjective judgment has to be avoided.

Financial evaluation

The tender offers must be examined for:

• arithmetical accuracy;
• an analysis of the costs included;
• acceptability of the profit margin;
• the sufficiency of the contingency sum;
• the credibility of the income forecast.

Quality specifications

The balancing point is usually divided between finance and quality at 35% to finance, 65% to quality. The headings pointed below are by the service and quality specifications:

• staff proposals;
• program;
• health and safety;
• marketing;
• technical competence;
• management.

However, a contractor’s submission could not afford to ignore non-financial considerations. The Customer may expect two possible problems:

• a contractor would cut costs below those required to run the service properly;
• an attractive bid could be submitted by including an unrealistic level of income.

Validity

Once the evaluation model had been created it should be agreed with an internal audit and submitted to District Audit (the authority’s external auditors). The most complete documents should include (Sebestyén, 1998):

• financial data and working papers;
• management and bid philosophy;
• management objectives;
• detail set out as per assessment criteria;
• procedural documents;
• health and safety procedures;
• marketing plans;
• programming proposals;
• references.

Technical Approvals that may be necessary to legally complete the project and are usually devoted to the principles which provide health and safety of people in and around buildings and energy conversation (Halsey, 1999).

The regulations apply to buildings, whether domestic, commercial, or industrial. Many construction projects also require planning permission which is dealt with as a separate kind of work.

Typical documentation needed according to building regulations

All the documentation on a building’s construction, including its structure, fire safety, sound insulation, drainage, ventilation, energy conversation, electrical safety, and energy efficiency in buildings. The needs of all people, including those with disabilities, in accessing and moving around buildings. All the regulations set standards for buildings to be accessible and hazard-free wherever possible (Halsey, 1999). Taking into consideration all the points precautions listed previously the Customer can draw up a contract that meets all the requirements of the parties involved (Halsey, 1999).

Self-management and appraisal of working practices

For architects, self-management is an essential part of their job. Self-management refers to skills, methods, and strategies by which an individual can effectively direct his activities toward the achievement of objectives, including goal setting, scheduling, planning, etc. The concept of self-management is based on social theory.

Conducting architectural projects, an architect will be required to manage his/her time wisely, on the other hand, the manager of the architectural department may face the problem of successful management. To avoid these potential problems, architects should use the essential components of management.

The successful process of management consists of six integral components of managing the individual time of architect(1) The system of assessment – it includes systematic data which is gathered to assess the effectiveness of an architect, in particular, whether he/she is meeting the deadlines or whether his/her designs are meeting the requirements of the client. (2) Goal setting helps to plan and set specific goals, and coordination the work of the team, which consists of architects with different styles and educational backgrounds (3) Process of monitoring is the process by which a manager controls the quality and effectiveness of architects’ projects. (4) Evaluation of an architect’s results is a powerful method for enhancing the effectiveness of management techniques. (5) Written contract signed with architects by the employers of architectural company, which is an agreement that specifies plans, expectations of the employer, and architect’s responsibilities and rights. (6) And the last, but not the least component is maintenance, which is a critical test of the usefulness of management training. Self-management helps to avoid different problems. One of them is paying extra money for the delay of the project. If an architect does everything on time (according to the contract) then the contractor doesn’t have any rights to claim extra money (Sayers, 1997).

Communications and presentation

The process of preparation for the interview, the interview itself, and decisions made after it are important components of choosing a future career. To be employed at a “dream job”, it is essential to obtain the degree of one’s future field together with good knowledge and understanding of the future profession. A prospectus is a tool that helps to “advertise and sell yourself” to potential employers, so the description of one’s completed courses and personal achievements should be reflected in the prospectus (Sayers, 1997).

The interview is a chance for the employer to meet potential candidates in person, so the employee should prove that he/she can meet the company’s needs successfully, and the company would benefit by recruiting this particular person. The importance of post-interview steps is often neglected, however, a successful employee should keep a record of all the companies he/she has applied at, analyze his/her mistakes made during the interview to avoid them later, and continue deepening knowledge of the studied field. Here is an example of the prospectus, which can help me join the team of architects of the certain company.

Prospectus

A successful candidate, your name, for the position of the architect in the architectural department of the employer’s company will planning, organizational, and designing processes of this company.

Your name, who graduated from Z. Private School in 2004, has already obtained a significant amount of skills and deep knowledge of her subject being in her 3d year in BA Hons Architecture (RIBA Part I).

A rich variety of courses and rather high grades received upon their completion is the best proof of professionalism of your name, in particular:

• Year 1: Introduction to Architectural Design (double): B+, Architectural Representation: A, Introduction to Architectural Psychology: B, Architectural Design in Context (double): B+, Introduction to Architectural History and Theory: B+, Introductory Technology: B.
• Year 2: Technology and Sustainability B+, Interdisciplinary/Practice: B+, Architectural Design 1: Integrating Landscape (double): B+, Architectural Design 2: Integrating Technology (double): B+, Digital Culture: B+, Issues in Architectural History and Theory: B+, Psychology of Light and Colour: B+.
• Year 3: Architectural Design, Advanced Technology, Architectural Design 4), Preparation for Practice.

The theme of the Final Year Dissertation is “The Architecture of Fashion: The Intersection of Architecture Lane and Fashion Avenue”, so this candidate possesses creative skills in architectural design.

Your name‘s computer skills are on a high level since this candidate has a good knowledge of the following programs: Word, PowerPoint, Excel; Adobe: Photoshop, Illustrator; Basic knowledge of 2D AutoCAD and Microstation. The candidate has practical experience in applying her computer skills to the subject of her study. One more undeniable advantage of your name is your fluency in the Greek language and a quite high level of English and German languages.

This candidate has a rich background of involvement in the area of arts and design, in particular: studying photography for 4 years, together with the practical application of this course, also creating freehand and technical drawing, with a special interest in illustration, engraving, creating graphics with adobe programs and sketching.

The interest and hobbies of the candidate are mostly connected with her subject of study – architecture. Madeleine Vionnet, a fashion designer of the 1920s-1930s, inspires your name with her sculptural and unique design. Your name believes that such classic works of architects like Paul Rudolph, and more recent works of Zaha Hadid, Fernando Romero, Frank Gehry, Shuhei Endo, Toyo Ito, and Sugeru Ban helped the candidate to determine her architectural style and enhance her understanding of both classical and modern architecture.

The architectural style of a candidate is mainly minimal in forms but with the usage of angles, continuing surfaces to give the viewers the feeling of unified circulation throughout the spaces. Rich experience of traveling and learning new cultures helps candidates in creating unique and innovational architectural designs.

Conclusion

To summarize, a great variety of obtained skills and a deep understanding of study should convince the employer that recruitment of this candidate in the team of its architects will help this company benefit and advance its further development.

References

Bosch, Gerhard and Peter Philips, eds. 2002. Building Chaos: An International Comparison of Deregulation in the Construction Industry. London: Routledge. Book on-line. 2007. Web.

Cohen, John M. 2002. Measuring Safety Performance in Construction: Can Business Growth and Improved Safety Performance Go Hand in Hand? They Can When a Company Makes Accountability a Key Ingredient. Occupational Hazards, 41+.

Halsey, Gordon J. 1999. Planning for Safer Construction Projects. Occupational Hazards, 43+.

Pheng, Low Sui, and Goh Kim Kwang. 2005. ISO 9001, ISO 14001 and OHSAS 18001 Management Systems: Integration, Costs and Benefits for Construction Companies. Architectural Science Review 48, no. 2: 145+.

Pheng, Low Sui, and Jasmine Ann Teo. 2003. Implementing Total Quality Management in Construction through ISO 9001: 2000. Architectural Science Review 46, no. 2: 159+.

Sayers, Philip. 1997. Competitive Tendering: Management and Reality : Achieving Value for Money. London: E & FN Spon.

Sebestyén, Gyula. 1998. Construction: Craft to Industry. London: E and FN Spon. 2007. Web.

Thierauf, Robert J. 1999. Knowledge Management Systems for Business /. Westport, CT: Quorum Books.

Modeling global risk factors affecting construction cost performance

General Review

This research paper is simply because it is written in plain English, and the complex terminologies are clearly explained.

Conceptualization and theoretical basis of the work

The paper entails a discussion on how to manage, assess, and represent the universal risk factors affecting cost performance in the construction industry. The study forms part of another research study aimed at developing an effective framework to enable key players in the construction industry to handle the risk factors affecting cost performance at the stage of project performance. The major concepts in the paper are clearly explained and defined through extensive literature review. Besides, all the concepts are well referenced. The paper indicates that many construction projects are characterized by extreme time and cost overruns, which ruins their reputation (Baloi &Price, 2003, p. 261). Besides, the major factors influencing costs are explored at length.

Through a broad literature review of specific relevant materials and conduction of discussions with contractors, the paper provides a clear framework for the management of risk factors affecting the performance cost in the construction industry. The paper further reviews some relevant theories in management science in addition to explaining their appropriateness to the research study. The article reviewed can be found in the project management and management science section in the school library (Baloi & Price 2003, p. 263).

Analytical Framework

There is no clearly stated research question. However, the author has provided an elaborate explanation of the research objectives and concepts. The introductory part of the paper provides an in-depth explanation of the major issues addressed in the paper in addition to defining the concepts dealt with in the paper. Besides, the objectives of the study are clearly outlined (Baloi & Price, 2003, p.260).

The article does not have any hypotheses, and the research entails the development of a resource base to contribute ideas to another study. The study is a review of studies on risk management, analysis, and modeling in line with the theories and techniques of management sciences. The theory is well developed properly in this study in that it explores the most critical risk factors affecting cost performance in addition to eliciting the most relevant sources which are related to the chosen risk factors. In this way, the study provides the most effective approach to sanctify, assess, and evaluate the appropriateness of the developed framework.

The study shows a strong correlation and significance in the development of a successful framework for managing, assessing, and modeling the risk factors which affect cost performance in the construction industry. The paper evaluates the appropriateness of several theories in the management of risks and uncertainties in construction in addition to the process of modeling the chosen risk factors using the new framework (Baloi &Price, 2003, p. 267).

Research Design

This study aims at formulating a research question that best suits the issue being addressed by the topic. In this case, the authors aim at bringing forth ideas and facts around the issues being addressed by the research topic. Initially, the study focuses on defining the study problem from a wider perspective, which is then followed by the introduction of precise and specific theories and concepts that define the problem. This method is appropriate for the issues that the research topic seeks to address. Also, the sensitivity of the method is in line with the aims and objectives of the topic. In this case, the paper employs the literature review method through consideration of the appropriateness of the secondary data and preliminary discussions. However, the research method could have been improved through the introduction of a research hypothesis and statistical data to allow assessment of statistical significance.

The selected literature sources are analyzed. However, the criterion employed in selecting them has not been stated. After evaluation of the whole article, there is no indication of the study isolating the measured variable through other effects. The variables have also not been operationalized. Also, the study does not include a discussion relating to the reliability and validity of the variables measured. The number of sources employed in this review is appropriate for the research question. However, it is not clear whether the results of the research can be generalized because the study does not have any empirical data.

Results and Discussions

Because the data used in this study is derived from previous studies on the same or related topics, it proves to be appropriate but not adequate for the research topic. Besides, neither statistical data nor the methods of data collection and analysis have been provided in this study. A description of the statistical techniques used in the study has not been provided and thus it is impossible to tell whether statistical analyses were conducted. Hence, analysis of the secondary data is not referenced by the accepted procedures of data analysis.

The study does not include a description of the research methodology employed and, therefore, it falls short of the data appropriate for the analysis of control variables. Control variables are also not clearly defined in this case, which makes the process of data analysis inappropriate. However, several factors, such as linguistic variables and membership functions are considered in risk assessment and management. There is no systematic analysis of data in this study and thus, it is not possible to tell whether the concepts, themes, and categories follow from the sources used.

Conclusions

The conclusions follow systematically from the facts discussed in the body of the article. The conclusions offer a summary of all the main points represented in the main discussion. Besides, there are no alternative conclusions provided in this article. This should be accounted for. The conclusions do not include an adequate discussion on the theoretical and practical implications of the data considered. Also, there is no clear connection linking the conclusions with the theoretical implications of the data analyzed.

On the other hand, the limitations of the study are not included in the conclusions and thus it is impossible to account for the applicability of the research findings and the parameters of the research. Furthermore, the study does not provide a clear discussion of the evidence for and against the arguments of the researchers. However, the conclusions include a clear distinction between the data considered and their possible interpretations relative to the research topic. Overall, the research provides a stable foundation and a possible framework for additional studies on the same topic. However, the framework provided in this study is suitable for the research topic and the issue considered if implemented carefully.

Risk management: Risk lifecycle and risk relationships on construction projects

General Review

This research paper is simply because it is written in plain English, and the complex terminologies are clearly explained.

Conceptualization and theoretical basis of the work

The paper entails a discussion on a new method of financial risk assessment in the construction industry. The new method considered in this case comprises two elements, which include the risk lifecycle and the risk relationships. These elements are differentiated under different project risk factors. In this paper, the risk lifecycle entails the possible events which occur during concealment or action. On the other hand, the discussions on the risk relationships involve the interactions and the possible effects of risks on each other (Ren, 1994, p. 68).

The two major concepts included in this paper include risk lifecycle and risk relationships. The concepts are adequately defined and elaborated thus, providing a generalized overview of the research problem. The practical relevance of the paper is based on the additional approaches it provides to the process of risk management. It entails a literature review leading to a theoretical framework that is then applied in a case study to test its effectiveness in addressing certain issues in risk evaluation.

The literature review section develops a clear connection with other studies conducted earlier on the same or related topics. This section highlights the basic events which lead to the development of risks and the relationships between risks including the patterns followed by these relationships. The theoretical basis of this article lies in the field of project management and management science (Ren, 1994, p. 70).

Analytical framework

The research question is not clearly stated, although, through the introductory section, sufficient literature is provided concerning the research problem. The paper entails a discussion of the available theory, which leads to the development of a framework that is tested in a case study. There are no hypotheses developed for the study and, thus, the study involves both a literature review and a case study analysis. In this way, the theory developed in the paper is adequate to address the research problems. The paper aims at assessing the applicability of the two elements, risk lifecycle and risk relationships in risk management techniques to accurately predict the probability of certain projects incurring financial losses (Ren, 1994, p. 68).

The research entails two main variables whose significance and connection to each other, and the research problem is clearly explained through elaborate literature review and acknowledgment. The study explores a variety of events that comprise what is regarded as the risk lifecycle such as the start time and duration of the risk and the cash-flow of the risk losses. On the other hand, the relationship between these risks is also explained including the basic patterns of the risk relationships such as independence, series, dependence, and parallel.

Research Design

As indicated earlier, the study entails both the development of a theoretical framework and testing its practical applicability by considering a case of a commercial construction development project in England. It is an appropriate method of addressing the research problems because there is no developed research question. For this study, the research design entails both a literature review and a case study. The case study is designed in such a way that it covers discussions on the risks identified and their relationships. Besides, it covers definitions and estimations of various parameters measured, such as time and losses. The study also entails simulations and analyses of the data generated.

The research design could have been improved through the incorporation of a designed research methodology because the current study entails intensive literature review and estimation of some analytical parameters instead of measuring raw and analyzable data. The study accounts for the chosen parameters, but it does not include the criterion employed in choosing them. However, the research study successfully isolates what is being measured/ considered from other effects. Additionally, the two variables considered are clearly and reasonably operationalized. The validity and reliability of the measures have not been discussed because the simulations and analyses are based on assumptions. The secondary data considered in this case is appropriate for the research question. However, the sample size considered is not specified and, thus, it is not possible to generalize the results based on the sample.

Results and Discussions

The data considered in this study is secondary data, which is appropriate for the research topic because it entails the measurement of risk lifecycle and risk relationships. The two variables may not generate statistically analyzable data under normal circumstances. About the literature review, there is no indication of a systematic data collection procedure. However, in the case studied, the data collected is systematically generated by computer software and recorded. The statistical techniques considered for this case study are clearly described and appropriate. However, no reference is made to the accepted procedures of analysis.

There is no control variable considered in this case study and, thus, is impossible to tell of any control variables which were omitted. The analysis is systematically carried out since it entails computer simulations and analyses, which are more precise and accurate compared to conventional methods of analysis. However, the study does not include discussions on how concepts, themes, and categories are derived from the data considered.

Conclusions

The conclusions provided represent a summary of the main points considered in the main study. Moreover, the conclusions are consistent with the results of the case study in that it is indicated that using the new methodology, decision-makers can assess risks based on the risks identified, analyzed, and the time and common effects considered. On the other hand, there are no alternative conclusions that are provided and accounted for in this study. Besides, the theoretical and practical implications of the results are not adequately discussed in this study except that it is mentioned that the new methodology discussed is appropriate for sound decision making.

Furthermore, the limitations of the study have not been discussed in line with the parameters considered in the research and the applicability of the findings. Also, the conclusion does not offer discussions of the evidence for and against the researcher’s arguments. Finally, the conclusion fails to provide a clear distinction between the data considered and their interpretations. Overall, the literature used in reviewing the research is adequate. However, the statistical analyses are not adequate for the study. On the other hand, the paper provides an effective methodology for risk assessment and management.

Project risk management in the Queensland engineering construction industry: a survey

General Review

This research paper is difficult to review because it incorporates several studies and concepts into the current research.

Conceptualization and theoretical basis of the work

Risk management forms a crucial part of project management because many studies indicate that failure to manage and mitigate risks is the main cause of project failure. This paper entails a survey conducted on senior managers of the construction projects in Queensland to assess the application of risk management in their daily practice. Further, the results of the survey are compared with earlier studies conducted in the United States, Uher, Canada, Australia, and Israel, among other countries (Lyons & Skitmore, 2004, p. 51).

The paper provides a summary of the major concepts considered in the survey. The paper explores the importance of incorporating risk management into practice as opposed to other studies that fail miserably in terms of evaluating the practical applications of risk management. Furthermore, the paper has wider practical relevance in terms of presenting the techniques for assessing the level of risk tolerance among individuals or construction companies and the possible ways of recording risk data and its usage in future project management practices (Lyons & Skitmore, 2004, p. 52).

The process of detailing the aims and objectives of the research entails a review of four published papers on the same topic. However, there is no clear connection between the current study and the published materials. Moreover, the paper does not explain the relevance of previous studies in detail. This research paper is mainly concerned with aspects related to organizational behavior management, project management, and management science.

Analytical Framework

In this paper, the research question has been clearly explained in the introductory section by referring to a body of relevant data. However, there is no clearly stated research question. A discussion on the practical applicability of risk management is employed in developing the intended research question. The study does not include any hypotheses which need to be tested. However, it includes consideration of several variables, which are statistically measured to assess the level of agreement or disagreement between the findings of the current study and four other studies concerning the same topic.

Furthermore, the paper entails an analysis of the cohesion between the four investigations conducted earlier in addition to a consideration of the objectives and results of the four studies. In this way, the preliminary analysis contributes to the development of a multiple-choice questionnaire and theory development. It was then followed by a pilot study, which led to the development of a final questionnaire (Lyons & Skitmore, 2004, p. 52). The questionnaire was designed in such a way that it reflects the objectives of the previous studies to allow for comparison of the results of the four studies against the current research. Thus, there are clear indications that the contents of the questionnaire are significant to theoretical literature development.

Research Design

Considering the nature of the research question in this paper, the research methods used are appropriate. The research entails a quantitative comparative survey, thereby making the questionnaire methodology the most appropriate method for the study. The study aims at generating statistical data to be utilized in comparing a variety of variables concerning risk management between different surveys. This kind of study requires primary data, which is collected directly from participants using the multiple-choice questionnaire. Therefore, the sensitivity of the research method is sufficient to cater to the requirements of the current study. It is a quantitative kind of study, which involves numerical data related to a variety of variables.

The survey could be improved through the inclusion of hypotheses, which could allow for systematic analysis of the data generated. Additionally, this could narrow the scope of the research to considering specific variables related to the research question. The article includes a clear account of the criterion used in selecting the focus units of analysis. The chosen cases and variables are related to risk management in one way or the other. Analysis of the objectives and findings of previous studies provides the background of the study. The research isolates the measures considered from other effects, thereby clearly separating and reasonably operationalizing the variables. The variables considered in this research include risk management training, risk management usage, and risk management application. The reliability and validity of the measures used have also been adequately discussed. The population considered in this study is appropriate for the research question. Moreover, the population sample has been specified to be 200 construction organizations chosen randomly. However, it is not possible to generalize the results based on the sample.

Results and Discussions

It is possible to tell that the data considered in this research study is appropriate and enough. Additionally, data collection and record-keeping is done systematically and tabulated. The main statistical techniques employed in this research study are ANOVA and weighted average scores (WAS), which are appropriate and adequately described in the study. Also, reference is made to accepted procedures for analysis. On the other hand, there are no control variables, which are considered in this research study. Moreover, there are no additional variables, which are supposed to be considered that have not been included in the study.

The analysis conducted in this case is systematic, highly organized, and adequately described. Besides, there is an adequate discussion on the techniques employed in deriving themes, categories, and concepts from the data.

Conclusions

The conclusions provided in this research study are derived from the results as inferred from the data analyzed. The conclusions are also consistent with the results of the study, although it does not include any numerical analysis. However, the conclusions are consistent with the arguments developed in the main body. The alternative conclusions provided in this case are consistent with the results described and are adequately accounted for.

The conclusion does not provide adequate discussions on the theoretical and practical implications of the results. Furthermore, the limitations of the study in terms of the parameters of the study and applicability of the findings are not considered. However, there is an adequate discussion of the evidence for and against the researchers’ arguments. On the other hand, the conclusions do not include a clear distinction between the data and related interpretations. Overall, the article adequately handles the research question in terms of the arguments provided and the results generated. Careful implementation of the researcher’s findings can help in terms of reducing the level of risk tolerance in many construction organizations.

Understanding the key risks in construction projects in China

General Review

This research paper is very difficult to review because it covers a wide area of risk management, which comprises numerous potential risks to be considered under a single research article.

Conceptualization and theoretical basis of the work

Since most construction projects are characterized by complex procedures, long periods, and organizational/ technological convolutions, they are associated with numerous risk factors. This article aims at exploring the major risk factors in the construction industry in China to come up with strategies for mitigating them. In this case, priority is given to those risks showing the greatest influence on the time, safety, quality, and cost of construction projects relative to the combined standpoints of the industry stakeholders and the risk lifecycles.

The major concepts are clearly explained relative to the previous research studies concerning the same topic. Furthermore, the paper has a wide range of practical applications in that the research findings contribute to studies in risk mitigation in practice. Besides, the research findings can be a crucial resource base for service providers wishing to provide their risk management techniques in the Chinese construction industry (Zou et al., 2007, p. 601). Besides, the research is based on previously conducted studies to which a strong connection is created and acknowledged. Finally, the theoretical basis of this work is based on the field of management science, operation/production management, and project management.

Analytical Framework

The research does not include a clearly stated research question. However, adequate discussions lead to the development of the research problem addressed in the research study. There are no hypotheses in this research because it entails a comprehensive literature review coupled with a postal questionnaire data collection methodology and data analysis. The three methods lead to the identification of the major risk factors in the construction industry in China and the possible strategies to address them (Zou et al, 2007, p. 604).

The study entails a wide range of literature sources such as journals, books, and worldwide paper reviews, which contributes to a strong theoretical development process. Additionally, a pilot study was conducted before the main survey to test the validity of the content in the questionnaire. Although the research fails to include hypotheses in its statistical framework, the literature review conducted shows clear indications connecting it to theoretical development.

Research Design

The research methodology adopted in this research study is appropriate for the nature of the study question being addressed. Since the research question comprises both qualitative and quantitative factors, the sensitivity aspects of the methods match the requirements of the research question. Furthermore, the research study requires both primary and secondary data. Thus, the type of research design represented hereby is a mixture of qualitative, quantitative, and comparative research.

Since the research study reviews work that has been done in addition to collecting raw data from participants, the methodology could have been improved if hypotheses were included to allow for the development of a systematic analysis. Additionally, hypotheses could have narrowed the scope of the research to specific measurable parameters. The research comprises a clear account of the criterion employed in choosing the cases analyzed. The literature reviewed in this case is based on the major risks that affect the construction industry worldwide.

The research isolates the variables to be measured from the other effects. Through questionnaire analysis, the researchers have clearly and reasonably operationalized the variables considered in the study. The variables measured include cost-related risks, time-related risks, quality-related risks, and environmental and safety-related risks. Furthermore, the reliability and validity of the measures employed are discussed clearly. The population considered is appropriate for the research question. However, the population sample has not been specified and therefore it is not possible to generalize the results based on the sample.

Results and Discussions

The data generated in this research study is appropriate in terms of addressing the research question, but it is not sufficient. On the other hand, the process of data collection and record-keeping is done systematically. The study analyzes the data generated based on the probability of a risk occurring and the magnitude of the associated consequences. These statistical methods are appropriate for this kind of study. Besides, the statistical techniques are adequately described and referenced by the accepted procedures of analysis.

Besides, the control variables have not been clearly defined in the study. Based on the discussions provided, time, cost, quality, safety, and the environment can make good control variables. Despite the section involving a data analysis by considering several variables, there is no systematic approach in the whole process of analysis. However, the discussions section comprises clearly described accounts of how themes, concepts, and categories have been inferred from the research findings.

Conclusions

The conclusions provided by the researchers flow from the discussions and results of the main study. Also, the conclusions are consistent with the results of the data analyzed. However, there are no numerical data discussed in the conclusions. Additionally, the conclusions are consistent with the development of the arguments provided in the main paper.

There are no alternative conclusions that are provided in this article. Moreover, the conclusions fail to provide the theoretical and practical implications of the study. However, the researchers have included a list of recommendations on how certain risks should be addressed by key players in the construction industry. The limitations of the study in terms of research parameters and applicability of the results have not been provided in the conclusion. The conclusions do not provide adequate discussions of the evidence for and against the researchers’ arguments. Besides, it also fails to include clear distinctions between the data and their interpretations.

Overall Review

Research paper review-1 and 2 have proven to be relatively simple to analyze and criticize. However, papers 3 and 4 were relatively difficult to review due to the complexity of their content and wider scope. Overall, the paper review task has been beneficial and helpful in terms of highlighting the major characteristics and pitfalls in research materials. It has also important in terms of developing the skills needed to determine the quality, originality, and importance of research findings in any research material.

Reference list

Baloi, D & Price, A.F. 2003.Modeling global risk factors affecting construction cost Performance. International Journal of Project management. Vol. 21, pp. 261-269.

Lyons, T & Skitmore, M. 2004. Project risk management in the Queensland engineering construction industry: a survey. International Journal of management. Vol. 22, pp. 51-61.

Ren, H. 1994. Risk lifecycle and risk relationships on construction projects. International Journal of Management. Vol. 12, no. 2, pp. 68-74.

Zou, P.X., Zhang, G. & Wang, J. 2007. Understanding the key risks in construction projects in China, International Journal of management. Vol. 25, pp. 601-614.

The modern business world is characterized by a high degree of cross-cultural communication and collaboration. Multinationals operate in different countries, which is often associated with various challenges related to the economic, political, social, and cultural peculiarities of the host countries. The cultural aspect of doing business is often underestimated, which leads to negative outcomes such as financial and reputational losses (Garavan et al. 2017). The construction industry may be specifically vulnerable since it often involves considerable investment and the collaboration of diverse groups including but not confined to policymakers, local people, small companies, and international partners and institutions (Tijhuis and Fellows 2017). Effective communication is one of the prerequisites of the successful implementation of international projects. This paper includes a brief analysis of possible barriers to effective managerial communication during the construction of the complex in Poland and strategies to be employed to overcome these challenges.

Major Barriers to Be Encountered and Effective Cross-Cultural Communication

Power Distance

This report is based on Hofstede’s cultural framework that is regarded as a viable instrument to measure cultural peculiarities of different countries. Although this paradigm is sometimes criticized for overgeneralization, it is widely employed in business research and has proved to be effective (Clarke 2017). It is noteworthy that the United Kingdom and Poland are rather different in terms of almost all cultural dimensions according to Hofstede’s paradigm (Hofstede Insights n.d.). These differences should be considered so that appropriate communication patterns and channels could be developed. At this point, it is necessary to note that the differences between the countries are mainly associated with their past political agendas. Poland was under the rule of the Communist Party, which made it develop a non-Western perspective and managerial behaviors (Eisenberg et al. 2015). Nevertheless, during the past three decades, Polish people have adopted western attitudes in many aspects of their life, which is also obvious in the business sphere.

Power distance is the dimension that reflects people’s attitudes towards authority and power distribution. This dimension is regarded as one of the most influential in terms of communication within multinational organizations. Poland is characterized by a high score (68), which means that it is a hierarchal society where people value centralization and authority. At the same time, there is an apparent shift in the business environment as an increasing number of employees report that they would like to have a supportive leader (Eisenberg et al. 2015). However, more discipline and higher results are achieved in companies with autocratic managers, which unveils the need to have a closer look at each employee. Oswald et al. (2017) emphasize that this dimension has a substantial impact on working place safety in the construction industry as UK and Polish managers and employees have different attitudes towards responsibilities and authority. UK managers may find working in such a working atmosphere rather inappropriate because British people prefer using a democratic leadership style.

Training is one of the central strategies that are necessary for the facilitation of cross-cultural communication. Training programs should address all the dimensions so that employees could understand each other’s worldviews and motivations (Targowski 2016). The development of communication skills should be one of the major priorities, which will result in the successful implementation of the project. The use of advanced technologies is essential since it reduces training costs and makes it more accessible and effective. Social networks can be instrumental in bringing people together during training projects (Wankel 2016). Apart from gaining specific sets of data, employees should be able to develop cross-cultural social ties, which will facilitate communication and collaboration within the organization. The use of such technologies may need certain training as well, but this investment will have a positive influence on the venture.

Apart from staff training, it is also important to ensure the use of proper communication channels. As far as formal communication is concerned, the company’s information systems should be characterized by wide access to a knowledge base and a communication platform with well-established levels. Supervisors should be able to inform employees, and the latter need a user-friendly reporting channel. Linear communication platforms should also be available, and Polish employees may be encouraged to utilize them, especially when it comes to knowledge sharing and innovation. Wankel (2016) states that Millennials are the group that will benefit from the use of advanced technologies and social networks. The use of mobile-based platforms can also be considered as it will facilitate the communication process, which is quite important for the construction industry.

Individualism

Individualism is another cultural dimension that has a substantial impact on the development of organizations. Polish society is rather individualistic with a score of 60 (Hofstede Insights n.d.). To compare, the UK’s score is 89, which makes it one of the most individualist nations where individual achievements and inputs are highly valued. As mentioned above, the influence of the communistic past is seen as collectivist values that were inflicted on Polish people for decades (Eisenberg et al. 2015). One of the major implications for managers related to this cultural peculiarity of the Polish society is the need to develop relationships at two levels.

On the one hand, hierarchy and power distribution should be strict and well-defined. It is essential to offer formal communication channels with a top-to-bottom approach. The introduction of standards and protocols will also be favorably accepted. On the other hand, managers should try to establish personal relationships, which will make Polish employees (at different levels) properly motivated (Soja 2016). As mentioned above, the ambivalent perspective in Polish society requires a personalized approach to employees whose views may differ significantly. Apart from training, UK managers must praise individual input and make it visible through benefits and appraisal. One of the characteristic features of the relationships between the UK and Polish managers will be attention to every individual’s needs and the creation of an atmosphere where everyone is important although unequal (Hofstede Insights n.d.). Soja (2016) also claims that managers should be supportive and guide the most active employees, which will help in addressing Polish people’s ambivalent attitude towards power and individualism. These measures may require certain training as British managers may be unprepared for such tasks.

Masculinity

The two countries have almost identical scores in the masculinity dimension with 64 for Poland and 66 for the United Kingdom. The analysis of this dimension shows that Polish and British managers focus on competition and equity rather than the favorable atmosphere in the working place. However, the proper working environment is still quite relevant in both cultures. Reporting and performance assessment may be beneficial strategies that would contribute to effective cross-cultural communication. This dimension can become the basis for effective collaboration and communication as the objectives and behaviors of the two nations are quite similar. The use of social media can become the communication channel utilized to share knowledge and find the points of convergence (Wankel 2016). Managers can create video blogs sharing their views on performance, organizational goals, communication issues, and other challenges or opportunities. The development of social links during training programs can become the ground for the creation of a favorable working environment.

Uncertainty Avoidance

The two societies are very different in terms of the dimension of uncertainty avoidance as Poland scores 93 while the UK scores only 35 (Hofstede Insights n.d.). This cultural aspect may be associated with various issues related to strategic planning and innovation. Polish employees try to avoid any uncertainty, so rigid rules and traditions are highly valued. Changes and innovation tend to be resisted as people try to adhere to the rules and behaviors with known outcomes. As mentioned above, the construction industry is characterized by complexity and rigorous standards, so this dimension is specifically influential and should be considered when developing cross-cultural communication patterns (Tijhuis and Fellows 2017). This attitude towards the unknown also explains the leadership styles prevailing in the two cultures. In societies with high uncertainty avoidance, leaders tend to make decisions without involving their subordinates, so autocratic styles are mainly employed (Clarke 2017). In Poland, managers are regarded as primary decision-makers, while UK leaders often encourage employees to take an active part in discussions and the decision-making process.

To ensure effective communication, UK managers should try to minimize the degree of uncertainty. The development of protocols and guidelines can facilitate the communication process as all stakeholders will be able to adhere to certain standards that are associated with an appropriate degree of certainty (Tijhuis and Fellows 2017). It is also important to make sure that the decision-making process involves managers who are willing to play an active role in this context. It has been acknowledged that employees who have international working experiences are more open and prepared to adopt western business strategies (Hammond et al. 2017). Therefore, UK managers need to identify Polish managers with western orientation and those who follow traditions. Each of these groups will require the development of specific communication strategies.

Long-Term Orientation

Long-term orientation is the cultural dimension closely related to uncertainty avoidance. This dimension is associated with the use of a normative or pragmatic approach to the future (Lai 2017). Poland’s score is rather low (38) while the UK scores more (51) (Hofstede Insights n.d.). In terms of these cultural aspects, Polish managers employ a normative approach and try to adhere to established rules and follow the existing traditions. British managers tend to adopt a more pragmatic strand as they are ready to innovate and change the existing rules if they are more appropriate for the current situation. Therefore, UK managers will have to communicate the benefits of the pragmatic approach to the Polish staff. It can be necessary to make the associated changes gradual so that Polish managers could accept them.

The facilitation of communication within this context involves training and the use of advanced technologies. The use of video blogs can be beneficial in this case as well (Wankel 2016). Employees can share success stories related to change implementation, innovation, and the establishment of new standards. Corporate instant messenger and a specific program related to innovation adoption can make employees more motivated and active (Targowski 2016). The establishment of personal relationships with Polish managers will also be fruitful as the creation of rapport will make them less resistant to changes.

Indulgence

The dimension of indulgence reveals the difference between the two nations with 29 in Poland and 69 in the United Kingdom (Hofstede Insights n.d.). This cultural aspect unveils people’s attitudes towards their desires. Polish society is characterized by a significant degree of restraint, while British people are likely to indulge themselves. Restrained societies are oriented on adherence to the existing norms and pay little attention to leisure time. In this respect, UK managers should try to develop personal relationships with employees, which can be achieved during team-building activities and similar venues (McLean and Kim 2017). Informal communication will help build bridges and overcome any misunderstanding or tension (Targowski 2016). Nevertheless, it is essential to remember that these events should include activities that have implications in employees’ professional life. Polish managers can be unwilling to spend their time playing games and having a good time as they might see it as indulging themselves.

Conclusions and Recommendations

In conclusion, it is essential to note that the development of effective communication channels and patterns is the key to the success of any international project. The developed cross-cultural communication strategy should be evidence-based and consistent with the goals of the venture. For such different societies as Poland and the UK, culture-related barriers to the implementation of the project are quite anticipated. To address these challenges, UK managers should follow several recommendations.

1. Staff training is one of the primary steps to undertake as employees should have the necessary skills and knowledge to address the project’s objectives. This training should involve such areas as cross-cultural communication skills, cultural peculiarities of different groups, success stories, and sharing experiences. The use of technology is essential as it will facilitate the development of a favorable working environment irrespective of the time frame and geographic location. Video conferences, instant messengers, wikis, and various social networks can help to make training effective. Training should also include team-building activities that contribute to the development of informal communication in cross-cultural teams.
2. The development of personal relationships between Polish and UK managers is another priority linked to cross-cultural communication. Polish people value this approach and are more motivated when they feel that their effort is noticed. The ambivalent attitude towards power distribution also suggests that a considerable number of Polish employees do not think that autocratic leadership can be effective in the modern business environment. Personal and informal communication can help in developing proper relationships among managers and make democratic leadership (that is typical of UK business contexts) a norm.
3. The creation of linear communication channels can facilitate cross-cultural communication and entrepreneurial zeal in the organization. Although Polish employees tend to be resistant to significant changes and innovations, the identification of active change agents among Polish managers can be beneficial. Instant messengers, knowledge base, and reporting protocols can help people explore their creativity, which can improve the organization’s competitiveness. Knowledge sharing is another aspect to pay considerable attention to since people should be exposed to success stories and various approaches to solving typical issues.

Reference List

Clarke N (2017) ‘IHRD and leader development’, in Garavan A, McCarthy, A and Carbery R (eds) Handbook of international human resource development: Context, processes and people, Cheltenham: Edward Elgar Publishing, 357–76.

Eisenberg J, Pieczonka A, Eisenring M and Mironski J (2015) ‘Poland, a workforce in transition: Exploring leadership styles and effectiveness of Polish vs. Western expatriate managers’, JEEMS Journal of East European Management Studies, 20(4), 435-451.

Garavan A, McCarthy, A and Carbery R (2017) ‘International IHRD: Context, process and people – introduction’, in Garavan A, McCarthy, A and Carbery R (eds) Handbook of international human resource development: Context, processes and people, Cheltenham: Edward Elgar Publishing, 1–28.

Hammond M, O’Shea D and Pearson J (2017) ‘IHRD and global careers’, in Garavan A, McCarthy, A and Carbery R (eds) Handbook of international human resource development: Context, processes and people, Cheltenham: Edward Elgar Publishing, 336–56.

Hofstede Insights (n.d.) ‘Country comparison’ [online]. Web.

Lai Y (2017) ‘IHRD: National cultural and cross-cultural perspectives’, in Garavan A, McCarthy, A and Carbery R (eds) Handbook of international human resource development: Context, processes and people, Cheltenham: Edward Elgar Publishing, 100–28.

McLean GN and Kim S (2017) ‘IHRD and developing global teams’, in Garavan A, McCarthy, A and Carbery R (eds) Handbook of international human resource development: Context, processes and people, Cheltenham: Edward Elgar Publishing, 377–95.

Oswald D, Sherratt F, Smith SD and Hallowell MR (2016) ‘Exploring safety management challenges for multi-national construction workforces: A UK case study’, Construction Management and Economics, 36(5), 291-301.

Soja P (2016) ‘Reexamining critical success factors for enterprise system adoption in transition economies: Learning from Polish adopters’, Information Technology for Development, 22(2), 279-305.

Targowski A (2016) The history, present state, and future of information technology, Santa Rosa: Informing Science.

Tijhuis W and Fellows R (2017) Culture in international construction, London: Routledge.

Wankel C (2016) ‘Developing cross-cultural managerial skills through social media’, Journal of Organizational Change Management, 29(1), 116-124.

The Case Story

The Organization: History and Mission

I have been working as an intern at the Construction Bank of China. This is one of the widely recognized banks in the world today. The financial institution was founded in the year 1954. Its “original name was the People’s Construction Bank of China” (China Construction Bank, 2016, para. 3). The bank’s current name was adopted in March 1996. The “institution is currently owned by the Chinese Government Holding Company” (China Construction Bank, 2016, para. 2). The company has been focusing on the best initiatives in order to support the diverse needs of its customers. The firm uses a powerful mission in an attempt to promote its business model. The bank’s mission is “to provide superior services to the targeted customers, promote shareholders’ value and build up broader career path for associates, and assume full responsibilities as a corporate citizen” (China Construction Bank, 2016, para. 5). This mission is supported by powerful values such as prudence, integrity, and impartiality.

Targeted Situation

From personal experience, I believe that the Construction Bank of China uses the best initiatives to address the diverse needs of its customers and stakeholders. During my internship, I have acted as an assistant in the bank’s business department. As an assistant, my major responsibilities in the bank include assisting the securities business department to collect files. I always collaborate with different teammates to upload business receipts. The team also assists different customers to open new bank accounts successfully. These roles have led to numerous challenges at the institution (Oliphant, 2016). This fact explains why our team has encountered several challenges. For example, there is a time when the members of my team stopped communicating with one another. This issue made it impossible for us to address the needs of our customers.

Stakeholders Involved

The identified issue affected the quality of services available to different customers. This problem attracted the attention of different stakeholders such as the employees, the managers, and the customers. In order to deal with the situation, the assistant Human Resource (HR) manager used his competencies to empower the workers. The leader focused on the best initiatives to understand the potential causes of the problem. The next thing was to implement new changes capable of empowering the members of the team. The most outstanding fact is that the assistant HR manager embraced the best strategies to empower the workers (Oliphant, 2016). This practice addressed the problem and made it easier for the individuals to realize the targeted business objectives.

Description of How the Situation was Addressed

After realizing that our team was not delivering positive results, the leader embraced the best strategies in an attempt to transform the situation. The leader encouraged the individuals to come together and present their grievances. During the process, one of the team members indicated that the supervisor allocated the available resources unfairly. For instance, some of the interns and workers had not been equipped with adequate skills to address the needs of the customers (Oliphant, 2016). The department was unable to embrace the concept of work-life balance. Since the majority of the individuals were required to work for more hours, it became impossible for them to lead healthy lifestyles.

After identifying the nature of the situation, a powerful conflict resolution was embraced by the assistant manager. Different stakeholders such as the workers, the supervisor, and the affected clients were involved throughout the process (Oliphant, 2016). Specific skills such as communication, listening, and problem-solving were embraced throughout the process. I strongly believe that the manager used an approach similar to Kurt Lewin’s Change Model. This is the case because he examined the nature of the issues affecting the stakeholders. This approach made it easier for him to identify the most appropriate strategies towards transforming the situation (Kouzes & Posner, 2012). The leader was able “to unfreeze, freeze, and refreeze the situation” (Oliphant, 2016, p. 5).

The members of the team were empowered and encouraged to focus on the best outcomes. A powerful change emerged since the followers started to communicate with each other. The leader presented the best resources depending on the individual needs of the targeted followers. The other critical issue was that the individuals in the department were encouraged to develop their personal work-life balance philosophies. This initiative encouraged the followers to deal with burnout and stress (Kouzes & Posner, 2012). The concept of empowerment was redefined by the leader. The HR manager argued that every individual was encouraged to undertake various leadership roles. This approach demystified the meaning of leadership in order to empower the team members.

Results of the Undertaken Actions

As an intern at the company, I observed that more customers received better services after the assistant HR manager’s intervention. The implemented change led to new practices such as teamwork, collaboration, interaction. The members of the team were ready to focus on the targeted goals. The individuals were ready to act as leaders and guide their customers. The new wave of collaboration made it easier for the firm to achieve its objectives. Decisions were made much faster than ever before. Such attributes played a positive role in redefining the company’s organizational culture (Northouse, 2015). The implemented action plans made it easier for the workers to engage in various work-life activities. The outcomes explain clearly that the manager (short form for assistant HR manager) was the right person to deal with the situation.

The Analysis

The above case study shows clearly that leadership is a powerful approach that can address the major problems affecting every working environment. The manager embraced the best concepts and initiatives to transform the situation. The process of leadership is tailored in accordance with the encountered challenges and the expectations of different stakeholders. The Kouzes/Posner Five-Part Framework can be used to analyze the presented case story (Kouzes & Posner, 2012). The model outlines the achievements and best practices that can be embraced by leaders to address various challenges.

The first practice outlined in the framework is “Modeling the Way”. As a participative leader, the manager committed himself to the needs of the targeted followers. He used a powerful model to implement new practices and behaviors. The leader outlined specific practices in an attempt to drive performance. The leader encouraged the members of the teams to remain consistent, focus on the best initiatives, and engage in positive practices (Northouse, 2015). During the process, the leader encouraged the individuals to focus on the best concepts such as teamwork and collaboration. The workers were also encouraged to engage in continued conflict resolution (Oliphant, 2016). This practice has the potential to improve the performance and productivity of many workers.

The next practice is “Inspiring a Shared Vision”. After collaborating with the workers in the affected department, the leader encouraged them to have a clear focus. A new vision aimed at transforming the situation and improving productivity was communicated to the workers. The leader believed strongly that the issues affecting the team could be addressed successfully. The HR manager indicated clearly that a new culture was appropriate towards transforming the situation. He inspired the best vision and empowered the workers to act ethically. The supervisor was also reproached and guided to support all the followers equally (Kouzes & Posner, 2012). By so doing, the leader was able to generate a sense of excitement. The promotion of the work-life balance concept encouraged the workers to re-pattern their experiences.

The actions of the leader were in accordance with the third principle of the Kouzes/Posner Five-Part Framework. This step focuses on the best approaches to challenge the existing process (Northouse, 2015). The HR manager used his superior skills in an attempt to implement new strategies. The leader began by challenging the existing system and promoting new processes capable of empowering more workers. Throughout the process, the leader encouraged the members of the team to present the best ideas that could make a difference for the department. The manager used a powerful strategy to transform the situation. The process made the organization successful. The leader clearly understood that the existing situation was making it impossible for the team to realize its objectives.

The next practice outlined by the model is “Enabling Others to Act” (Kouzes & Posner, 2012, p. 39). After outlining the unique issues that were affecting the department to realize its goals, the leader was on the frontline to foster empowerment and collaborations. The members of the team were guided to make the most desirable decisions in an attempt to improve the level of performance. The leader created the best environment and encouraged the individuals to formulate their personal work-life balance philosophies. This approach made it easier for the team members to focus on the best outcomes. The team members felt powerful and more empowered than ever before. Consequently, every individual embraced the best approaches in order to deliver quality services to the targeted customers. The supervisor was encouraged to equip the followers with the right resources. The followers were also allowed to have a sense of responsibility (Northouse, 2015). The workers became motivated and ready to deliver positive results. This strategy made it easier for us to analyze and address the changing needs of the customers. This practice will play a critical role in making the bank successful.

Conclusion

The next process is “Encouraging the Heart”. The process focuses on the most desirable strategies towards empowering employees. The leader was aware of his personal goals and those of the followers. In order to produce the best outcomes, the assistant HR manager motivated and encouraged the workers to act independently (Oliphant, 2016). The leader recognized the achievements of different individuals in the department. This kind of recognition encouraged the workers to work hard and address the changing needs of the targeted customers. The leader was involved throughout the change implementation process. The practice increased the sense of belonging and encouraged the workers to perform better. The members of the team were willing to focus on the anticipated organizational goals. The supervisor supported the team members after the leader’s intervention. That being the case, the assistant HR manager proved that every person can take up leadership roles to transform the situations affecting his or her working environment.

References

China Construction Bank. (2016). Web.

Kouzes, J., & Posner, B. (2012). The leadership challenge: Workbook. New York, NY: Jossey-Bass.

Northouse, P. (2015). Introduction to leadership: Concepts and practice. New York, NY: Sage Publications.

Oliphant, J. (2016). Applying Kouzes & Posner’s leadership concepts to poverty alleviation work in the developing world. The Journal of Values-Based Leadership, 9(1), 1-10.

Executive Summary

The real estate market in Dubai has experienced a long period of rapid growth. The government of Dubai has been keen on supporting this industry, but it avoided influencing the pricing of the products. Forces of demand and supply have been allowed to define the pricing of the products. However, players in this industry have been manipulating these forces to inflate the prices of housing units. Now that supply and demand forces are reaching equilibrium and the actual product prices are evident, the industry is experiencing a slowed growth as potential buyers wait for the prices to drop even further. Although it is expected that after some time this growth will achieve its previous trend, currently the players in this industry have to find a way of overcoming the storm in the market. Several recommendations have been made to help this firm overcome some of these market challenges. It is recommended that KLM Construction Company should expand its market scope when sourcing for raw materials so that it is not limited when making its procurement decisions. The firm should also consider embracing vertical integration strategies by forming mergers or acquisitions in the market. In its current market, it is suggested that the company should focus more on improving the quality of its products than on the issue of pricing as a way of creating a niche in the market.

Review of the Real Estate Market in Dubai

To conduct a comprehensive review of the real estate market in Dubai, STEEPLE Model and Porter’s Five Forces Model will be very important. The STEEPLE Model will help in the analysis of the external environmental forces in the country that affect business activities. The social environment in Dubai has been transformed over the years because of the increasing number of foreigners who are attracted to the city. Its cosmopolitan nature makes it easy to do business in this market. The market is socially designed to meet the needs of both locals and foreign clients. Advancement in the field of technology is also transforming the real estate market. Companies in this industry are making use of technology to lower the cost of production, reduce the time of completing the projects, and improve the quality of the products they deliver to the market.

The economic environment in Dubai has been very supportive of the industry. The real estate market in Dubai has experienced a prolonged period of growth over the last two decades. According to Musa, this started with the emergence of Dubai city as the leading business hub in the region (77). This saw an influx of people into the city which pushed up the demand for houses and office space in the city and its environs. At first, the real estate attracts the rich local Emirati businessmen who saw an opportunity in this market. However, international players were soon attracted to this market due to the ever-rising demand. The construction of Burj Khalifa, the world’s tallest building saw many people travel to the city as tourists to view it and other beautiful sceneries in the country. This meant that the demand for hotels was also rising steadily. Leading multinational corporations in the real estate market such as Knight Frank Agency found their way into the Dubai real estate market.

The cost of buying homes in the country was consistently going up and so was the cost of renting home and office space within the city. This was a positive market indicator for firms in the market. KLM Construction Company being a mid-size company was not much affected by the entry of the giants into the local market. It was not easy to meet the demands, and that explains why the management decided to expand its capacity. It was receiving more orders than it could handle. The management was worried that constant turning away of customers would tarnish its image in the market. It would make the potential clients believe that it could not deliver the products they needed. On the other hand, taking more orders than it could handle was dangerous. Once the clients paid up, they would demand a speedy completion of their projects. There was a fear of delivering substandard products or delaying in delivering the products. This would also tarnish their image in the market. The best option for the firm was to increase its capacity by hiring more employees and improving procurement and construction efficiency.

In 2015, things changed for the worst at a time when many firms in this industry had prepared numerous products for their clients. According to the report by Cooper, the sale of residential houses in Dubai fell by close to 70% in the first quarter of 2015 as compared to the sales registered in the same period in 2014 (99). There has been speculation that Dubai may soon face a property bubble which many analysts have blamed on unsustainable price dynamics. The government of Dubai has avoided any direct intervention in influencing the prices of products in the real estate, a move that some economic analyses claim was dangerous for the industry in the long run. Many construction companies and agencies, including KLM Construction Company, have delayed most of their projects as they monitor the progress of the industry. However, the future of this industry seems uncertain and many firms are contemplating diversifying their products in the market. For KLM Construction Company, it will be necessary to re-evaluate its entire system, focus on having a lean workforce and improve efficiency in all its operations.

The political environment in Dubai has been supportive of the real estate industry. The political class has avoided any negative intervention in this industry. Cooper says that the government of Dubai has been very supportive of the real estate industry which explains why it has experienced massive growth over the past two decades (83). The government has also designed the legal environment to support the industry. There are laws and regulations which govern how players in this industry should conduct their activities. Finally, the issue of ethics is also very important in this industry. The relationship between real estate companies and their suppliers and clients is governed by strict ethical policies to ensure that there is fair play at all times.

Porter’s Five Forces will be important in understanding the competitive forces in this industry, and how they can be managed by KLM Construction Company. The figure below shows the model.

The threat of substitute products in the real estate industry in Dubai is almost non-existence. There are no proper substitutes for the products offered in this industry. However, the threat of new entrants is real. Numerous foreign firms have made a successful entry into this market because of its attractiveness. This has made the rivalry among the existing players very stiff because each firm is trying to expand its market share. Some of the materials used in the industry are imported from China and Japan. This has increased the bargaining power of some of the large suppliers who have control over important raw materials. The bargaining power of buyers has been relatively low over the past two decades, but the slowing growth of the market is increasing their power because they now have several choices to make when they want to buy or rent a housing unit.

Demand and Supply Factors

The United Arab Emirates has experienced prolonged economic prosperity over the years due to its political stability and strategic location in the region. The city of Dubai was not known to many in the 1960s or 1970s. It was just another Arab city that was strategic to the business people that were looking for oil to meet the needs of the West. However, the government of Dubai started developing the city as a business hub using the proceeds from the export of oil. Within the last twenty years, the city has grown dramatically to become one of the most popular business hubs in the world. Improved transport network and security in the region are some of the factors that promoted an influx of people into the city.

The supply of rental houses and office space, which is currently considered to be more than demand, was a direct result of the increasing number of people. In the 1990s and early 2000s, there was a sharp shortage in the supply of housing units and office space in the country. The few houses that were available in the country were not able to meet the increasing demands, especially for the international business people who wanted comfort. The hospitality industry started booming in the late 1990s, but the tourists were not satisfied with the kind of hotels that were available in the city. Some had been constructed several years earlier while others were below the standards they expected. The Industry Life Cycle can be used to explain the path that this industry has taken over the years to reach its current position and the product life cycle of what is offered to the clients.

It is important to note that the data used was from 1900 when the city started gaining a modern shape under the reign of the Al Abu Falasa dynasty. The demand kept pushing up the supply. The industry-first attracted the attention of the local players who saw a big opportunity in meeting the demand. The industry soon became attractive to international players. The government of Dubai has been keen on supporting the industry in a bid to solve the problem of the shortage of housing units. The rate at which the supply of housing units rose started exceeding the rise in demand for the products in mid-2013. However, many players in the industry believed that the demand will start rising sharply, hence they continued supplying the products in the market. The year 2014 was the best among the real estate players because the price peaked despite the slowing demand for housing units. Currently, the supply has surpassed the demand, and many firms are holding their products hoping that the industry will change for the better.

The current status of demand and supply puts the procurement department at KLM Construction Company in a very awkward position. The firm was recently forced to increase the number of raw materials it uses. Some of these materials are sourced overseas, especially from China and Japan. The procurement department had put measures in place to ensure that more of these products were sourced ready for use in constructing houses for rental and office space. However, the demand has fallen drastically. This turn of events will force the firm to review its entire operating system. All the departments are affected, especially the procurement and human resource departments. According to Cooper, it remains unclear whether the country is about to experience a property bubble or the industry will start experiencing impressive growth once again despite the current drop in housing demand (88). The inability of the economists to predict the future of this industry puts the procurement department in a very delicate position. In case the demand will continue falling, then it will force the firm to cut links with some of its suppliers and only retain those whose terms were considered the best. However, if the demand shall start to rise once again, then the firm will need to retain all its existing suppliers for business continuity in this competitive industry. As of now, it is not clear what the future holds for real estate players in Dubai. The best that this firm can do right now is to come up with measures that will help it survive the current market troubles.

Current Pricing Mechanism

The pricing of products is one of the most important factors that define the sustainability of an industry. According to Turner, the best way of determining the pricing of a product is to allow supply and demand forces to play off in the market (56). This pricing mechanism has been very popular in capitalist economies around the world where the principle of willing buyer willing seller is very common. In this mechanism, when the numbers of willing buyers are higher than the number of willing sellers, then the price will go up. The demand for products in such scenarios is considered to be high. On the other hand, when the number of willing buyers is lower than the number of willing sellers, then the demand will drop which would lead to a drop in product prices. For the last 20 years, the number of willing buyers in the real estate sector in Dubai has been higher than the number of willing sellers. This saw the price of many housing units increase considerably over the years. However, the trend has seemingly changed in this market.

Since supply and demand pricing mechanism remains the best and most popular way of setting prices of products, Baily warns that government should always be keen to monitor industry trends to intervene in case there is exploitation (113). The current problem that is witnessed in Dubai is not a drastic drop in housing demand. The problem is that pricing in this industry has remained unchecked for a very long time. As a result of this, real estate agents have been pricing their products much higher than what they should cost. The market is now reaching equilibrium, a stage where the best price for the products is set by natural market forces. It is now coming to the attention of the clients that the prices set by the real estate agents are much higher than the actual cost. This has made many potential buyers refrain from purchasing houses till they are convinced that prices have normalized. This is what has caused the current problems.

The management of KLM Construction Company has a pricing mechanism that is based on its terms and conditions that defines its operation in the market. According to Baily (18), when setting up terms and conditions, the primary interest of a firm should always be to meet the needs of its customers in the best way possible without jeopardizing its own need to be sustainable. As such, these terms should be favorable to the customers, but in a way that will ensure that the firm remains profitable. For example, there should be a term that states how long the client should take to make the payment for the product they have purchased. The liability issues should also be clearly stated in the terms and conditions and the clients must be made to understand these terms before signing the purchase documents.

One area that this firm should be keen on is the issue of the battle of forms. This can be common when selling its products in the market. The management should be keen to ensure that when a battle of forms arises, then the conflicting interests are harmonized as soon as possible and in the best way possible. No single purchase should be finalized if the two parties have not agreed on how to conclude the process (Fung and Tse 56). No assumptions should be made because such assumptions may lead to litigation. As Cooper (87) ways, every court case that a firm engages in affects its image in the market negatively, especially if it involved the firm and one of its customers. Specialist Insulation Ltd v Pro-Duct (Fife) Ltd [2012] CSOH 79 is an example of litigation that resulted from the inability of the parties to harmonize their terms and conditions before engaging in business activity. Both parties assumed that the business engagement would be based on their terms. This led to a lengthy court battle to prove whose terms had to be upheld. KLM Construction Company should avoid such cases.

Conclusion and Recommendations

The discussion above reveals that the real estate market in Dubai is big and it is still growing. This is one of the fastest-growing cities in the region and as such the demand for houses is expected to continue rising. It means that the current high demand for housing products currently witnessed in the market is expected to grow with the increase in the population. However, the emergence of new firms, both local and foreign, has stiffened competition. Firms are keen to protect their market share using various strategies. KLM Construction Company is forced to come up with effects that can help it overcome this challenge. One of the ways of doing so is to come up with procurement strategies that will enable it to lower its production costs. To win customer loyalty, KLM Construction Company is forced to have fair pricing for its products. This can only happen if it can lower its costs of production, which means that it must have ways of getting high-quality raw materials at low costs. The following recommendations may help this firm achieve these objectives.

• The management of KLM Construction Company should expand its market scope when sourcing raw materials. There are chances of getting better deals if only the firm has more options to make.
• The management of this company should consider vertical integration where it forms a merger or acquires firms supplying it with most of the important raw materials. The strategy will increase its bargaining power in the market.
• To manage the competition in the market, this firm should focus more on the quality of its products than on the price. By focusing on quality, it will be creating a unique niche for itself in the market.

Works Cited

Baily, Paul. Purchasing principles and management. Harlow: Financial Times/Prentice Hall, 2009. Print.

Cooper, Peter. Opportunity Dubai: Making a Fortune in the Middle East. Petersfield: Harriman House, 2015. Print.

Fung, Hung, and Yiuman Tse. International Financial Markets. New York: Cengage Learning, 2015. Print.

Musa, Muhammad. Report: Dubai 2014. Oxford: Oxford Business Group, 2014. Print.

Turner, Robert. Supply Management and Procurement: From the Basics to Best-in-Class. Fort Lauderdale: J. Ross Publishers, 2011. Print.

Businesses incur various expenses in the course of their operations. It is critical to determine whether to capitalize or expense various financial operations of the business. Inappropriate accounting of financial transactions would make it difficult for an organization to determine its real financial position. This may pose several problems in planning. Whether to capitalize or expense interests and property taxes is one of the most contentious issues in accounting.

Interests and property taxes constitute the holding costs of the property. Companies usually capitalize taxes that a property may accrue while undergoing preparation to match its intended use. Therefore, taxes form part of the property costs. Companies should capitalize property taxes if the incremental increase in taxes is directly due to the construction activities. This is regardless of whether the property was operational before development (Nikolai, Bazley, and Jones 479). Therefore, Herb Construction Company should capitalize on the property taxes of the hotel it is constructing. This is because the taxes of the property are directly due to the development of the property.

Herb Construction Company has three alternatives on how to treat interests during construction. It may opt not to capitalize interest during construction, capitalize a certain amount of interest, or capitalize interest on all funds used in developing the property. If the company opts not to capitalize interest during construction, then it should treat all interest as total costs of borrowing funds. Herb Construction Company should treat interest as an expense during the entire period of the interest (Nikolai, Bazley and Jones 480). The company should record other interests – such as interest on funds borrowed to purchase property, plant, or equipment – similarly.

Herb Construction Company may also capitalize certain amounts of interest. In this option, the company would assign a certain interest to all funds, regardless of whether the company borrows the funds borrowed or not. The company would assign and capitalize interests on equity and borrowed funds that it uses in developing the property. This option provides the best economic costs of the development of the property. However, the major limitation of this option is that there is no definite rate that the company may assign the equity (Nikolai, Bazley, and Jones 480).

Herb Construction Company may also capitalize interest on all funds that it borrows to develop the property. This option requires companies to treat borrowed funds as part of the cost of the acquisition of the property. Therefore, the cost of borrowed funds is similar to other construction costs. Since the asset is not generating any revenue while under construction, the matching principle necessitates capitalization of the cost of interest of the property (Nikolai, Bazley, and Jones 480).

A company should capitalize an asset that is for its own use, or if it intends to sell or lease the property after its completion. Therefore, Herb Construction Company should capitalize interest and property taxes of the hotel under construction. However, not all properties merit capitalization. A company cannot capitalize a property that is ready for its intended use, or if the company does use the property in its earning activities (Nikolai, Bazley and Jones 480).

The amount of interest that Herb Construction Company may capitalize depends on the funds that the company borrows and the cost of borrowing the funds. The company should determine the interest rate by allocating a certain interest rate on the average cost of the investment for the property during the capitalization period. If expenditure on the asset outweighs cost of borrowing or there is no precise borrowing, Herb Construction Company should assign a weighted average interest rate on all other borrowings (Nikolai, Bazley and Jones 480).

Reference

Nikolai, Loren A., Bazley, John D. and Jones, Jefferson P. Intermediate accounting. Belmont, CA: Cengage Learning, 2009. Print.

Introduction

Construction firms have many reasons to rejoice if they implement risk management in their construction projects. They can help in the global programme on climate change, promote health for their workers and prevent accidents in construction sites. However, there is strong evidence that this is not what is happening in the UK construction industry.

In Britain alone, the construction industry has a poor record of promoting health and safety. Practices of issuing bonuses can be dangerous to workers because they tend ‘to cut corners’. Workers in constructions are also at greater risk than the people in the community of sicknesses like cancer. (Pritchard 172)

The United Kingdom has experienced a long period of industrialization. Sites have already been damaged, and there are unstable grounds and the presence of hazardous substances, creating poor working conditions on the present industrial workers. (Institution of Civil Engineers 4)

The UK construction industry is one of the most risk-related sectors. Risks are associated with environmental problems as a result of the generated wastes in construction sites. The health and safety of the workers are not properly addressed to. Reports of accidents are among the highest with fatalities ranked the third of all industries. (Pritchard 172)

A study on the attitudes of workers in construction sites by Dedobbeleer and German, revealed a remarkable relation between attitudes of employees to safety to attitudes and behaviours of management; this is with respect to on-site or off-site. The researchers concluded that management have a vital role to play in promoting the health of workers in construction sites. The study also found that workers in the construction industry in Britain were perceived unhealthy by the participants who were students. (Pritchard 173)

Construction activities produce construction and demolition wastes (C&DW), pollutants from the air, solid waste, and water, and other hazardous material. The construction industry is a major generator of waste, and accounts for 50% of the waste deposited in a typical landfill. (Institution of Civil Engineers 1) The Environmental Agency Online reports that the UK produces waste to around 330 million tonnes annually.

Most construction firms follow the ‘find and eradicate’ strategy for risk management; meaning they do not have definite method of risk management. Construction firms first identify risks and then find some effective and efficient methods to reduce the potential for loss. For any construction company, risk identification and risk management are the keys towards successful implementation of any commercial strategic plan. (Thompson & Perry, qtd. in Ahmed, Ahmad, and de Saram 225)

Risk management in the UK construction

Saied suggests that managing risks involves taking care of the safety and security of individuals or organizations (46). In the UK, ninety percent of demolition waste is recycled, and the UK uses the ‘3Rs’ which is reclaim, reuse, and recycle (House of Lords).

There is evidence that the government is now doing its homework. The government has enforced the site waste management plan, which should be implemented by construction firms before construction begins. All construction projects which started after April 2008 and which have a construction value of more than £300,000 must have a Site Waste Management Plan (SWMP). This provides a structure for waste delivery and disposal at all stages of the construction project (Department of Environment, Food and Rural Affairs). The regulations are enforced by the Environment Agency and potentially, both the HSE and local authorities. The fines range from £300 (fixed) up to £50,000 (court fines). (Booty 109)

A site waste management plan provides a framework to improve environmental performance, meet regulatory controls and reduce rising costs of disposing of waste. Adopting a site management approach based around an effective SWMP has brought benefits to construction firms including:

• Better risk management and control of wastes and other hazardous materials in construction sites;
• Provides a demonstration of waste management and cost and risk control;
• Compliance with laws and regulations, and constructions firms do not have to worry with requirements; and
• There is better management of supply of materials, including handling and disposal of waste, and other methods of the 3Rs. (Sunih 202-3)

The implementation of SWMP in the UK is a good example of risk management in the construction industry. This should minimize waste construction and demolition waste which has caused environmental harm and endangered the health and safety of the workers. Stricter laws should be formulated for its strict implementation.

The management of construction firms should do their part in health promotions of the workers and in preventing accidents in construction sites.

Discussion

Risk management aims to provide customer satisfaction (Turnbull, 1999), well-structured earning profiles (Cary, 2000; Cadbury, 1992), and a common framework for consolidating projects (Godfrey, 1996). (Holt 253)

Peter Bernstein (2000, qtd. in Holt 253) suggested that risk management involves analysing risks or surprises that are expected to happen in the course of undertaking a project and the management of the possible outcomes of such a project using laws and theories that have already been tested, for example, the laws of probability which utilize statistical measurement, regression, and the utility theory.

Distinctions on risk and uncertainty have been made by authors such as Frank Knight and Schumpeter (1997). The distinction states that a risk can be a probability and can be expressed in the example of tossing a coin. In the uncertainty example, probability cannot have a hold on it. Uncertainty can only be seen through estimates.

Design assumption risks occur when the structural design of a building is prepared without proper consultation with the client who invests in the development of that specific building.

Let us consider a scenario in which construction has started without the needed consultations between the client and the contractor. This is a total risk related project. There could be risks in the design and in the implementations. Further changes that may be applied in mid-construction may cause an irreparable damage. Value management and value engineering are some of the risk planning methods to avoid accidents. Functional analysis can help manage risks. The client and the value engineering team who conducts the study can confer with each other on some specific functions of the project. All loopholes and problems are discussed and given possible solutions before construction starts.

Conclusion

Man’s existence is plagued with risks and uncertainties. From the time he set forth on earth, he has encountered accidents and calamities. Many of these accidents are outcomes of discoveries, inventions and innovations. But an almost equal number can be said as natural accidents or catastrophes. Biblical history relates how our ancestors took risks to attain their goals. Instinct of self-preservation drove them to survive those risks which had threatened extinction. They avoided dangerous areas and situations. They made tools and learned to invent new things, no matter how crude. They learned how to plan their activities.

Risks can lead to peril and harm if they are not anticipated. Experience can help in the process of planning for new projects. Technological inventions provide areas for possible risk encounter, for example the industrial revolution characterised by major events which introduced a lot of changes in the workplace and organisations. Modern capitalism emerged after a transition period over several centuries, during which the conditions needed for a capitalistic market society were created. Risks account not only in physical terms, but also in abstract terms like financial and economic outcomes.

Environmental risks, accidents and deteriorating health of workers are some of the risks associated with the construction industry. Workers who are not provided adequate basic necessities will surely perform poorly and may injure themselves. Although risk management practices have been instituted by construction firms, to include the various stakeholders in the private and public sectors in the industry, there is still much to be done.

Risks multiply in the construction industry. If there are not enough measures undertaken, there will surely be environmental danger and harm which will add to the deteriorating environmental problem.

Constructions in the United Kingdom have always posed serious problem to the environment. It has generated enough a vast amount of construction and demolition wastes, environmental (chemical) hazards, and other problems that the community has to face. The government has instituted measures but there are many things yet to be done. A close partnership and cooperation between the private and public sector has to be instituted and continuously encouraged.

To manage risks, the UK government has instituted measures. Its programme of waste management in the construction industry has motivated the private and public sectors to implement the site waste management plan. This plan has been in effect for some time now. It enables the contractor and owner or client to agree on the practical ways to dispose of the construction waste and environmental hazards before construction project starts. Value management and value engineering are some of the activities that should help in managing risks in construction projects.

Naflos investments company is a dynamic and leading construction company wishing to expand its business investments into the far East. Our main reasons as to why we choose the Philippines is because of it rapidly expanding market and its strategic location.

Philippines also offers a conducive investment environment which is bound to attract many investors world-over.

Introduction

• Philippines as a republic gained independence in 1946.
• It comprises of 7000 Islands with a total area of 300000sq. Kilometers.
• Most of its citizens are descendants of Indonesians and Malays.
• However the largest language group currently is the Chinese.
• Save for intermarriages, Philippines’ population comprises of Arabs, Americans, Asians, Spaniards and the Chinese.
• Philippines’ main natural resources are copper, gold, iron, silver and nickel.
• The main cash crops grown are mainly for export and the food crops are for domestic consumption.
• These crops include; coconuts, rice, pork, bananas among others.
• The agricultural sector employs most of the work force but contributes about a fifth of the country’s GDP.
• The type of industries found in this country includes food processing, textile and garment production, paper and paper products production among others.

According to U.S. department opt the state n.d).Philippines is a republic and it gained its independence in 1946. Geographically Philippines comprises of 7,000 islands with a total land area of 300,000 km2. Most of the people in this country are the descendants of Indonesians and Malays. However, currently the largest language group is the Chinese but Arabs and Indians trade with the Philippines. Due to intermarriages, the population of Philippine includes; Arabs, Americans, Asians, Spaniards and the Chinese. The Chinese group has created a great impact on commerce because they mostly came to trade.

Aim

• The aim of the report is to analyze the economic sectors of Philippines. This will aid AXN Limited which is in the process of undertaking international business. As a result the firm will be able to determine the viability of Philippines as an investment destination. The analysis is conducted with respect to the country’s neighbors. Neighbors.

The aim of the report is to analyze the economic sector of Philippines and its neighbors and how to manage a business if one is to invest in Philippines.

Scope

• Analysis of issues that affect the economic growth Philippines.
• Analysis of Philippines economy and its neighbors over the past few years.
• strength of the service sector.
• Relationship between Philippines and other countries.
• conclusion and recommendations.

The report entails analysis of issues that affect the economic growth Philippines. Analysis of Philippines economy and its neighbors over the past few years is conducted. In addition, the report also gives the strength of the service sector which is the strongest. Relationship between Philippines and other countries is identified and discussed. Finally, a conclusion and a set of recommendations are given.

Discussion

• Economy of Philippines and its neighbors:
  • Philippines is among the largest economies in the world today with a GDP of 7.3% in 2007.
  • However in 2008, the growth rate declined with 4,5% mostly due to the global financial crisis.
  • Besides agriculture and industry, the other major contributors of economic growth in the Philippines includes natural resources including energy reserves (such as) natural gas, coal, oil, hydro and geothermal energy among others.
• The strength of each economic sector in the country:
  • The service sector is stronger than the other sectors in the Philippines since it contributes about 50% of the country’s total output.
  • The industry sector is equally strong and contributes about a third of the country’s output.
  • The agricultural sector contributes only about 0.2% same as the business process outsourcing, food processing, electronics, textiles, garment and automobile parts.
• Does the Philippines and its neighbors complement each other:
  • Philippines has a good relationship with most of its Asian countries linked through its membership in ASEAN, ASEAN (Regional Forum) and APEC forums.
  • It also has a close relationship with other Middle East countries which provides employment opportunities for most of its people.
  • The country has also signed agreements with JPEPA including trade agreements with Korea, China among other countries.
  • The trade agreements have contributed to the country’s economic growth through market expansion.
  • Philippines has also expanded its market to the USA whereby it exports computer peripherals while importing raw materials and partially processed materials.
  • Therefore, the Philippines and its neighbors are not competitors but rather they complement each other.

According to Madoc n.d. para.1) Philippine is considered to be among the largest economies in the world. It has a mixed economy and its economy is growing very fast with a GDP growth rate of 7.3% in 2007. This growth was mostly influenced by some factors such as increase in agricultural production, increase government and private expenditure and a robust information communications. In addition increased private consumption by workers from overseas also contributed to the economic growth. (U.S. department t of state. n.d. para 5)

However, in the year 2008 the growth rate declined with 4.5% mostly due to global financial crisis. In the Philippine economy agriculture and industry are the most important sectors. In agriculture food processing is boosting the Philippine economy while in industry electronics, textiles and garments and automobile parts are the ones mostly contributing to the economy. ( Madoc .n.d .para.1). As a newly industrialized nation, the Philippines is still an economy with a large agricultural sector, however services are beginning to dominate Asian. Much of the industrial sector is based on manufacturing electronics and other high-tech components.

In addition Philippine has natural resources such as copper, nickel and chromites. The country also has energy reserves such as natural gas, coal, oil, hydro and geothermal .natural gas is mostly found in the island of Palawan. Therefore mining is also contributing to the Philippines economy. Although this country is considered as the leading gold and copper producer, its production is declining because of high production costs required, decrease in the prices of metals and poor infrastructure. in Philippine industrialization mostly is urban areas but also in other areas such as metropolitan Cebu which attracts both the local and foreign investors.

During the regime of Ferdinand Marcos, the economy grew at a rate consistently slower than the years preceding his reign and following his exit. This was mainly because he embezzled billions of dollars from the national treasury. By the time of the people power revolution, there was less to be saved since the economy had fallen below the growth rate of other Asian countries.

However the current administration under the leadership of Madam President Gloria Arroyo has been marked by radical and risky moves pushing towards faster and more rapid economic growth.

In Philippine according to (history central n.d ) the service sector is stronger than the other industries in the economy. This is because it contributes more than 50% of the countries output. The industry sector is also strong in Philippine because it contributes not less than a third of the countries total output while the agricultural sector only contributes about 0.02%. Therefore business process outsourcing (BPO), food processing, electronics, textiles and garment and automobile parts

The service sector contributes more than half of overall Philippine economic output, followed by industry (about a third), and agriculture (less than 20%). Important industries include food processing; textiles and garments; electronics and automobile parts; and business process outsourcing.

Philippine has a good relationship with most countries such as Asia and even the Asians neighbors. Philippine is linked to these countries through its membership in (ASEAN) the association of southwest Asian nations. Philippine is also a member of the ASEAN regional forum (ARF) and the Asia-pacific Economic Cooperation (APEC) forum. The Philippines also has a relationship with the countries in the Middle East where most of its people are employed (US department of state .n.d. para. 10).

In addition the Philippine also signed agreements with Japan under the Japan Philippine Economic Partnership Agreement (JPEPA). According to U.S department of state( n.d. para 11) the Philippine also has some trade agreements with other countries such as Korea, China, and Australia. These trade agreements have contributed to the growth of the economy of Philippine because they have enabled it to easy market its products.

In the United States of America its major exports are mostly the industrial products such as computer peripherals, electric machinery and also the automobile parts. In addition it exports agricultural products such as wheat, coconut oil and animal feeds among other goods. On the other hand Philippine imports the products from United States of America. Philippine imports mostly the raw materials and the partially processed materials to process and manufacture its products. There Philippine and its neighbors mostly do not compete but rather they complement.

Conclusion

• Philippines is among the countries whose economy is growing at a fastest rate.
• However, potential investors are concerned about the country’s infrastructure, corruption, law and order and political instability.
• Therefore the Government should make considerations in terms of addressing these shortcomings.
• Although almost 40% of the farmland is arid, Philippines is rich in agricultural potential.

In addition the Philippine also signed agreements with Japan under the Japan Philippine Economic Partnership Agreement (JPEPA). According to U.S department of state n.d. para 11) the Philippine also has some trade agreements with other countries such as Korea, China, and Australia. These trade agreements have contributed to the growth of the economy of Philippine because they have enabled it to easy market its products.

In the United States of America its major exports are mostly the industrial products such as computer peripherals, electric machinery and also the automobile parts. In addition it exports agricultural products such as wheat, coconut oil and animal feeds among other goods. On the other hand phillippine imports the products from United States of America. Philippine imports mostly the raw materials and the partially processed materials to process and manufacture its products. There Philippine and its neighbors mostly do not compete but rather they complement.

Recommendations

• The level of corruption should be maintained at minimal levels.
• Effective strategies should be formulated to ensure political stability.
• Provision of funds to various economic sectors.
• Conducting an in-depth environmental analysis

In order for Philippines to attract foreign investors, a number of policies should be considered.

The government should ensure that the level of corruption is maintained at minimal levels. In addition, effective strategies should be formulated to ensure political stability.

The government should provide funds to various economic sectors to improve various economic sectors.

Before determining on the economic sector to venture into, investors should conduct an in-depth environmental analysis to determine the feasibility of venturing into the sector.

Reference List

Economy Watch. (2010). Phillipines economy. London: Stanley St Lab. Web.

Historycentral.com. (n.d). Nation-by-nation: Philippines. Web.

Sutter, R. & Huang, C.H. (2010). Comparative connections. Trade agreement registers China’s prominence. Georgetown: Georgetown University. Web.

Us Department Of State. (n.d). Background note: Philippines. Web.

Swiss Business Hub. (2006). Food processing and packaging equipment market in ASEAN: an industry overview. Singapore: Converging Knowledge PTE Ltd. Web.

In the modern economic environment, exposure to cyber threats has become a prevalent concern due to the tremendous damage that cyberattacks can cause. Ranging from financial losses to the disruption or even destruction of a supply chain, the outcomes of cyberattacks have an especially lasting impact on the construction industry (Egege, 2018). Due to the possibility of misconfigurations in the management of the construction processes, the outcomes of cyberattacks on construction companies can be dire (Owolabi & Olufemi, 2020). Given the increasing threat of cyberattacks, as well as online data leakage, such as people posting snippets of classified information on social media, the second point, which implies evaluating the susceptibility to damage, needs to be revised. Specifically, given the probability of data leakage, the possibility of the performance of the system being disrupted intentionally may become possible. Thus, a more covert approach toward the assessment of the key vulnerabilities needs to be conducted to avoid instances of vandalism.

Moreover, to balance out the threat described above, an additional measure can be proposed as a supplementary strategy of the plan. Specifically, it will be necessary to check the existing information systems and channels before the assessment of vulnerabilities within the construction industry and delineating a plan that could be implemented in case of an emergency. For this purpose, the data management frameworks within an organization and the existing communication channels will be monitored. Although the described step does not guarantee complete safety from a cybersecurity breach, it will create a defense system that will guard an organization from the possibility of its data being disclosed to third parties (Sydorenko, 2017). Therefore, the introduction of an extra step that involves monitoring and securing the current communication channels used by the company and its staff members must be deemed as necessary.

References

Egege, C. C., Ayegba, M. O., Omange, O. M., & Ntem, T. S. (2018). Overview of ICT usage in construction industry: A case study of Lagos State, Nigeria.International Journal of Advances in Scientific Research and Engineering (IJASRE), 4(9), 31-40. Web.

Owolabi, O. S. B., & Olufemi, O. D. K. (2020). Effect of the use of ICT in the Nigerian construction industry. The International journal of Engineering and science, 7(5), 71-76.

Sydorenko, O. (2017). The influence of the implementation of E-tendering on the competitiveness of small and medium enterprises in construction industry. Economics & Education, 2, 35-40.

Contracts are the basis of an agreement between parties who expect services or goods from each other. They are legally binding agreements between the parties and are act as evidence for agreement between parties in courts. Failure of a party to honour the deal as per the contract initiates court battles. The contracts are categorized into lump-sum or fixed-price, cost-plus, and guaranteed maximum price contracts.

Lump-sum contracts, also known as fixed-price contracts, transfer the risk of losses from the buy to the seller. Buyers and sellers agree on the total cost incurred in the process and combine it with the profits the contractor demands (Haidar 44). The losses or gains made by the contractor depending on how well they manage the work in progress. In cases where the contractor mismanages the materials, the resulting loss is excellent. On the other hand, if the contractor spends wisely on the resources, they make a higher profit than expected. The customer uses these contracts to transfer the mismanagement risks to the contractor. One of the demerits of using this type of contract is that the vendor may use poor-quality materials to increase profits, leaving a weighty burden on the owner. However, the vendor may incur extra costs that they had not budgeted for if a need arises since they cannot request additional fees from the customer.

Conversely, cost-plus contracts are agreements between two parties where the contractor receives payment for the actual cost of their work. Vendors commonly use this contract in construction and development works. The contractor transfers the risks encountered likely to be experienced to the owner. The contractor must account for every cost incurred in cost-plus contracts by providing money transfer documents as evidence (Flammer 1307). Without the proper documentation, the owner may deny them payment for the expenses tabled. In cost-plus contracts, the costs consist of the costs faced directly or indirectly as long as there is evidence to prove the occurrence of a fee. Besides the customer reimbursing the costs, the contractor receives payment for their activities in a percentage share of the total costs. They, therefore, make profits in return in this form. Cost plus contracts are also referred to as cost reimbursement contracts because they are contractor reimbursement for all expenses incurred.

Guaranteed maximum price contracts are agreements between the contractor and the customer to pay for the projects whose cost can be estimated quickly, and the actual amount does not deviate much from the projected amount. Customers compensate the contractor for the costs incurred directly or indirectly and the profit the contractor needs to get. The indirect overheads fees and profits are constant and should not surpass the threshold placed. In case the costs exceed the estimated threshold, the contractor takes the responsibilities and pays for them (Palihakkara & Perera p.5). Nevertheless, uncertainties are prone to these contracts because a slight change of orders from the customer may result in a different threshold amount. Therefore, both parties have to agree with the new threshold before the official modifications take place. Both parties must relay information and an affirmation on the effects of changes in all the costs involved.

Of the three contracts, fixed-price is the most common and most preferred. Many people and companies select this procurement contract type because the contractor receives payment during the signing of the contract; thus, no party extorts the others. Fixed-price contracts are fair to both parties because each identifies their roles and responsibilities towards completing the projects. The contractor guarantees their customer that the project completion will be timely. Contracts are essential when people enter into agreements because they lay the foundation for honouring the agreement between parties. All parties must be careful when joining the arrangements and should stick to their obligations to the end.

Works Cited

Haidar, Ali D. “Types of Construction Contracts.” Handbook of Contract Management in Construction (2021): 31-55. Web.

Flammer, Caroline. “Competing for government procurement contracts: The role of corporate social responsibility.”Strategic Management Journal 39.5 (2018): 1299-1324. Web.

Palihakkara, A. D., and B. A. K. S. Perera. “Identification of significant risk factors of guaranteed maximum price (GMP) contracts.” (2021). Web.