Category: Construction

Introduction

Background to the Research

Engineering, procurement and construction management, often referred to as EPCM, is a concept that is becoming increasingly popular in the construction industry. When undertaking major construction projects, companies and government entities are often keen to ensure that they are completed within the stipulated budget and timeframe. However, Ward (2018) observes that most of these projects often take longer than the set timeline and the cost often exceeds the initially planned budget. Whenever the cost and period of completion fail to meet the initial plan, cases of lost opportunities often arise. The project owner will lose the benefits that were to be received from the completed project within a given period. It means that beneficiaries of the project would have to wait longer before they can start enjoying the benefits. In some cases, the project owner may not have additional funds to support the inflated cost of completing the project, especially in cases where the adjusted cost significantly varies from the initial one.

The delays and cost inflation are often arising because of various issues. Turner (2017) explains that most contractors would be quick to shift the blame when these undesirable events occur. One of the common issues that often arise is the delay in completing the design. When a contractor has to wait for another company to develop the design, it is possible that they may be forced to start the project late when the other party takes long to deliver the design. Another common complaint is a poorly coordinated procurement system (Mosey, 2019). It is essential to ensure that all the materials needed for construction are delivered at the right time and in the stated quantities. When another company is contracted to facilitate the delivery of materials, the contractor can easily shift the blame to the logistics company. Issues such as the time it takes to get the approval from relevant government authorities may also be blamed for delays in project and potential inflation of the overall cost.

The concept of engineering procurement and construction management emerged as a way of eliminating problems of inflation of project cost and the inability to complete the project within the set period. According to O’Neil (2019), in EPCM, a contractor is fully responsible for the supervisory role of all activities to ensure that they can have a proper plan on how to complete it within schedule and initial budget. The contractor will be responsible for assessing the design, procurement activities, the actual construction, commissioning and the handover to the owner or operator when the system is ready for operation to ensure that it is in line with the expectation of the client (Low, 2018). The primary goal of EPCM strategy is to ensure that all activities in the project are completed as per the expectations of the owner and within the right time. The EPCM unit has to ensure that the contractor has to develop an accurate cost of undertaking the project and estimate the duration within which the project will be completed. An important condition often attached to EPC-project is that the contractor will be liable for the delays and possible inflation of cost, unless there is a proper justification. The strategy makes contractors more responsible and committed to the project because they understand possible consequences of their inefficiency.

The role of EPCM is to supervise, coordinate, and manage construction activities in a project. Chow et al. (2017) argue that the concept of EPCM has gained massive popularity with the growth of EPC-projects. As large companies and government agencies embrace the concept of EPC, it has become necessary to have some form of moderation that will help in protecting the interest of project owner. The goal is to eliminate cases where EPC projects are completed without taking theinterests of the ownerinto full consideration.It is possible to have cases where the design fails to meet the exact needs of the owner. Sometimes the design may be correct but the implementation may not meet the expected standards (Challender, Farrell and McDermott, 2019). Project owner may not have the opportunity to identify these weaknesses in time for proper correction before the project is completed. EPCM helps in addressing such challenges. It eliminates cases where the contractor is also its own supervisor. Engineering, procurement, and construction management is the moderator that ensures that the EPC contractor completes the project without any interference from the owner. However, the contractor has to deliver the expected result at every stage of the project.

Problem Statement

The construction industry plays a pivotal role in the overall development of a country. Heldman (2018) explains that rapidly developing cities such as Hong Kong, Shanghai, Beijing and Shenzhen have been supported by a robust construction industry. The same trend has also been witnessed in the rest of the world, especially in rapidly expanding economies. Traditionally, the common practice was that an architectural company would do the design, hand it over to the contractor to implement it and have a procurement company to deliver the needed materials. The main problem with this strategy was that success of one company engaged in the project depended on the success of the other companies involved. Any mistake by one stakeholder would affect the others involved.

The problem has often been blamed for delays and cost inflation in major projects. In an effort to eliminate such problems, a trend is emerging where government entities and companies are handing over all the activities involved in the project to one company. As Oakland and Marosszeky (2017) observe, it is unfair to blame one company for mistakes done by others. Moreover, shifting of blames often makes it difficult to identify the party that is fully responsible for delays or inflation of cost. When the entire project activities are assigned to one company, they have to be fully responsible for the success of the process. They will have the liberty to plan every stage of the project without being delayed by other entities.

EPCM seeks to address the challenge that is often associated with projects purely conducted under the EPC approach. In EPC, a contractor is expected to be responsible for all the activities, from design, procurement, construction, and hand-over to the client (Benetto, Gericke and Guiton, 2018). In most of the cases, they are expected to supervise themselves and the owner will only need to wait for the completed construction. The problem with this approach is that the owner is fully alienated from the entire process and cannot have the opportunity to recommend changes when the project is in progress. Sometimes when a wrong design is not changed early enough, the owner may be forced to stay with something that fails to meet their expectations (Dachyar and Sanjiwo, 2018). As such, EPCM focuses on addressing such challenges. When the project has been handed over to the contractor, EPCM team has the responsibility of ensuring that interests of the project owner are fully taken care of in the entire lifetime of the project.

They will start by inspecting the design to ensure that it meets the desire of the project owner in terms of physical appearances (cosmetics) and functionality. The next step is to supervise the approach that the contractor takes in procuring materials needed for construction. Akkucuk (2019) explains that there is always the fear that a contractor may try to cut costs by using cheap substandard products. The problem is that sometimes the owner may not realize that materials used are substandard. Compromising the quality for improved profits is a dangerous but common practice among contractors. It is essential to ensure that such practices are discouraged because that can have devastating consequences to the owner. The EPCM team has the responsibility of ensuring that such practices are discouraged as much as possible.

Purpose of the Study

The construction sector continues to play a crucial role in defining the overall development of a city in the modern society. Some of these projects are costly, which makes it necessary to ensure that there is efficiency in their execution (March, 2017). Companies and governments around the world are keen on ensuring that their projects are completed at the right time and within the set budget. EPC is a concept that many believe can help in managing problems of delays and cost inflation. It gives the contractor the independence to plan and execute all the activities without having to rely on any other entity. As the concept of EPC-projects continue to gain popularity, it is also becoming increasingly important to ensure that interests of project owners are not ignored. The fact that EPC gives a contractor freedom and full responsibility for the project creates a new challenge. The possibility that the project can be completed without taking the interests and desires of the owner into full consideration is high (Ganbat et al., 2019). EPCM comes in to address such challenges by maintaining regular supervision, coordination, and management of the activities.

The primary aim of this study is to analyse factors that impact international engineering, procurement and construction management. Although studies have shown that using EPC helps in eliminating various challenges associated with delays and costs, implementing it often faces some issues that may have a significant impact on the overall outcome. The study will analyse how these factors may have positive or negative effect on the implementation of EPC-projects. The researcher will collect data from both primary and secondary sources to help explain how EPCM can enhance success in EPC-projects. The role of EPCM will be discussed in details, including factors that have promoted its popularity over the recent past. Through this study, one will understand why it is important for an organization to embrace this concept, especially when the project owner has no time of technical capacity to monitor the progress that the contractor makes in the project.

Research Questions

Project management is a widely researched topic because of its relevance in the modern society. However, the concepts of EPC and EPCM are relatively new. They have gained massive popularity over the recent past because of their relevance, especially in undertaking large and complex projects. When conducting a research project, Kim (2017) argues that it is advisable to develop questions that would help in guiding the process of collecting and analysing data based on the goal of the study. To help analyse factors that impact international engineering, procurement and construction management, the following questions were developed:

1. What are some of the factors that have promoted the popularity of EPCM in the international community?
2. What are the factors that affect international engineering, procurement and construction management?
3. How can the negative factors be eliminated or managed to enhance success of EPC-projects?
4. What is the future of EPCM and EPC in the global construction industry?

Dissertation Structure

This dissertation is divided into five main chapters. Chapter 1 provides detailed background information about the topic. The significance of the study is explained to justify why it is worth investigating. The chapter also outlines research questions that guided the process of collecting and analysing data. Chapter 2 is a review of the literature. The researcher outlines and discusses findings that other scholars have made on this topic. As Devi (2017) observes, reviewing literature is critical because it offers a researcher the opportunity to identify research gaps and possibly conflicting findings in the current body of knowledge. The third chapter discusses the methodology of the study. It explains how data was collected, challenges that the researcher faced, the process used for the analysis and ethical considerations observed. Chapter 4 provides a detailed presentation of the findings made from the analysis of primary data. It also discusses these findings in line with the information obtained from secondary sources.

Literature Review

The previous chapter provided background information and a justification for the study. This chapter will focus on reviewing literature relating to this topic. According to Aigbavboa and Thwala (2020), the goal of every researcher is to provide new knowledge based on the already existing information to help build a given field of study. Duplicating an already existing information may not help in providing new knowledge. As such, through literature review, it is possible to understand what other scholars have found out a build upon it by conducting primary data collection and analysis.

Understanding the Concept of Engineering, Procurement, and Construction Management

It is important to start by understanding the concept of engineering, procurement, and construction management before determining its relevance and factors that influence it. According to Shen et al. (2017), engineering, procurement, and construction management (EPCM) is related and closely intertwined with construction, procurement, and construction (EPC) but they do not have the same meaning. At this stage, it is important to define each in order to understand their relevance and how they relate to project management. In EPC projects, a contractor is assigned all the responsibilities, from commencement activities to completion and final handover. Wassenaer (2017, p. 56) explains that “the owner or principal of the EPC project provides the EPC contractor with a detailed design including technical and functional specifications, in order for the EPC contractor to build and deliver the project to the turn of the key, within a specified time period.”

Once the owner has handed over the design and both parties agree on cost and the period within which the project should be completed, all activities are handed over to the contractor. The owner will have no role to play for the entire time that the project will be in progress. The contractor will be responsible for all supervising itself without any interference from the owner (Nguyen and Hadikusumo, 2017). Any risks or shortfalls that may emerge, which may have the effect of inflating the cost must be addressed by the contractor. The company assigned the contract is not expected to go back to the owner for any additional funding.

The main goal of undertaking a project under the concept of EPC is to eliminate delays and unnecessary inflation of costs. According to Heldman (2018), government agencies and non-governmental corporations are often forced to pay more than what was originally budgeted for when undertaking megaprojects. Cases of delays are also common in such large projects. The problem is that parties involved often pass the blame to others, making it difficult to know who is responsible for cost inflation or the delay. To address such challenges, EPC emphasizes the need to assign all tasks to one company (Sholeh and Fauziyah, 2018). The contractor will be responsible for developing the design as per the demands of the owner, source for materials needed for construction, and undertake construction activities within the predetermined budget and time. Any delays in the project would warrant a fine because of the lost opportunity of using the completed structure within the desired time. Similarly, any increase in cost has to be met by the contractor. The idea is not to punish contractors, as Wassenaer (2017) observes. It is meant to make them more responsible. The contractor will do everything within their powers to avoid any delays in every stage of the implementation. They will also avoid misuse of materials or generation of unnecessary wastes because they know they will be held responsible for an increase in cost of construction.

Engineering, procurement, and construction management focuses on the supervision and coordination of activities in a project on behalf of the owner. Heldman (2018, p. 45) observes that “the EPCM contractor is not directly involved in the building and construction of the project, but is rather responsible for the detailed design and overall management of the project, on behalf of the owner or principal.” When a company or a government agency decides to hand over all activities to a contractor, it is often advisable to have some form of supervision. The EPCM contractor plays that crucial role of a supervisor. As a professional entity, the EPCM contractor will start by assessing the design developed by the contractor and comparing it with what the owner requirements. The construction plan must meet expectations of the owner both in terms of functionality and physical appearance (Dachyar and Sanjiwo, 2018). The plan must be realistic in terms of the time of completion, the budget, and the expected outcome.

When the design is approved, the EPCM contractor will start its most important responsibility of supervising the project. The primary goal of the EPC contractor is to complete the project within the deadline using the least amount of resources possible to maximize their profits by lowering costs. The problem is that they may be tempted to use substandard products as long as they are assured that the owner of the project will not know that they did so. It is the responsibility of the EPCM contractor to ensure that such unethical practices are eliminated in the project development. They have to ensure that all activities in the project are completed as per the initial design without following any shortcuts (Nguyen and Hadikusumo, 2017). The EPCM contractor acts in the interest of the owner of the project without unduly interfering with the work of the EPC contractor. As long as the construction works are going on as per the initial plan and without compromising on the quality, the EPCM contractor is not expected to interfere with the work. Wassenaer (2017) also notes that it is not the business of the EPCM contractor to question how funds are spent in the project as long as the initial budget was approved and is within the market forces. The EPC contractor will bear any extra costs in case it becomes apparent that additional funds will be needed to complete the project.

Role of EPCM in Project Management

The difference between EPCM and EPC contractors has been defined in clear terms in the section above. One can easily understand the role of each contractor in a given project. Defining the difference was essential to avoid confusing the two. At this stage, it is important to define specific roles of engineering, procurement, and construction management in a given project. Discussed below are the specific roles that an EPCM contractor is expected to undertake effectively in a given project irrespective of its size.

Supervision

One of the fundamental responsibilities of an EPCM contractor is to supervise the EPC contractor or a team of contractors assigned the role of undertaking a project. According to Dachyar and Sanjiwo (2018), the primary reason that makes a company or a government institution assign a given project to an independent company is lack of capacity to do it. The party that is assigned the project must have the specialized skill needed to complete all the tasks successfully. The project owner may not have the technical capacity to supervise the work of the contractor. As such, the contractor may take advantage of the ignorance of the project owner and use substandard procedures and products to achieve a specific goal of lowering cost. The consequences of such practices may be dire. As such, the owner should assign the role of supervision to another entity that has an equal capacity to assess the entire process of construction to ensure that integrity is upheld. As the supervisor, the EPCM contractor is not expected to issue instructions to the EPC contractor unless it is noticed that something is not done correctly. Whenever an issue is identified, the message should be passed to the project manager of the EPC contractor without necessarily contacting the project owner. Wassenaer (2017) argues that the owner may only be contacted when the issue is escalating.

Coordination

In project management, the EPCM contractor plays a critical role of coordinating activities in a project. Once an EPC contractor is handed the responsibility of undertaking a project, there is always an assumption that the interest of the owner will be conflicting to that of the contractor. The owner of the project will want it completed within the shortest time possible using the predetermined budget and to the expected standards (Nguyen and Hadikusumo, 2017). On the other hand, the contractor will always desire to have a reasonable extension of the deadline and upward adjustment of the budget when it is necessary. Every time a contractor may ask for a deadline extension or budget adjustment in extreme cases, the owner may be justified to be suspicious of such requests. The EPCM contractor will play a critical role in addressing such suspicion. They are expected to assess forces that the contractor faces when undertaking the project and whether it is justified for them to be granted any form of extension. When it is established that forces beyond the control of the contractor caused the delay, the EPCM contractor can find a way of convincing the owner to grant a deadline extension.

Some projects may be conducted by two or more companies because of their massive size, complexity, or both. Burj Khalifa in Dubai and the expansion of Heathrow International Airport in London are some of the examples of projects that required different companies to exercise various responsibilities. Heldman (2018) observes that in cases where two or more companies have to undertake a single megaproject as one team, the EPCM contractor will play an important role in coordinating their activities. The contractor will ensure that there is effective communication among all the stakeholders involved. Each team must understand the role they have to play and the responsibility that they have to other parties involved in the project. There must be a smooth transition of tasks from one team to the other without delays or miscommunications. The EPCM contractor must also ensure that team in the project has access to materials they need to deliver on their promise within the right time. When conflicts arise, which is a common occurrence when various companies have to work on a project the contractor has the responsibility of addressing them in a timely manner to ensure that any negative effect is eliminated.

Management

The EPCM contractor may also be responsibile for managing activities in a given project. As explained above, one of the primary differences between EPC contractor and EPCM contractor is that the former takes all the responsibilities in a project from design to construction and the final handover, while the latter is expected to represent the project owner by supervising the activities of the primary contractor to ensure that everything is done as per the expectations. The EPCM contractor is not expected to be involved directly in the actual activities of the project (Dachyar and Sanjiwo, 2018). In some unique cases, this contractor may be required to act as a manager in a given project. Such instances occur when the project owner has not handed over all the tasks to one company under the EPC contract. It means that the owner will still have the right and responsibility of managing activities in the project. The project owner will hand over this management role to the EPCM contractor.

The contractor will be required to develop policies that all the other parties in the project have to follow. The management role goes beyond supervision and coordination tasks. In this case, the contractor will have the power to demand changes in the approach that contractors take in the project if there is a feeling that their approach fails to meet expectations (Nguyen and Hadikusumo, 2017). As the manager of the entire project, the EPCM manager will be responsible for any mistakes that may occur in the project, including delays and inflation of cost. It means that the manager must be keen on eliminating any delays, waste production, and unnecessary mistakes that may have a negative impact on the overall success of the project.

Factions That Have Popularized International Engineering, Procurement, and Construction Management

EPCM has gained massive popularity over the recent past, especially when undertaking megaprojects for government entities and private organizations. According to Mami (2019), one of the factors that have made EPCM popular is that it makes it possible to achieve success in a given project within a shorter period than when a contractor is allowed to operate without any form of supervision. The specialized supervision also makes it possible to achieve success in the project as per the highest standards possible because compromises will be eliminated. Everything will be implemented as per the plan (Dachyar and Sanjiwo, 2018). This approach of managing projects also lowers the overall cost of the project while at the same time ensuring that those who are assigned specific responsibilities meet the required specifications. The following are specific benefits of EPCM that has made it popular around the world, especially in developed countries.

Engineering Design

One of the reasons why EPCM has gained massive popularity is that it facilitates an effective development of engineering designs. The EPC contractor may be assigned the role of developing the design based on the desires of a client. The EPCM contractor will ensure that the design developed meets the specification of the client. In some cases, the two contractors would work together to develop the required design. They have to visit the construction site, assess challenges that may be encountered, then agree on a construction plan that meets the functional requirements as well as safety concerns and the beauty that the client desires. They have to agree on quality controls that will have to be observed in the project. Wassenaer (2017) explains that in some instances, the EPCM contractor may be assigned the role of developing the engineering design. It becomes easier for that contractor to supervise a project that is undertaken using a design that it developed. It will ensure that the contractor follows the guideline provided with utmost accuracy without any compromise.

Manufacturing Consultancy

A project may involve manufacturing activities. Currently, the global community is grappling with the problem of COVID-19 pandemic. Both private and public companies are now manufacturing personal protective equipment (PPEs), ventilators, testing kits and reagents, medicine, and other products needed to combat the pandemic. Most of these companies were not producing these items before, but as a need arose and a gap emerged in the market, they acted promptly to meet the demand. These companies may assign the role of manufacturing to third parties known to have the needed special skills. It may also develop internal capacity to undertake these activities without outsourcing. In such a case, it will require another company to provide consultancy services to ensure that the manufacturing process is a success. As a consultant, the EPCM contractor will guide the employees of the client through steps that they need to take in their respective roles. The initial stages of consultancy may be demanding as the employees will have to be taken through rigorous training (Mami, 2019). As they master the required skills, the role of the consultant will be reduced to that of supervision. The contractor will need to look at how efficient employees and different units within the construction department are in undertaking their duties. Weaknesses should be identified and properly addressed to achieve the desired goal.

Procurement

Having access to materials needed for construction is often one of the challenges that project managers face. According to Heldman (2018), when a contractor has received an approved plan for a given project, it is their responsibility to ensure that the implementation is done within the time made available and to the best standards possible. It is always important to ensure that they have access to materials they need to undertake specific roles. Challenges often emerge when materials fail to reach at the right time. Dachyar and Sanjiwo (2018) note that such a problem may arise because of several factors. One of the main reasons why such delays occur is poor communication between the contractor and the procurement office. When information about specific items needed for the project fails to reach the project manager, then delays may be common. In some cases, a wrong item may be delivered, which means that it has to be returned so that the right one can be brought.

Delays may also occur because of sporadic changes in the cost of an item that is needed in the construction. It is almost impossible to have an accurate prediction of inflation within the lifetime of a project, especially those that may take years to be completed (Mami, 2019). When such eventuality occurs, it may be necessary for the parties concerned to agree on how to address the issue. Such consultations may cause delays in the delivery of the needed resources. Wassenaer (2017) notes that EPCM helps in managing such delays to ensure that they do not affect the overall success of the project. The EPCM contractor is expected to advise the EPC contractor on the amount of materials that should be purchased to avoid delays but in a way that does not inflate the overall cost of warehousing. The contractor may also provide necessary advice on specific items that may need to be purchased in large quantities because of their rarity in the market or volatility of their prices. They are also expected to maintain a close relationship with certain suppliers to ensure that needed products are made available at the right time and cost.

Construction

International engineering, procurement, and construction management has gained popularity because of the crucial role that it plays in the actual process of construction. Most of the delays and mistakes occur during the construction phase. Wassenaer (2017) explains that this is the most important phase where accuracy and commitment of all stakeholders are expected. The problem is that it is the stage where the project manager may lack the capacity to conduct proper supervision because of its complex nature. One may not know whether the contractor is following the right procedure or using the right materials to achieve the desired goals. It is at this point that the project owner will require a professional to undertake the important role of supervision. The EPCM contractor will not be responsible for the specific construction activities (Mami, 2019). However, they will monitor every activity undertaken by the EPC contractor or individual contractors involved in the project.

The EPCM contractor must maintain close communication with both the contractor involved in the development of the project and the owner. Challenges may arise in the project because of the various issues discussed above. The EPCM and EPC contractor can discuss how the challenge can be managed to ensure that the success of the project is not compromised (Dachyar and Sanjiwo, 2018). The EPCM contractor will be acting as a consultant to the EPC contractor, helping to find the best way of solving the problem. However, it should not amount to interference in the project. The EPCM contractor will also need to make regular reports to the project owner about the progress that is made. The complex processes should be reported in a basic manner to ensure that the owner can understand events going on at the construction phase of the project. In case there is a need for a change in design because of a new event that had not been envisioned at the planning stage, the EPCM contractor is in the best position to link the contractor and the project owner.

Factors that Impact International EPC Management

International engineering, procurement and construction (EPC) management is gaining popularity not only in the developed but also the developing economies around the world. Pereraet al. (2017) argue that the need for efficiency is pushing companies and government entities to employ strategies that will lower the cost and enhance the speed of undertaking individual projects. The pressure to deliver gets even greater when handling megaprojects worth billions of dollars. The desire to eliminate cost inflation and unnecessary delays push companies to employ unique strategies. Engineering, procurement and construction are one such initiative that is proving to be effective. EPC involves assigning all tasks within a project to a single company. The project owner only needs to explain to the contractor what they need to be done. The contractor will be responsible for conducting the initial survey, developing the design, which the owner will then have to approve. The contractor will then estimate the cost of the project, undertake all the procurement activities, conduct the construction and complete the project, before handing it over to the owner or operator for commissioning.

The concept eliminates cases where a project involves different autonomous or semi-autonomous entities that have to work as a unit to achieve a common goal. Adeyekun (2019) explains that this strategy eliminates one of the most common challenges in project implementation, which is blame-shifting. When delays occur or when costs go beyond the initial plan, it is always easy for one company to blame the other for having developed a wrong design, having changed the designs, having delivered the design past the stated time, or issues with sourcing for materials needed for the construction. When all these activities are assigned to one company, these complaints will be eliminated. The company will have to come up with a careful plan on how to complete the project within the expectation of the owner. In case a delay arises in completing one task, the contractor will have to find ways of compensating for it to avoid fines that are always attached to such mistakes. Despite its appropriateness in enhancing the success of megaprojects, EPC faces some issues that may affect its appropriate implementation. The following are some of the major factors that may affect international engineering, procurement and construction management.

Organizational Culture

Organizational culture defines how a given entity approaches a given task and how employees relate with one another. According to Pryke (2017), for a long time, large projects in a company or a given government department would be assigned to a given unit. For instance, in Hong Kong, Highways Department was responsible for the construction of roads. It had to employ workers and purchase relevant equipment to undertake such responsibilities. There was a major shift from this approach when it became apparent that the government could enhance efficiency in road construction by using contractors instead of having a team responsible for these tasks. This trend gained massive popularity and it is still in practice today. In most of the cases, the government would hire an independent architectural company to help with the design, quantity surveyor to help with estimation of cost and a contractor to undertake the actual construction of the road. The primary change that EPC introduces is that all these tasks in such a project are to be done by one company instead of sourcing from different companies.

The culture that had been created was that one company would primarily focus on one aspect of the project in which it has the needed specialisation. The architect would develop the design and hand it over to the next firm to undertake the next task of implementing it. It will be necessary to revolutionise this approach of thinking by reminding stakeholders that these tasks can be done by one company (Towey, 2017). One of the ways of changing this culture is to promote mergers and takeovers of firms in different fields. Currently, most of the large companies in the construction sector focus on specific areas such as designs, construction, electrification, plumbing and such other related areas. If the current trend is not changed, it may have a negative impact on the effective implementation of EPC projects.

Finding a company that is capable of handling all the activities in a project may be difficult. Having a merger of different companies in different fields may also be challenging when the affected companies have conflicting interests. In such cases, Pittard and Sell (2016) believe that it may be advisable for large companies to introduce the missing departments to enhance their capacity to undertake EPC projects. A construction company can introduce new departments of design, procurement, plumbing and electrification among others. Stakeholders in this sector of construction have to embrace the new trend where megaprojects have to be assigned to single entities. The best way of embracing these changes is to redefine their culture and improve their capacity based on the new requirements.

Project Team and Performance Management Approach

Project teams also have a direct impact on international engineering, procurement and construction management. According to Ward (2018), implementing megaprojects requires close coordination of different teams and the efficiency of every member of the team. When a megaproject has to be completed by a single company, different departments will work as units or teams with a specific role. The architectural department will have the role of developing an appropriate design for the project. The civil engineering and construction unit will have the responsibility of implementing the design. The plumbing department, the electrical unit andthe procurement unit will also have their roles. The most important factor that parties have to consider and which directly affects the success of EPC is the effectiveness of each team in undertaking the assigned roles and how well activities are coordinated. Turner (2017) observes that success can be realised by maintaining a constant and effective communication among different teams involved in the project.

The plumbing and electrical departments will be required to undertake their duties at different stages of the construction. As such, there is a need to have constant communication with the construction department so that they know when they are required at the site. The construction department will also need to be informed of the assistance that each of these teams will need and the time they are likely to take in undertaking a given task. The top management unit should ensure that there is smooth cooperation among all the team members as they focus on achieving the primary goal of completing the project within the right time and at the predetermined cost.

The performance management approach that is embraced will also have a direct impact on the implementation of EPC projects. Gevorkian (2017) explains that the reason why corporations and government entities are moving away from the traditional project management approach to EPC is the difficulty in managing the performance of individual companies as they often shift the blame. EPC hands over all the responsibility to an individual company to ensure that there are no blame games. It is the responsibility of the top management unit of the firm to ensure that there is a proper mechanism of managing the performance of teams and individual employees in each team. Once a task is assigned to a given department, such as designing the plan for a construction project, the top management will be keen to manage the performance of the architectural department assigned the role. On the other hand, the head of this department will have to manage the performance of every employee to ensure that they deliver on their promise.

The fact that under EPC a firm can be fined for a delay of inflation of cost, performance management is a factor that cannot be taken for granted. However, Mosey (2019) warns that it should not involve oppressive policies that employees may consider punitive. Instead, it should involve effective coordination of activities, providing assistance to individual workers where necessary, assigning tasks based on one’s skills and experience, availing all resources whenever it is necessary and maintaining an effective communication system so that mistakes can be identified and corrected in the earliest stage possible. The performance of individual departments should also be managed by facilitating them so that they can perform optimally instead of just using punitive measures to discourage underperformance. O’Neil (2019) advises that when every resource has been provided, it may be necessary to remind departmental heads and individual employees that wilful mistakes may have to be punished. They need to understand that their performance will have a direct impact on the earnings of their company and its ability to secure similar contracts in the future.

External Risks and Incentives

International engineering, procurement and construction management can also be affected by external risks and incentives. According to Kim (2017), when managing megaprojects, one must understand the numerous external risks that may affect the overall implementation process. One such risk is the varying laws and regulations that exist in the international community. A Chinese firm with its headquarters in Hong Kong may find laws and regulations in the United States or the United Kingdom significantly different from that in the home country. As Low (2018) suggests, such a firm has to adjust its operations to ensure that it observes laws and regulations of the host country. For instance, in the United States, the government has different departments that have to approve a construction project before it can be initiated. Sometimes the approval of the project may take longer than expected, making it difficult to complete the project within the schedule. Delays may also be caused by regular supervision of the construction sites by different agencies to ensure that the project is complying with the set rules and regulations. Such events may slow the rate of implementing various project activities. However, a company implementing an EPC project has to ensure that it observes rules and regulations set in each country. Before starting a project, these laws have to be reviewed and their impact determined before discussing them with the project owner or sponsors.

Inflation is another major factor that can impact international engineering, procurement and construction management. In the construction industry, it is common to find cases where some materials have to be sourced from the international market. Some of these materials are fragile, such as windowpanes and cannot be sourced in advance and stored because they can easily break (March, 2017). There is also the problem of inflating the cost associated with warehousing large amounts of materials. In most of the cases, there would be no space that would sufficiently store construction materials within the site. As such, these materials have to be purchased periodically. It means that it is almost impossible to avoid inflation in a construction project, especially those that may take years to be completed.

When a company is assigned a project under EPC terms, they are expected to complete it within the stated time and budget. They have to deal with the problem of inflation. In many cases, the contractor would factor in the cost of inflation when estimating the cost. The problem is that having an accurate prediction of inflation may not be easy, especially when the project may take more than 5 years. These problems often make EPC less desirable to many contractors, especially when operating in a highly volatile market (Adeyekun, 2019). There is a constant fear that a firm may be forced to use its resources to complete the project to avoid these fines.

The concept is relatively new and many large corporations and government entities may avoid it for fear of compromised quality in service delivery. According to Pryke (2017), the popular practice in the construction sector is for the project owner or sponsor to source for different experts to work on different assignments. A good example was the construction of Burj Khalifa, the world’s tallest building. Skidmore, Owings and Merrill (SOM) from the United States were responsible for the design while Samsung C&T from South Korea was the main contractor in the project. Other companies were also assigned other roles such as interior design and security system in the building. The approach where the owner identifies specialists in a given aspect of the project has remained relatively popular (Towey, 2017). It creates the impression that every company involved in the project is specialised in a given field.

The owner also feels that they are in control of activities in the project. The new system of EPC takes away that power. The project owner is expected to hand over all the activities to the primary contractor. The role of the owner is therefore limited to that of a supervisor. It means that there must be a high level of trust between the contractor and the project owner. The latter must be convinced that the contractor has the capacity to undertake all the assigned responsibilities as expected. It is also necessary that the owner trusts the contractor to use the available resources prudently to achieve the set goals. On the other hand, the contractor also needs to trust the owner to provide all the required resources at the right time. Moreover, the contractor will expect the owner not to engage in activities that may affect the ability to complete project activities within the right time.

Competition is another external risk that may make EPC less attractive to contractors in the international market. Gevorkian (2017) explains that despite the possible challenges that EPC presents, it is a less stressful approach of implementing a project because the owner will have only one company to deal with in its supervision. The responsibility is transferred to the contractor. Many companies in the construction sector are rapidly evolving to ensure that they can work effectively under the new system. They have established the relevant departments that enable them to compete favourably in the international market (Pittard and Sell, 2016). The problem is that in a highly competitive market, many firms often consider using pricing as a way of edging out their rivals. Under pricing has devastating consequences on a contractor, especially when undertaking expensive projects. These factors may act as negative incentives that may discourage a company from embracing EPC projects.

Relationships with Stakeholders

The relationship that exists among different stakeholders can also affect the effective implementation of EPC. According to Ward (2018), a single firm can’t specialise in all the activities involved in the completion of a construction project. It is possible for a contractor to have departments of design, construction, plumbing and electrification. However, it will still need to work with a logistics company to facilitate the delivery of the needed materials, especially when they have to be sourced from the international market. The relationship that is maintained between the contractor and the organisations providing various services is crucial for the success of an EPC project. There should be an effective communication system to ensure that the needed items are delivered at the site within the right time.

The relationship that exists between the contractor and the project owner also matters a lot when implementing these projects. As mentioned above, there should be mutual trust among the entities to help ensure that the desired goals are achieved. Finance has to be released to the contractor so that materials can be purchased as required in different stages of the project. The government is another important stakeholder even when undertaking a private project. It is responsible for setting laws and regulations that the contractor must follow. It also approves the construction based on environmental impact assessment (EIA) and other policies that may exist (Mosey, 2019). The contractor has to follow the guidelines set by government agencies to maintain a positive relationship with contractors. A positive relationship with these stakeholders enhances success when undertaking an EPC project.

Effective and Timely Decision Making

Decision-making is central to the success of a project that is undertaken under the EPC approach. When different companies are involved in the project, there will always be a regular consultation among the contractors to ensure that everything is done as per the expectation. Mistakes of one party can easily be corrected by the other party. When only one company is responsible for the project, such oversight roles may be lost. The success of the project will rely solely on the ability of the management to make the right decision at every stage of the implementation (Ward, 2018). It must understand how to assign roles, the right supervisory approach that is needed, when and how to source for materials and how to store them.

Time is a major factor that has to be considered when making such decisions under EPC projects. O’Neil (2019) believes that it is advisable to make all the strategic decisions at the initial stages before the project is officially handed over to the company. It means that departmental heads will need to make operational decisions based on the strategic plan that had been initially developed. To avoid mistakes, it is essential to involve all stakeholders at different levels when making decisions. For instance, the supervisor should involve team members when they want to make a decision on the best approach they can use to complete specific tasks within the available time and resources. The project manager will need to consult departmental heads when planning to make a major change in the project design or implementation process. Sometimes it may be necessary to consult the owner from time to time when making decisions that may change the original design, time of completing the project, or the overall cost of the project.

Research Methods

The previous chapter provided a review of the literature on factors that impact international engineering, procurement and construction management. This chapter focuses on a detailed explanation of methods used to collect and analyse data that was used to inform the study. The researcher used both primary and secondary data to inform the study. Secondary data was obtained from books, journal articles and reliable online sources and it formed the basis of chapter 2 of this study. Primary data was obtained from a sample of respondents. Information obtained from primary sources helped in addressing the knowledge gap identified. Chapter four formed the basis of the analysis of primary data. This chapter discusses the research design used in this study, a sampling method and the sample size and the questionnaire design. Also discussed in the chapter are the process used to collect primary data, the analysis process, problems encountered and ethical considerations that had to be observed.

Research Design

Research design is one of the most important factors that one has to define when planning to collect data from a sample of respondents. Kumar (2019) explains that the research aim and questions often define the design that is most appropriate for the study. The design has to make it possible to achieve the aim and to respond effectively to research questions. As stated in chapter 1 of this dissertation, the aim of this study is to analyse factors that impact international engineering, procurement and construction management. The most appropriate design that can help in responding to the research question is qualitative research. According to Boubaker, Cumming and Nguyen (2018), qualitative research involves a detailed descriptive analysis of a phenomenon.

The design focuses on explaining why a phenomenon occurred, how it did and the impact that it had. One of the benefits of using this method is that it allows respondents to provide a detailed explanation of a phenomenon. Instead of simply using numbers, this design explains why events occurred in a given manner. Using open-ended questions, respondents are at liberty to use their own words to explain an issue. Unlike in structured questions that limit the response to given choices, open-ended questions in qualitative research give room for participants to explain their views. As such, it eliminates cases where one has to guess why a participant responded in a given manner.

Sampling and Sample Size

International engineering, procurement and construction management is a relatively new concept that is growing in popularity because of the desire to enhance efficiency in project management. This new concept has attracted the attention of many scholars and managers who are keen on enhancing the success of major projects, especially in terms of managing costs and ensuring that all activities are completed within the set timeline. Given the fact that the topic does not focus on general knowledge that can be answered by any employee, it was essential to use an effective sampling technique. As Mami (2019) advises, when a study focuses on a specialised issue, it is important to have a sample that has the right knowledge on the topic. As such, the most appropriate sampling technique was judgmental sampling. This non-probability sampling approach allows a researcher to consciously pick participants based on a set of inclusion/exclusion criteria. Only those who met the set criteria are included in the study. In this study, all the respondents had to be senior or mid-managers at specific organisations that have already used EPC to implement specific projects. The researcher also considered experts in project management as qualified respondents who could provide the needed information in the project.

The sample size had to be set in line with the nature of the study. According to Politano, Walton and Parrish (2018), it is important to have a sample size that is manageable given the condition that one faces in the study. When the sample size is too large, it may be challenging to collect and analyse data from everyone within the time available for investigation. On the other hand, having a small sample size may affect the generalizability of the outcome because it may not be an effective representation of the entire population. The researcher settled on a sample of 20 participants. The sample size was chosen based on the challenges that existed when collecting the data. Finding respondents who meet the inclusion criteria was an issue given the limited movement and physical interaction that is encouraged as a way of managing the COVID-19 pandemic. The sample size chosen was adequate to facilitate the generalisation of the findings to the entire population. It was possible to collect data from them within the time that was available for the study.

Questionnaire Design

When collecting data from a sample of respondents, standardisation of questions is essential to ensure that information gathered can be analysed in a given way. A questionnaire provides a perfect way of standardising questions posted to all participants. Pettey. Bracken and Pask (2017) explain that this instrument of data collection helps in providing a clear pattern of asking questions to the participants in a given study. The questionnaire used in this study had three sections. The first section of the instrument focused on the residence of the respondents, age and academic background. Devi (2017) explains that it is always prudent to capture the academic qualifications of respondents to determine the authority that they have to respond to a given question. A highly educated person is likely to provide authoritative information based on facts instead of emotions and rumours.

The second section of the document focused on the experience of the participants in the field of project management. It was essential to have respondents who are adequately experienced in the field to help collect data based on real encounters instead of relying on information from secondary sources. The last section of the paper focused on specific issues relating to factors that impact international engineering, procurement and construction management. This section of the paper used open-ended questions, in line with the research design selected above. There was a proper guide for each question to ensure that respondents understood the information needed from them.

Data Collection

The next step after developing the questionnaire was the actual collection of data from respondents. The initial plan was to collect data through face-to-face interviews. Politano, Walton and Parrish (2018) argue that this approach of collecting primary data is the most effective, especially when conducting qualitative research. The interviewer can ask the respondent to clarify an issue based on their answer to a specific question. It also increases the response rate because of physical interaction. Unfortunately, the current global pandemic made it impossible to use this method to collect data. The researcher had to use an online survey because it is the safest and the only one possible as the government discourages physical interactions as much as possible.

After getting permission from the selected institutions, the researcher identified participants who qualified for the study. Each of them was contacted through their telephone numbers of social media addresses. They were informed about the study and the role that had to play. For those who agreed to take part in the investigation, questionnaires were sent to them. They were given two weeks to respond to the research questions and e-mail the document back to the researcher. To enhance the response rate, the researcher maintained regular communication with these respondents. All the questions and concerns that they had were adequately addressed.

Data Analysis

The final stage was to analyse and present the primary data collected from the participants. The approach of analysing primary data has to be in line with the chosen research design (Napitupulu, Fenty and Kisno, 2019). In this study, qualitative research was considered the most appropriate design that would facilitate an effective response to the research questions posed in chapter 1 of this document. Every respondent provided a detailed explanation of every question that was posed to them. The researcher analysed these responses to understand factors that impact international engineering, procurement and construction management. Whenever necessary, the researcher provided direct quotes as stated by various participants. These explanations provided a proper understanding of factors that affect EPC in modern organisations, both in the public and private sectors. The analysis focused on identifying themes as presented in the discussion of the respondents. Kumar (2019) emphasises the need to identify themes when conducting a qualitative analysis. They help in presenting a systematic analysis of an issue under investigation.

Problems Encountered

When conducting research project, it is always advisable to explain limitations that may affect the overall success of the study. The biggest challenge that was encountered was the inability to meet participants physically to conduct face-to-face interviews. It was desirable to interview the sampled respondents. However, the current COVID-19 pandemic made it impossible to have such meetings. The containment measures set by the government limits unnecessary movements and physical interactions. As such, the researcher had to observe physical distancing requirement. Another major challenge was the withdrawal of some of the participants. The fact that the researcher could not meet them meant that it was not easy to make follow-ups beyond the social media platforms and phone calls. Every respondent who withdrew from the study had to be replaced by another one. It is also important to note that the school and the local library are currently not accessible because of the scare of the corona virus. As such, the researcher had to rely on online databases to have access to the materials needed for the study.

Ethical Considerations

It is the responsibility of a researcher to understand and observe ethical considerations in academic research. Mami (2019) explains that one of the essential ethical considerations that one has to observe is the need to protect participants’ identity. When interviewing a group of people, differences in opinion may emerge. The problem is that a section may be victimised or even attacked because their opinion is different from that of the majority of those who are in authority (Kumar, 2019). To protect all participants from such intolerance, the researcher assigned participants codes instead of using their real name. This measure is meant to limit their ability of others to trace the respondents. The researcher needed to interview participants from local corporations who have implemented projects under the EPC concept.

It was ethical to ensure that the management of these companies is informed and their consent received before contacting their employees. The researcher also explained to every participant the relevance of the study, the role that they had to play and reasons why they were selected to take part in the data collection process. Only those who agreed to take part in the study were included as participants. As academic research, it was essential to avoid all forms of plagiarism as required by the school. Information obtained from secondary sources was adequately referenced using Harvard style and a list of all the sources provided. It was also an ethical requirement to ensure that the project is completed within the time set by the school.

Data Analysis

The previous chapter explained the method that was used to collect and analyse data collected from sampled respondents. In this chapter, the focus is to analyse findings made from the participants. As explained in the section above, the researcher considered it appropriate to use qualitative methods to analyse factors that impact international engineering, procurement and construction management. This approach was considered effective in providing a detailed analysis of the issue under investigation. The respondents helped in answering questions set in chapter one of this dissertation.

What are some of the factors that have promoted the popularity of EPCM in the international community?

The first question of the study focused on identifying specific factors that have promoted the popularity of the concept of EPCM in project management in the international community. Respondents were asked this question and advised to provide explanations based on their personal experiences and knowledge. The analysis shows that respondents had various views on this issue. One of the respondents explained as follows:

Participant 3 said, “The need to promote efficiency in megaprojects has forced government entities and private companies to embrace EPC-projects and EPCM. The strategy helps in enhancing a timely delivery of projects and proper supervision of activities.”

It is important to note that this respondent felt that EPCM and EPC are closely intertwined concepts that both help in the successful completion of projects. The view of this participant was also shared by others who noted that when the entire project is assigned to an individual contractor, efficiency is improved. The contractor can plan on how to execute the project without having to rely on other entities. The management of the contracted company understands that they have to deliver on all the activities within the right time based on the assigned resources. These respondents felt that when a project is conducted in phases by different companies, efficiency is compromised. The time that it takes for one company to explain what has been done and how to proceed to the next stage during the handover may lead to delays. When the project is handed over to an individual contractor, such delays are eliminated. However, there is still a need to ensure that the consultant is supervised to ensure that they deliver on their promise. EPCM helps in ensuring that the contractor is appropriately supervised so that they can work within the expectation of the project owner.

Participant 2 explained, “EPC is gaining rapid popularity because the responsibility of completed all activities is assigned to a single firm. Blame games are eliminated in that process. On the other hand, EPCM creates a platform where the contractor and the project manager can maintain constant communication in the entire lifetime of the project”

Studies have indicated that in cases where a project is undertaken by numerous companies, trading of blames becomes common. One contractor is quick to blame another because of a given failure. A mistake or a delay caused by one company will be worsened by the next because they always have an excuse. By assigning the entire project to a single company, such excuses are eliminated. When a delay arises in completing a given task in the project, the team has to find ways of compensating for the lost time when undertaking the next project. They know that they cannot accuse any other entity of delays because they are responsible for all activities in the project.

When undertaking such projects, the project owner needs to communicate regularly with the contractor. EPCM makes it possible to maintain such communication between these two stakeholders. Sometimes the information from the contractor may be technical. It is the responsibility of the EPCM contractor to make the message easily understandable to the project owner. This respondent felt that the success of megaprojects is highly reliant on the communication between the client and the contractor. The EPCM contractor may sometimes be required to address misunderstandings that may emerge between the two parties, especially if it is necessary to extend the deadline for the project.

Participant 18 said, “Many corporations and government entities are embracing EPC because of the need to eliminate cases of cost inflation. Sometimes costs are inflated because of mistakes committed by contractors. EPCM contractor helps in ensuring that whenever it is justified to adjust the budget, a proper reason for the change is provided”

Using EPC helps in managing the problem of cost inflation when undertaking megaprojects. According to O’Neil (2019), one of the main reasons why the cost of projects are often inflated is unnecessary delays. Whenever a project is not completed within the right time, it will be at high risk of facing the problem of inflation during the inflation face. Delays also increase the overall cost because of stages that have to be repeated because of wear. Sometimes the inflation of cost in project implementation is caused by the lack of commitment by individual contractors because they feel that they can always blame other parties. When the opportunity to blame other entities is eliminated, the primary contractor remains committed to delivering value-based on the initial budget.

The respondent felt that EPCM helps in ensuring that there is proper management of the resources in a given project. Just like was discussed in the literature review, this respondent explained that there are cases when it is necessary to adjust the budget even if the project was under EPC policy. The EPCM contractor will assess the situation and determine if it is justifiable to add the contractor some money to facilitate the completion of the project. Events such as earthquakes, flooding, or terror attacks cannot be blamed on the contractor. If the contract did not define how such issues should be addressed, the EPCM contractor is expected to assess the impact of the event and propose a justifiable amount of money that the contractor should receive to help mitigate the event. The goal is to ensure that there is fairness when addressing such issues that may become emotive.

Participant 8 explained, “The concept of engineering, procurement and construction management is gaining rapid popularity because of the growing need to reduce owner’s involvement in projects beyond sponsorship.”

The need to lower the cost of operations has forced government entities and large corporations to maintain a lean workforce. As such, there is always a strain when the sponsor has to undertake tasks such as sourcing for materials and monitoring every stage of the project’s progress. The new concept eliminates the burden as the contractor is expected to undertake all the activities. After making the financial resources available to the contractor, the sponsor can only make sporadic visits to the site to supervise the progress. It is the responsibility of the contractor to ensure that everything is done as per the expectation and within the right time.

Providing the needed resources does not guarantee that everything will be done as per the expectations of the project owner. EPCM contractor comes in to conduct supervisory activities on behalf of the owner. Given that such a contractor is an expert, they can identify any mistake that may be committed at any stage of the implementation of the project. They are required to point out the mistake to the contractor so that corrective measures are taken at the right time. The project owner will not be burden with the task of supervising the project. However, they will be guaranteed that all activities will be done as per the required standards. When the contractor fails to take corrective measures as advised by the EPCM contractor, the issue can be escalated to the project owner, especially if it is becoming apparent that the negligent behaviour may result in further mistakes that may cripple the project.

What are the factors that affect international engineering, procurement and construction management?

The researcher wanted to get the opinion of the respondents about factors that affect international engineering, procurement and construction management. During the review of the literature, various factors were identified. It was necessary to gather views of respondents over the same. The following are some of the explanations that sampled respondents provided over the issue.

Participant 1 said, “The relationship between the contractor and other stakeholders, especially the owner, sponsor and the government, significantly affect EPC-projects.”

The respondents felt that the success of these projects is highly dependent on the good relationship that the contractor can inculcate with relevant stakeholders. The relationship with the owner of the project is essential to ensure that activities are conducted within the right time and without any suspicions. The relationship with the government helps to avoid unnecessary disruptions in the process of implementing the project. A good relationship with suppliers will ensure that the contractor will have access to materials needed at the right time and in the required quantities and qualities. The EPCM contractor has the responsibility of inculcating the positive relationship between the contractor assigned the role of completing the project and the owner. The contractor should be keen on identifying potential differences that may emerge and proposing effective ways of managing them.

Participant 14 explained, “Trust is one of the most important factors that impact international engineering, procurement and construction management.”

The issue of trust has emerged as one of the major concerns that often affect the ability of a contractor to implement EPC projects, especially in a foreign country. A good example was the planned upgrade from 4G to 5G network in the United Kingdom. The government had decided to award the tender to Huawei. However, suspicions started to emerge about the real intention of this Chinese company. The primary fear was that through this company and the project, the Chinese government could easily spy on Britons and the British government. Whenever there is no trust between the contractor and the sponsor, owner, operator, or the government, it becomes almost impossible to implement a project. The EPCM contractor should ensure that there is trust between the contractor and project owner. Cases of suspicion may emerge, especially when the sponsor of the project feels that costs are unjustly inflated. It is the responsibility of the EPCM contractor to assess the situation and inform the sponsor of the need justified need for the budget adjustments. Any other confusion or disagreements should be addressed within the right time through openness and in a way that avoids disagreements.

Participant 8 said, “Financial incentives associated with EPCM can motivate contractors and owners to embrace the concept.”

A concept can only gain root in a given industry if it is beneficial to all the relevant stakeholders. The concept of assigning all the project activities to a single contractor is beneficial to all parties involved. The owner of the project will enjoy having a project that is completed at the planned time and without inflation of cost. The need to constantly monitor the progress of the contractor is also eliminated. On the other hand, the contractor also benefits from increased responsibilities. Instead of profiting from doing a single task such as designing a building or a road, the company will profit from all the activities. EPCM becomes necessary for both the EPC contractor who wants to enjoy all the profit and the owner who wants to be freedom from activities directly involved in the implementation of the project. The EPCM contractor will help the sponsor by maintaining regular supervision of the project and reporting on the progress. On the other hand, the EPC contractor will need the help of the EPCM contractor in justifying the need to extend the deadline for the project or increase the budget in case of the occurrence of unforeseen events.

How can the negative factors be eliminated or managed to enhance the success of EPCM in projects?

The researcher was able to determine that some of these factors affect international engineering, procurement and construction negatively, while others have a positive impact. It was necessary to determine how negative impacts can be eliminated or mitigated to promote EPC in the global community. Sampled respondents had various views on how these issues can be addressed.

Participant 5 said, “Awareness creation and empowerment of all the relevant stakeholders is essential in managing some of the issues that limit the effective implementation of EPCM.”

One of the challenges that corporations and government entities face is a lack of proper awareness about this new approach of undertaking projects. O’Neil (2019) explains that people find it difficult to support a concept that they do not understand. Many heads of government agencies and large corporations still feel that it is more beneficial to source for specialised firms in different fields instead of relying on an individual contractor that may still be forced to source for other tasks. Creating knowledge about the benefits of this strategy will help in enhancing its success. EPCM plays a major role in ensuring that there is effective supervision of projects by a professional. It means that if a mistake is committed, measures can be taken to correct it within the shortest time possible. It can also be used in coordinating and managing project activities, especially when a single project requires the involvement of two or more independent companies. When stakeholders understand the significance of this concept, they will embrace it as a means of improving their productivity.

Participant 10 said, “Technology can help address challenges associated with sourcing for materials that these contractors need to undertake their tasks.”

The respondent explained that a significant number of companies capable of embracing this approach of undertaking projects feel that procurement may be a problem in the implementation process. Given that these companies are not specialised in procurement, they need a simple but highly effective system of sourcing for materials that they need. Using emerging technologies can help in creating effective communication with the suppliers and transports both locally and in the international market. The future of EPCM and EPC in the global construction industry depends on the ability of stakeholders in this industry to understand its significance.

Conclusions

The concept of engineering, procurement and construction management in project management is rapidly gaining popularity both in the developed and developing economies around the world. It is evident that many public and private organizations around the world have come to embrace EPCM as a concept that helps in improving the overall success of a project. When analyzing factors that impact on EPCM, it was not possible to ignore EPC because of their close relationship. Once a contract is handed over to an individual company under the EPC agreement, the only remaining role of the owner is to wait for the handover of the completed project. However, the owner is expected to assign the role of the overall supervision of the project to the EPCM contractor. This contractor is expected to monitor activities of an EPC contractor or a group of contractors assigned the role of implementing the plan to ensure that the desired goals are realized. They have to represent the interest of the project owner or sponsor by ensuring that all activities are completed as per the original design and without exceeding the budget.

The EPCM contractor plays a crucial role in being the link between the project owner or sponsor and the EPC contractor or a team of contractors undertaking a project. Under normal circumstances, when a project design receives the owner’s approval and the needed resources are made available, the contractor is expected to do everything within their powers to ensure that everything is done as per the original plan. The problem is that unforeseen events may happen that may affect the activities in the project. In the review of literature, the outbreak of COVID-19 was identified as an unprecedented event that affected numerous projects all over the world. When such events occur, it becomes necessary and realistic for the project owner or sponsor to have a new contract with the contractor. EPCM contractor will act as the mediator in such new deals. They will assess the impact of the events, which must have to be an occurrence beyond the control of the contractor, and determine the needed extension of time and adjustment of the initial budget.

As shown in the analysis of both primary and secondary data, the traditional approach of managing projects has numerous challenges, the top of which include inflation of cost and delays in the delivery process. In this traditional approach, a single project can be implemented by several companies that have to undertake different roles such as design, construction, plumbing and electrification among other tasks. The problem that arises from the approach is that it takes longer for one team or company to hand over responsibilities to the next during the implementation process. It leads to the problem of delays in the implementation of a project. Another common problem of the traditional approach to project management is the inflation of costs. Delays often lead to an upward adjustment to the original budget. The ability of one contractor to blame another also makes them less careful about managing wastage and pilferage during the process of implementing the project. These weaknesses have paved the way for the emergence of EPC in project management.

In this strategy, all tasks from design, procurement, construction and any other task in the project are assigned to an individual company. One of the most important conditions under EPC is that the project has to be completed based on the initial budget. The concept also requires the contractor to ensure that all activities in the project are completed as per the schedule. It means that cases of delays cannot be tolerated in such projects. On the other hand, the owner or sponsor of the project has the responsibility of ensuring that all the needed resources are delivered at the right time. The study shows that the future of EPC in the global construction industry is bright. As many stakeholders continue to learn about and appreciate the significance of this approach of managing projects, it is more likely to become the standard practice both in the corporate world and governmental projects. Its benefits are becoming clearer both to contractors and project owners. However, it is strongly recommended that awareness campaigns should be launched to help empower all the relevant stakeholders. They need to understand the benefits of this approach of managing small, mid-sized and megaprojects. The following are the recommendations that should be considered by both private and public companies seeking to embrace EPCM and EPC in project management:

• When undertaking a project under EPC conditions, it is important to have a clearly defined arrangement on how to deal with unprecedented disasters such as earthquakes, terror attacks, flooding, and cyclones among others. The project owner can accept to compensate the contractor in case of such occurrences or to have an insurance cover. Taking such measures makes the work of the EPCM contractor easier when supervising the work of an EPC contractor.
• It is important to create awareness about EPCM among stakeholders involved in project management. The analysis of data shows that the concept is beneficial both to the project sponsor and contractors assigned the role of undertaking different activities. As such, it should be embraced, especially when undertaking megaprojects.
• EPCM contractors need to understand their role in project management as that which goes beyond supervision, coordination, and management. Sometimes that may need to become mediators when differences emerge between the sponsor and contractor.

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Introduction

Truss Construction Shop faced a difficult situation when one of the employees was injured while testing new equipment. This factor genuinely had a significant impact on the organization, as it had to face several financial and ethical problems. Such troubles can cause reputational damage to the company, especially those who are engaged in the field of engineering and construction work. The safety of employees is one of the priorities, as occupational injuries can become the focus of public attention. Therefore, it is necessary to trace the causes of misunderstanding and lack of well-coordinated communication between the company’s various divisions. These two factors are the main reasons for what happened because due to misunderstandings between the departments, each of them has its position and interpretation.

Explanation of the Issue

The main problem is that the truss, which the company tested, could not withstand the load, which led to an employee of the company being injured. For Truss Construction Shop, this event can lead to significant reputational damage. The fact is that the company has invested significant financial investments in the development of this technology. In addition, the new equipment was advertised as an innovative solution in the field of construction technologies. Taking into account this factor, the breakdown of the truss and the damage to the employee demonstrate the unreliability of this design. However, it is worth noting that the safety officer, QA manager, and engineer signed statements that suggested testing the equipment, exceeding the established limits. However, this information did not correspond to reality, so the company’s employees did not receive the necessary information. Consequently, all this indicates that the management has neglected industrial safety. This is because they ignored the threshold values, and the tests themselves were conducted without prior verification.

Analysis of the Information

Analyzing the details of this situation, it is necessary to note how it is perceived between different company divisions. The fact is that the sales department is interested in ensuring that production continues since technical inspection can take time. This is important so that buyers do not abandon the truss, leading to serious financial losses. In addition to this, the public relations department tries to level the situation by using various tools to change attitudes towards the organization. On the other hand, it may be noticed that managers continue to lead employees to fulfill the production plan. On the other hand, an employee told the press various details about the tests, after which she was fired.

Consequently, it becomes noticeable that the company has little interest in the safety of both employees and customers. This is reflected in the fact that they are trying to hide information from the public. In addition, it is worth noting that such a development of events may also be affected by the lack of communication between departments. Each of them perceives this situation differently. It is noticeable that the lack of direct communication with management and the lack of a necessary department for industrial safety is reflected in how the company copes with the situation.

Consideration of Alternative Viewpoints, Conclusions, and Solutions

It is necessary to consider alternative points of view that could clarify the cause of what happened. One of the main issues may be the fact of how the injured employee performed his work duties. When testing a company’s equipment, many factors need to be taken into account that can affect its failure. In particular, employees must be familiar with the safety regulations, as well as observe them when working. When checking the truss, using additional security aids could help avoid trouble. Protective means of emergency prevention of the situation should be provided by the company itself and used by employees. Another alternative point of view may be identifying errors during the production of the equipment itself. Thus, even if the company’s management was confident in the characteristics, they could not correspond to reality since there was a failure in the chain.

However, despite this, Truss Construction Shop should be responsible for the safety of employees, as this may affect customers as well. It is necessary to rethink all the activities of the organization to avoid the most reputational damage. To solve this problem, the company must make several structural changes. Moreover, the first and fundamentally important action should be to stop production since defective equipment cannot be sent to customers. If this happens again during engineering and construction work on the client side, then Truss Construction Shop may face reputation problems and litigation.

Solution

A special commission consisting of at least three people is engaged in the investigation of an industrial accident. It must necessarily include:

• a specialist in occupational safety or responsible for this work;
• employer’s representative;
• a trade union representative.

It is worth noting that in this case, the Commission is headed by the employer; they also approve its composition. If the employer is a private entrepreneur, the following persons take part in the investigation:

• the employer (or his representative);
• the victim’s representative;
• occupational safety specialist (possibly on a contractual basis).

Due to a more detailed study of the situation, it will be possible to discover the actual causes of the incident. After that, based on the results, the company should make an official statement without hiding the details. Thus, it will calm the attention of the media and the public. In addition, it is necessary to contact each customer to guarantee the safety of the products after making the required changes. To prevent similar situations in the future, an important step is to create a separate department that will deal with industrial safety.

Conclusions and Recommendations

Summing up, it should be noted that the company needs to look for alternative solutions to get out of the situation because of what happened. The lack of competently constructed communication between various departments and senior management leads to misunderstanding and underestimating the situation. The right decision in favor of preserving the company is to take a step back and incur certain financial losses. However, due to this, it will be possible to preserve the reputation and prove that the company is genuinely working on correcting errors. Due to this, it will be possible to make the necessary equipment upgrade, which will strengthen the trust of interested parties. The desire to continue its narrative about the fact that the company seeks to produce low-quality products can lead to significant reputational losses. On the other hand, if the situation occurred through no fault of the organization, then an ethical step would be a comprehensive check of the activities of all stages of production. However, for her time, it is necessary to refuse deliveries, thereby guaranteeing the safety of customers.

Brief Project Summary

The research is primarily focused on optimizing the transportation and supply chain elements of Modular Integrated Construction or MIC. The aim is to identify the most efficient and resilient method of manufacturing, storing, delivering, and transporting modules in accordance with the schedule with minimum disturbances, delays, damages, and costs. It is important to note that modular construction is a framework under which separate modules of a building are constructed off-site. These modules are later transported to the construction site to be assembled into an apartment, house, or any other building. The key benefits include standardization, lowered costs, and speed of construction. In other words, a modular construction method can build a building cheaper and quicker. However, since standardization and economies of scale are prime reasons for these strengths of MIC, customization is minimal. Therefore, the research objective is to apply a robust optimization model for the currently existing MIC organizations to assess how the logistics and supply chain can be optimized under the existing conditions.

The chosen methodology components include research philosophy, approach, and design. In the case of the former, the identified philosophy is pragmatism because the project is to be conducted on real-life local MIC construction companies. The approach is deductive since the hypothesis is based on robust optimization providing a better supply chain and logistics with fewer risk factors in MIC. The design is based on a case study, where the focus is put on MIC organizations. Both the research design and philosophy complement each other because the core of the research is the practicality of the observations, analyses, and recommendations. The data collection is based on quantitative research, which is expressed in a numerical form. The selection is due to the methodology’s reliance on robust optimization as well as the use of the Modular Suitability Index or MSI. The data is to be collected from the relevant government departments as well as specific MIC organizations or businesses. Depending on the availability and accessibility of data, the case study will contain from one to three cases.

The research is valuable due to the relative scarcity of literature in regard to the objectives. Firstly, it is stated: that “as the supply chain constitutes linked segments, a higher degree of stability and coordination is required to facilitate the free flow of information, materials, services, and funds among project participants” (Wuni, Shen, and Mahmud, 2019, p. 142). In other words, the supply chain for MIC is a complex system that tends to be fragile and vulnerable to disturbances and transportation risks. Secondly, a study suggests that “using robust optimization, the model accounts for common causes of schedule deviations in construction sites, including inclement weather, late deliveries, labor productivity fluctuations, and crane malfunctions” (Hsu, Aurisicchio, and Angeloudis, 2019, p. 1). Thus, the source assesses supply chain elements of modular construction as well. Thirdly, the Modular Suitability Index will be used for evaluations. It measures five dimensions such as connections index (CI), transportation dimensions index (TDI), transportation shipping distance index (TSDI), crane cost penalty index (CCPI), and concrete volume index (CVI) (Salama et al., 2017). Thus, three specific examples of sources can be used in the project.

Potential Value of the Proposed Research

It should be noted that the potential value of the research is manifested in the fact that housing is a major challenge in the modern world. It is especially true when it comes to highly urbanized cities with limited land. The price of homes is constantly increasing, and such a rise makes apartments and houses unreachable for average consumers. Therefore, any form of optimization of risks in the supply chain and logistics of MIC can lead to a reduction in costs for such construction businesses. In return, the home prices of well-optimized enterprises can be lowered since the price reduction is among the strongest advantages of modular construction, which plays a role in the industry’s competitiveness framework.

There is also a significant economic value in the research because it is practical and case-based. In other words, the applicability of the outcomes is high since real-life examples will be utilized for research purposes as data entries. The hypothesis of robust optimization is measured on data derived from MIC organizations, and any improvement is indicative of existing supply chain and logistics flaws. Therefore, the beneficiaries are both MIC companies and home buyers. The former will be able to have a potential solution to their supply chain, logistics, and transportation risks through better optimization. The latter group will be able to buy more affordable homes to improve their quality of life and financial position. In addition, one of the strengths of modular construction is the speed of construction because the modules are prefabricated off-site prior to their assembly on-site. This, the rate of home building in an urbanized area will be able to increase and even keep pace with the increasing demand.

Reference List

Hsu, P. Y., Aurisicchio, M., and Angeloudis, P. (2019) ‘Risk-averse supply chain for modular construction projects’, Automation in Construction, 106, pp. 1-12. Web.

Salama, T. et al. (2017) ‘Near optimum selection of module configuration for efficient modular construction’, Automation in Construction, 83, 316–329. Web.

Wuni, I. Y., Shen, G. Q. P., and Mahmud, A. T. (2019) ‘Critical risk factors in the application of modular integrated construction: a systematic review’, International Journal of Construction Management, 22(2), pp. 133-147. Web.

Abstract

Contractors often juggle the notions of Quality Assurance and Quality Control as they go about their everyday work on construction projects. The construction industry faces challenges in assuring high-quality outputs from the construction phase if neither the owner nor the workforce. To save money, paying close attention to all aspects of material management is essential. The modernization of construction methods has been made possible by employing cutting-edge tools and forward-thinking methods. Organizations that need to appreciate the significance of new technologies and adapt to new circumstances are, quite rightly, no longer welcome in the mainstream of construction activities. The underlying assumptions regarding the nature of procurement are crucial in determining the type of procurement practices seen as sensible. Production must be envisioned alongside transformation (T), flowing (F), and value generation, according to standard practice in Lean production (LC) (V). On the other hand, it is required to recognize and deal with the risk of loss of value with the same vigilance as has been shown in dealing with the other difficulties so far. Materials management is a crucial aspect of every project’s organization and management.

Introduction

Quality Assurance (QA) is a collection of systematic and well-planned actions that guarantee a certain standard of quality in the architecture, engineering, and construction (AEC) industry. It ensures that quality is built into the beginning of the project rather than the finish. External factors, such as setbacks in permission, inspection, quality control, availability of raw materials, labor, weather, etc., can cause issues with material demand and ultimately delay the project’s completion date. The planning stages are affected by the fact that each construction phase has its own set of needs and that any delay in the project will have an impact. Resource and labor availability are two of the most pressing issues in the building industry. To what extent one may participate in a construction project relies on whether or not the process is controlled internally or outside. Job dependence is something that can seldom be avoided. If construction management does not live up to standards for resource management, then a lot of management work and procurement studies could be required. Standardization efforts in architecture, engineering, and design provide the basis for many essential needs. To ensure that all essential materials are up to par with the firm’s quality requirements, the company has established a set of criteria for marking drawings and plans from conception to final approval.

Supply

Inadequate materials for storing are a common cause of problems on websites. The survey results indicate that supply chain and buying managers have a clear window into the financial health of their organization (Keenan et al., 2021). Material requests must be placed at the appropriate times to ensure on-time delivery at the agreed-upon quality. In order to fulfil the supplier’s demand, it was necessary to arrange the desired sports at the optimal times (Faeq et al., 2021). Procurement costs, waste, and other dangers can be drastically reduced when adequate storage space is available at a site.

System architecture

Inspection checklist

Materials management

Urban areas and restricted environment sites provide unique challenges when dealing with materials. Manufacturing materials help enhance the overall performance of creative initiatives in terms of triple constraints and productivity (Keenan et al., 2021). Standards for various types of work can be found in the publications of groups like the American Testing and Materials Society (ASTM), the American National Standards Institute (ANSI), and the Construction Specifications Institute (CSI) (CSI). Standard Specifications for Highway Bridges are produced by the American Organization of State Road and Transportation Officials, while American Welding Society welding standards are issued for specific construction activity (Keenan et al., 2021). Changes must be made to these general parameters to account for differences in climate, culture, materials available, legal requirements, and other factors.

Materials Delivery Form

Methodology

Figure 1 demonstrates the research approach.

Construction materials and equipment

Inadequate Access to Necessary Tools and Materials

Cement, gravel, gravel, iron, wood, brick, paint, ceramic, natural stone, and other building materials are some of the many construction materials that fall into one of two categories: the material names themselves and the derivative manufacturing that relies on them. In addition, indigenous and non-indigenous components were used in its manufacture, and it has a uniquely Indonesian trademark rather than belonging to a worldwide franchise network (Luo et al., 2022).On the other hand, using imported, non-native materials in production necessitates importing methods for getting such materials to market. Indonesia imports materials like metal, metal, and zinc and exports materials like aluminium, copper, and forests (Luo et al., 2022). Even though some resources are brought from Malaysia and China, there is significant evidence that other materials, primarily Portland cement and metal, are unavailable for reasons beyond production or trading difficulties.

About the Software Designed

Benefits of SPSS

SPSS has a wide variety of information and is simple to use—software for managing content and creating edits. Extensive statistical tools should take advantage of SPSS when there is a need for a versatile and adaptable method for getting granular on even the most complicated data sets (Egwunatum et al., 2022). It also frees up more time for the researcher to focus on the most critical tasks, such as recognizing patterns, creating prediction models, and reaching conclusions based on the evidence. Labeling variables and data values explicitly, saving information and documents in system files and documenting enormous datasets thoroughly.

Research Findings

T-Test, Evaluation, and Independence

T-test is applicable when a continuous variable has been collected on a sample of persons or products, and the mean value is compared to a hypothetical population means. Because it is based solely on the typical distribution, the one-sample t-test can only be used with numerical and continuous data from the sample (Egwunatum et al., 2022). However, if the information sequence technique became random, it would be reasonable to conclude that the observations were independent. To illustrate, instead of using a systematic sample, we may randomly pick laptop computers (Amusan et al., 2019). This ensures there is no chance of amassing a biased pattern, which could lead to incorrect conclusions. The one-sample statistics are displayed in Table 1.

Table 1: One sample statistics

T-test 1 is displayed in Table 2.

Table 2: T-Test 1

Table 3 shows a one-sample t-test.

Table 3: T-test 2

Considering Multiple Factors

The SPSS factor analysis is depicted in Fig. 2.

Statistical Methods for Quality Assurance

All materials and labor in a given facility might be put through a battery of tests as part of an optimal quality control program. X-ray inspection of welds is just one example of a non-destructive technique that can be utilized extensively throughout a building (Amusan et al., 2019). An on-site inspector can verify at any moment whether or not current practices meet standards. The fact that skilled workers may evaluate their supplies and progress as they go is a huge plus. However, having inspectors perform thorough, or 100%, tests on all materials and work can be very costly. Extensive testing is usually impossible since it necessitates destroying a material sample during testing (Faeq et al., 2021). Therefore, we use sample sizes to determine whether or not to accept a work item or a shipment of materials. In order to conclude the quality of an entire bunch or lot of materials or finished goods, statistical methods are employed to analyze the results of tests conducted on a small sample.

Test results with a limited sample size might be highly deceptive if not correctly interpreted. To illustrate, let us say that out of a batch of one hundred, ten are flawed (Amusan et al., 2019). Out of a sample size of five, the inspector will not identify any defects. Based on these samples, one cannot conclude that there are no defective items in the population. Because samples are selected randomly, there is a wide margin for error in any tests performed (Faeq et al., 2021). Only with statistical approaches can problems like the likelihood of varying degrees of defective parts in the complete lot be thoroughly examined from a relatively small test.

The results of the factor analysis are presented in Table 4.

Table 4: Factor analysis – statistics

The Collapse of the Trench

A hole between 12.5 to 18 feet deep was dug along the middle of a four-lane street to upgrade 1,200 feet of the sewer system. The contractor started digging the 12.5 ft. deep trench from the less deep end (Amusan et al., 2019). The contractor then dug a 9′ deep, 4′ wide rebar trench box to hold the soil in place. A trench box is a steel structure with an open top, bottom, sides, and ends. This strategy benefited from allowing two lanes of traffic to remain open during the reconstruction process. The trench box was holding its own in the shallower sections of the trench. However, as the depth of the trench increased, a larger volume of soil was left unreinforced beneath the trench box. In the trench, the soil began to collapse at irregular intervals.

After some time, a parallel six-inch water main gave way, flooding the ground below the trench and causing major soil collapse. The main water replacement was a last-minute addition to the original agreement. The contractor started sloping the trench’s sides, and the whole roadway had to be shut down. The trench box served its purpose for a while, but it soon became apparent that it needed to be more adequate and safer. Accidents from soil collapse were a constant threat to the trench crew (Faraji et al., 2022). Consequences for the surrounding infrastructure, including the parallel water main, were likely. Of course, the sloped excavation that was ultimately chosen over the use of tongue and grooved vertical sheeting for the entire height of the trench is the better option. Table 5 below shows the initial Eigenvalues.

Table 5: Initial Eigenvalues

Table 6 shows the component matrix, and the component matrix is shown in table 6 as shown below:

Table 6: Component matrix

Frequency Analysis

Consistently reliable vendors are analyzed in Table 7.

Table 7: Consistently reliable vendors

Trustworthy suppliers are depicted graphically in Fig. 3.

The frequency analysis of the company’s interactions with its vendors is displayed in Table 8.

Table 8: Analysis of the company’s communication patterns with its vendors

The connection to its providers is depicted in a graph (Fig.4).

The process of development is analyzed for frequency in Table 9.

Table 9: Methods of frequency analysis in product creation

The development process is depicted graphically in Fig. 5

ANOVA

Anova co-efficient data are presented in Table 10.

Table 10: ANOVA Coefficients

The residual data are presented in Table 11.

Table 11: Residual data

The Concept of Autocorrelations

In order to guarantee the facility performs as intended by design, control, and improvement in construction often involves verifying adherence to basic standards of craftsmanship and materials. Acceptance or rejection of batches of finished work or supplies is often based on random sampling and statistical methodologies to ensure compliance (Faraji et al., 2022). It will be rejected if a batch fails to meet or slightly deviates from its intended design parameters. The following sections elaborate on the steps in carrying out this quality assurance procedure. These conventional quality assurance methods presume a threshold below which defects are unacceptable (Amusan et al., 2019). If the projected defective percentage falls under the acceptable quality threshold, the inspection of the materials purchased from suppliers or the work conducted by the organization is considered successful. Delivered products with defects are fixed after they have been received.

The objective of total quality control stands in stark contrast to the more conventional quality assurance method. This method entirely eliminates faulty materials from the building process (Faraji et al., 2022). Despite the impossibility of ever achieving it, the objective of zero defects serves as a benchmark for measuring the success of a company’s quality assurance efforts. The idea and method of quality control were initially created in Japanese and European manufacturing enterprises but have now expanded to numerous construction firms. The International Body for Standardization’s ISO 9000 standard is the most widely recognized formal accreditation for quality improvement (Faraji et al., 2022). ISO 9000 requires thorough records to be kept alongside established quality standards and regular cycles of preparation, execution, and evaluation.

Total quality control, or TQC, is an approach to business that emphasizes excellence in every facet of operations. It is crucial to conduct design reviews to guarantee efficient and risk-free building practices (Abdullahi et al., 2019). Additional factors include thorough employee training, a transfer in the onus for defect detection from quality control inspectors to workers, and regular equipment upkeep. Quality circles are a systematic method of worker participation in better quality control in which groups meet regularly to offer suggestions for enhancing quality. All suppliers of raw materials must guarantee that their products are flawlessly supplied. Certified suppliers can undergo a partial inspection if they have performed well in the past. Table 12 displays the inter-factor autocorrelations.

Table 12: Inter-factor autocorrelations

Control charts

The operational plans control chart is depicted in Fig. 6.

Correlations between deliveries are shown between themselves in Table 13.

Table 13: Correlations between deliveries

The chart for monitoring dispatch operations is depicted in Fig. 7.

Safety

The selection of appropriate technology can also play a significant role in defining the level of safety present at a worksite. The machinery operators can be alerted to problems by safeguards incorporated into the machinery, which can prevent injuries (Abdullahi et al., 2019). For instance, even the most straightforward switches might prevent machinery from running if protection barriers exist. The availability of onboard electronics and sensors has substantially increased the possibilities for developing sophisticated machine processors and monitors for tools and equipment used in the construction industry. Choices regarding the work procedure and the materials used can impact the level of safety in construction. Replacing asbestos with another material might lessen or even eliminate the risk of developing a condition that manifests over an extended period, such as asbestosis.

It can directly affect workplace safety by educating workers and supervisors on the appropriate procedures and potential hazards. Recognizing the significant financial expenses associated with construction-related diseases and injuries offers significant impetus for education and awareness efforts. On virtually every work site, conducting routine safety inspections and holding safety meetings are now considered standard practices. Pre-qualification of general contractors and inter- and intra about safety is another essential step toward improving workplace safety.

Solution

Evidence-Based Practices (Case Studies) Presentation

Four selected case studies to examine requirement control methodologies, associated problems, and recommended enhancements in depth we used in this study. Details about the projects at hand in the case studies, including the types of projects and the industries served by the clients in question (Abdullahi et al., 2019). Exact results from the projects’ use of necessity management techniques, including a breakdown of the approaches taken, the people involved in the RSM techniques, the data collection procedure, and some excellent observations on the requirements control of each project, as well as the techniques themselves (Abdullahi et al., 2019). It is important to note that these case studies were designed to provide illustrative insights into the requirement analysis process inside a single project, not to be representative of prerequisites control procedures generally. Case study A was chosen for further examination and description because it has the most in-depth data.

Misunderstanding of Client Wants and Needs

Based on the findings of the semi-structured interviews, miscommunication about what customers want and need has emerged as RSM’s top challenge. Most respondents believed that ambiguities should compromise the accomplishment of the overall mission and the client’s satisfaction (Faraji et al., 2022). Therefore, gathering information about the customer’s wants should be the first stage in developing the project. Inadequate completion of this stage makes it extremely difficult to complete the project successfully and achieve the desired end.

Conclusion

Organizing and controlling the flow of materials is crucial to any artistic endeavor. This study ranked the most significant elements impacting the procurement, distribution, and management of construction projects in India. Experts with more than twenty years of real-world knowledge have identified and vetted various relevant elements from the existing literature. Twenty-eight considerations were listed in their search questionnaire. All we looked at were India’s construction projects, so that is what we did. Information was compiled from general and speciality contractors and subcontractors involved in various construction projects. According to the investigation findings, managing materials is a top concern, even though they need more space or are being stored incorrectly.

References

Abdullahi, U., Bustani, S. A., Hassan, A., & Rotimi, F. E. (2019). Assessing quality management practice in the Nigerian construction industry. Journal of Construction Business and Management, 3(2), 17-25. Web.

Amusan, L. M., Osinowo, S., Osawaru, F. A. I. T. H., Awotinde, L., Adelakun, A., & Peter, N. J. (2019). The building informatics approach to modeling construction quality assurance parameters to prevent the structural collapse of the building. International Journal of Technology, 10(2), 386-393. Web.

Egwunatum, S. I., Anumudu, A. C., Eze, E. C., & Awodele, I. A. (2022). Total quality management (TQM) implementation in the Nigerian construction industry. Engineering, Construction, and Architectural Management, 29(1), 354-382. Web.

Faeq, D. K., Garanti, Z., & Sadq, Z. M. (2021). The Effect of Total Quality Management on Organizational Performance: Empirical Evidence from the Construction Sector in Sulaymaniyah City, Kurdistan Region–Iraq. UKH Journal of Social Sciences, 5(1), 29-41. Web.

Faraji, A., Rashidi, M., Meydani Haji Agha, T., Rahnamayiezekavat, P., & Samali, B. (2022). Quality Management Framework for Housing Construction in a Design-Build Project Delivery System: A BIM-UAV Approach. Buildings, 12(5), 554. Web.

Keenan, M., & Rostami, A. (2021). The impact of quality management systems on construction performance in the North West of England. International Journal of Construction Management, 21(9), 871-883. Web.

Luo, H., Ling, L., Chen, K., Fordjour, A. A. M., & Chen, L. (2022). Digital technology for quality management in construction: A review and future research directions. Developments in the Built Environment, 100087. Web.

Negotiation role in contract management cannot be downplayed. It is the surest way through which companies and other multinational bodies secure tenders to undertake any project or even land a business deal. Negotiation itself takes place in between two or more parties and lead to a common resolution, an agreement for a common goal or course of action. It leads to overall content of the two parties and intends to achieve compromise.

For the success of the negotiation to be achieved, both parties must contribute. It should not be a monologue, but rather a dialogue. When the term negotiation is mentioned various aspect comes into play such as the venue, when or the time for negotiation, aggression in the push of the agenda, the role played among many other issues.

Negotiation process normally revolves around the issue at hand, preferably the pre-contract issue. In a more systematic manner the real process of agreement eventually follows. Unfortunately one of the parties may fail to confer to the agreed terms and conditions or even the indulgence of another third party that breaches the contract.

This then trickles to a post- contract claim by the other party, which in the end may either lead to contract termination or restating of the contract afresh. In a more coherent manner the essay tries to give a simple summary of various rules of negotiation.

For any negotiation to be a success in contract management, preparations must take place. To avoid any inconveniences that may result from date fixation, each stakeholder should be informed prior to match with their diaries. The days leading to the agreed date should be occupied with events culminating to the main negotiation event.

These events may include, holiday trips, vocational meetings. At other times, the day of negotiation may be placed in a tight schedule. The last minute rush leads to little or no time to gather the necessary information or indulge in constructive consultation.

Ample time is essential for negotiation to be successful. The negotiator should arrange for the pre-meeting. The parties involved should see the importance of attending the pre-meeting. The meeting should not in any manner be treated with triviality, but rather crucial and essential. It is at this meeting that the plan for negotiation is drawn up and any discontent of the participants met. It should not be treated as a presumption that the participants have all the information necessary for negotiation to commence.

The pre-meeting serves to establish a negotiation plan and assimilate the necessary information. Contributions by each party are made at this area. Preparatory meeting also equip the negotiator with the necessary information that is needed sorting out what is of importance and discarding the irrelevant information.

Relevant information helps in proper time management since it enables the negotiator to stick to the plan. It is also at this pre-meeting where the negotiator interacts with the participants through asking of questions. Any material of relevance is also submitted at this stage.

The parties should not withdraw any information they regard to be of essence. The preparatory meeting is also involved in weakness identification of one party. The meeting drafts the counter measures to be used if the other party capitalizes on the weaknesses. The meeting also serves in identifying the kind of people one is dealing with.

The information obtained from the preparatory meeting helps in planning. It gives the clear-cut objectives, for the negotiator and the other two parties and also how the objectives can be attained for compromise. This creates the avenue for an agreement to be reached. The objective of each group is identified together with their real needs. The background information for each group is also identified and the key information is fed to the lead negotiator.

The real needs of the opponent are also taken into consideration as some of the issues raised may not augur well with the opposition. The issues raised should not be treated with negligence. The other side may easily not be coerced and it is very vital for the other party to know what these issues are. Once the issues are known depending on the progress of negotiation talks, it helps one to bring a breakdown in the negotiation talks.

The most difficult parts for the opposition to yield should be taken into consideration. After the objective search, a well-established plan is laid out. Not everything that is planned succeeds, thus no matter how the plan is, there are inevitable events.

However, the existence of a plan gives a stable framework through which the ideas to be covered are dealt with without the divergence from the mainstream idea. It also helps to keep the negotiation talks on course. A negotiation plan should always be drafted taking into consideration each and every aspect.

The objectives for each party involved must be viable to help the lead negotiator comprehend the true stand. Both parties should also strive to be realistic. Being honest is crucial to the success of any negotiation. For the negotiator to strike a balanced deal, the negotiator must know the real truth.

This is only achieved by thorough briefing to the lead negotiator. The plan should not at any moment exclude the intended structure of negotiation. If the discussion proceeds to the plan as intended, success can be achieved. A well-structured plan should have at least an opening position, the order through which negotiation will take place, the manner through which the issues will be raised.

The most significant thing in any negotiation is for each team to define their respective roles and the contributions to make. Each member in the negotiation group should be briefed on the subject tackled and the process of negotiation process. The members in the negotiation process should have a role to play.

In all negotiation talks the leader forms their epicenter thus should be respected. The leader is responsible for the success of any negotiation talks. He provides the guidelines to be followed. All participants should be case sensitive and pay attention. The worst thing that can happen to a leader is when the leading role is compromised.

This drains down to deviation from the stipulated negotiation plan. Even though nothing goes as planned, both parties must stick to the plan. Diversion from the plan is the leader doing. No new information should be tabled without the consent of the leader. The teams involved should be united until the closure of the process.

The credibility of the team is put into question if it appears to be divided. Any disagreement should not be made public, but should be treated discreetly. Sometimes it is of benefit to feign ignorance and evade some questions which may jeopardize the strength of the team. Questions which may seem to be obvious should be avoided.

Questions which seem to be difficult for one to answer should be avoided especially those that are out of an individual profession. One should also be economical in answering questions. The questions should also be answered with a lot of certainty. Information should not be volunteered. This leads to objective lose and revelation of the secrets to the other group.

In the push for their views the teams should be aggressive, but in a formal manner. Negotiations at any instance are not easy, but they are tough and time involving. The other aspect of negotiation is the attainment of satisfaction. Good principles should be observed after the process of negotiation.

Physical capital refers to machinery, buildings, equipment and other tangible facilities used in the transformation processes. Production process utilizes inputs and converts them into outputs. Ideally, physical capital cannot convert inputs into outputs without additional supporting factors of production.

Economically as noted by Gwartney et al., production process entails conversion of inputs such as labor, capital and raw materials into valuable products (54). According to Anon, physical capital is subjected to non-economic version of measurement (3). Essentially, the optimal point of physical capital is production of goods and services.

Studies indicate that United States’ long run economic growth is largely contributed by the human capital, technology and the physical capital. Industries in the contemporary production depend on physical capital and technologies to increase production. Construction industry is one of key development initiatives that physical capital through machinery and technologies has impacted.

Through research, economic application of the physical capital to the production processes in most vital industries provide a conclusion as to why some states are richer than others, and the significant sources of economic development (Anon, 5). Ruiz Construction Company is an example of a real company where physical capital has dominated the production process.

Ruiz Construction Company

Ruiz Construction Company is a family owned company and a recognized corporation of producing high quality services and products. It is a general building construction and has wide experience and expertise in engineering related works as well as estate development. The company specializes in structural construction, repairs, tunnel construction, installation of infrastructure, and general estate building.

Investment in an economy is essentially the process of creating a free market system. Typically, investment can indicate the level of current capital stock, and capital stock in future. Construction companies result to physical development of the real estates in the United States.

Modern construction companies are investing in physical capital since it is efficient and an effective way of producing quality products. Traditional methods of construction were labor intensive. Present technologies and innovativeness have encouraged utilization of physical capital resources in production (Anon, 10). The corporation growth is accelerated by the investment in technology and capital goods.

A large percentage of corporation activities are capital intensive yielding to its efficiency and quality of products. Usually, aggregate inputs are subjected to capital intensity production process. Interestingly, the construction industry in United States is growing highly and substantially. The consequence of the growth and the competition makes companies to enhance strategies to provide a competitive advantage.

Company’s production process

Contractors are searching many technologies to achieve international standards of building. In United States, technology changes are highly impacting on the current building systems and process. For this purpose, companies such as Ruiz Construction Company are developing new processes and investing on capital intensity.

The company production process entails building system technology, technical aspects, and managerial aspects, environmental aspects, laying out site, planning and product making. In addition, product making is influenced by a variety of factors. These factors range from customer’s request, inputs, technologies used and the construction process.

Conclusion

Issues related to human labor intensity in production is old an economic concept. Modern society has changed from labor intensity to capital intensity methods of production. Companies have adapted to growth oriented policies that are driven to capital creation and adoption.

Exploring human capital and physical capital in construction industry is regarded as the order in value creation. In nut shell, physical capital intensity in production, especially in construction industry, increases economic growth and promote development sustainability. The current level of technology and improvement in physical capital creation with human capital endowment acts as an economy broadening factor.

Works Cited

Anon. (nd). Physical capital. How great places boost public value. Web.

Gwartney, James, Richard L. Stroup, Russell S. Sobel, and David MacPherson. Economics: Private and Public Choice. Stamford: Cengage Learning, 2008. Print.

Costing Types Definitions

Whole life costing (WLC) concerns the economic evaluation of all relevant assets during the period of construction. Therefore, WLC covers a broad range of various expenses related to the provided services of the construction company, including non-construction costs, income, and externalities (RICS, 2016). Moreover, WLC comprises repair, upgrade, and maintenance costs, which are necessary for the construction process and are generally governed by life cycle cost (LCC) expenditures.

As seen from the previous explanation, LCC is a narrower form of an economic assessment that primarily accounts for construction costs. Hence, LCC expenditures include construction, renewal, maintenance, operation, and end-of-life costs, but it does not account for income, non-construction costs, and externalities (see Figure 1) (RICS, 2016).

In this sense, LCC is the most effective instrument of economic analysis that reveals the project’s general expenses over a determined period of time. Ultimately, both costing types are crucial to understanding the construction process and all associated expenditures.

Costing Types Benefits

Although WLC and LCC are both applicable in construction, they have distinct benefits and purposes. The primary advantage of WLC is the analysis of the costs outside the scope of LCC. In other words, a thorough overview of non-construction costs, income, and externalities is crucial to determining the validity of the project and evaluating the potential alternatives. In the scope of WLC, non-construction costs refer to rental services, land acquisition, various fees, taxes, and other indirect expenditures that should be accounted for in the assessment report (RICS, 2016). Consequently, externalities concern all incurred costs that are not explicitly present in the transaction history. For instance, expenses paid by the customer before the project implementation generally belong to the category of externalities (RICS, 2016). Ultimately, since LCC does not consider the mentioned expenditures, WLC plays a vital part in the economic evaluation of the project and presents a more detailed overview of the associated costs.

On the other hand, LCC is the primary form of financial assessment that has an extensive number of benefits and secondary objectives. First, it presents a thorough analysis of all costs related directly to the project, such as construction, maintenance, renewal, and environmental costs (RICS, 2016). These metrics allow managers and buyers to understand the financial validity of the building and evaluate any potential alternatives. For instance, the distribution of professional fees and third-party costs for the construction phase presents an illustrative explanation of the expenses to the potential buyers who might have difficulties understanding the associated financial operations. As a result, LCC promotes effective communication in the provider/client relationship and makes the project more transparent, which is generally a highly beneficial initiative for both parties. Ultimately, LCC’s emphasis on details is its primary benefit, ensuring the unproblematic construction process.

Consequently, since LCC provides a highly detailed overview of each construction aspect, it allows managers and buyers to confirm the most cost-effective approach. This model is functional in all development stages of the project, ranging from the strategic outline to post-occupancy (RICS, 2016). It allows the managers to thoroughly evaluate the cost of each aspect during various phases, leading to an accurate financial assessment of the whole project. Therefore, this model significantly improves the risk management framework and presents a realistic estimation of the initiative’s costs and dates (RICS, 2016). Furthermore, LCC utilizes the comparisons between the actual performance and expected data to review the most challenging aspects of the project and predict the financial metrics. This operation enables benchmarking for each project stage, which enhances the project’s transparency (see Figure 2).

Ultimately, WLC and LCC have an extensive range of benefits for the project, primarily concerning a thorough evaluation of financial metrics, improved project transparency, and effective provider/client communication.

Costing Types Comparison

Finally, it is essential to present the general comparison between WLC and LCC by overviewing the examined differences and similarities. The first difference is the scope of the economic evaluation – WLC provides a broader but less specific assessment report (see Figure 1). Secondly, the costing types differ in the detailing aspect of the evaluation – LCC presents highly accurate data for each of the associated construction phases (RICS, 2016). The two mentioned factors lead to another unique difference between WLC and LCC. Namely, WLC utilizes external inputs, such as assistance from accountants and advisors outside the project, to calculate externalities and non-construction costs (RICS, 2016). On the other hand, LCC primarily deals with the internal expenditures during the period of analysis. Lastly, the distinction between WLC and LCC might differ depending on the national practices. For instance, the UK standards address occupancy costs in the LCC report, but other regions calculate them in WLC (RICS, 2016). In summary, while the two costing types have unique purposes and benefits, they are both crucial for the construction process.

References

RICS. (2016). Life cycle costing (1^st edition). Web.

The SWOT analysis is frequently employed in various management plans including construction projects. Every construction project comes with several internal and external issues. These issues and challenges apply to each construction project irrespective of its size. For instance, the construction project can involve either a big or a domestic construction.

The complexities involved in construction projects make it necessary to employ SWOT in the management practices. The SWOT analysis involves an evaluation of the strengths and weaknesses in a construction project. Any construction firm can use the ‘strengths, weaknesses, opportunities, and threats’ (SWOT) model as an evaluation mechanism.

The SWOT model can be used together with other construction management practices to help a company achieve its vision, goals, mission, and vision (White & Fortune 2002). This section evaluates the relevance SWOT has to the current construction management practices.

Strengths

Any good construction project has to make use of some vital management practices. These practices include “advanced project management skills, good relationships with subcontractors and suppliers, use of modern technology and machinery, and access to skilled employees” (White & Fortune 2002).

On the side of the construction investors, the management practices to be considered include meaningful contacts with both contractors and subcontractors. This practice ensures that the investor keeps track of the necessary licenses and permits for the entire construction project.

These management practices enable the investor to have a demand overview of the construction project. In addition, the investor will have the ability to track the financial progress of the project. Using SWOT to list these strengths in a construction project, the parties involved in a construction project can help to increase the success levels of a construction project.

Various studies have been conducted with the view of proving the relevance of SWOT in the evaluation of a project’s strengths. In a study of the construction companies in the United Arab Emirates, it was clear that the companies benefited from a SWOT analysis (Irshad & Shakeel 2010). This evaluation helped the studied companies to address the needs of their clients effectively.

This study also listed several areas that construction companies in the United Arab Emirates (UAE) focused during their SWOT analysis. The first aspect of this evaluation is the assessment of a construction company’s financial resources.

A construction company can achieve this evaluation using a local stock exchange company. When the company falls short of the expected financial levels, the company can make use of financial mergers and acquisitions. The mergers can be strategically conducted before undertaking a huge construction project. The study of UAE companies also found that the companies in the region needed to take stock of their experience.

This can be accomplished by utilizing the experience under the construction company’s dispensation. A good experience pool translates into an important internal strength for the company. The company can therefore use this pool of experience as a competitive edge against its competitors.

In another study that concentrated on the Azzaro Construction Project, contractors were asked to detail the relevance SWOT had on the effectiveness of the project (Milosevic 2011). The contractors involved in the project revealed that prior evaluation of a project’s strengths had many advantages. First, the contractors revealed that SWOT made it possible to conduct advanced project management.

For instance, on the Azzaro project some contractors were able to hire some of the “most experienced engineers and foremen and made excellent use of all employees on the project” (Milosevic 2011). The study also revealed that evaluating a project’s strengths always results in improved workforce stimulation.

When this project was underway, contractors were able to streamline wages using similar earlier projects. Moreover, the project was also able to utilize the services of a resourceful work force. The contractors also reported a better relationship with the suppliers that were involved in the Azzaro project.

Both case studies indicate the relevance of SWOT to real life construction projects. The UAE study indicated that companies usually relied on SWOT before undertaking any construction project. The studied companies also reported reaping major benefits from the SWOT analysis model. In the study of the Azzaro construction project, the contractors employed the SWOT analysis model to the letter.

Weaknesses

Weaknesses in a construction project are usually the factors that undo the strengths of a construction project. According to the SWOT model, the weaknesses often pose a threat to the success of any management practice. The most common weaknesses in a construction project are manifested through the refusal of contractors to adopt new management practices (White & Fortune 2002).

The weaknesses can also be manifested through lack of coordination, poor organization, bad correspondence with suppliers, and incompetent staff. The investor is also susceptible to weaknesses in the course of a construction project. Investors reveal weaknesses through lack of prospective clients, failure to adhere to regulations, and by hiring ‘inflexible’ contractors.

When these problems are exhibited by either the investor or contractor, they have the potential to undermine the success of a particular project. Nevertheless, it is should be noted that the SWOT analysis does not spell doom for the project.

Instead, the model points a contractor or an investor towards areas that might require extra attention. Both the UAE and Azzaro case studies reveal the relevance of the SWOT analysis to the prevailing construction management practices.

The results of the UAE research project revealed that the sampled construction companies were susceptible to weaknesses learnt through the SWOT analysis. The research indicated that lack of research and development was a major weakness for most of the sampled construction companies. Research and development is a vital tool in the building and construction industry.

Companies that ignored this aspect of the industry were faced by higher incidences of failure. The study on UAE construction companies suggested several remedies for this weakness. For instance, the research recommended that companies be on the lookout for new technologies. The study also suggested that companies should have long term plans that emphasized on the need for global research and development.

The other type of weakness outlined in this study involved incompetent or inexperienced employees. According to the study, this weakness manifested itself through loss of business to rival companies and inability to stick to the set deadlines. The study proposed training and retraining of employees. The construction companies were also advised to employ modern training mechanisms such as online training.

The study also found that construction companies in the UAE were lacking in efficient human resource management. This weakness was found to affect the companies’ overall output. As a counter measure against this weakness, the companies were advised to make their human resource departments priority areas that served definite functions.

The other weakness revealed by the UAE study indicated that local construction companies had the habit of waiting for “events that triggered strategic responses” (Irshad & Shakeel 2010). This habit translated to ineffective innovation. The research suggested that companies adopt a culture of innovation.

The Azzaro case study revealed weaknesses from both a contactor and an investor’s point of view. In this project, the contractors were faced with several weaknesses. Some of these weaknesses included high levels of ground water, lack of enough storage area, and constant changes in the scope of the original project.

On the other hand, the investors revealed their potential weaknesses. The investors in the Azzaro project indicated that their weaknesses included lack of determined buyers, inflexible contractors, and conflicts with the regulatory bodies.

The prior analysis by both contractors and investors gave the investment companies a clear advantage. The construction companies in UAE were able to access valuable proposals that had the ability to improve their overall efficiency.

In addition, the contractors and investors involved in the Azzaro project were able to evaluate the weaknesses they faced before undertaking the project (Milosevic 2011). The study reveals that the contactors and investors reaped huge benefits by employing the SWOT analysis.

Opportunities

Modern construction projects usually involve large teams of contractors, sub-contractors, and investors. If a team is able to navigate through all the construction management practices successfully, this means there is a bright future for such a team. The success of a whole team translates into probable opportunities for contractors and investors.

These opportunities may be in the form of future construction projects. A successful construction team might decide to reunite in another project. The second project is usually easier for the team because the involved team is already well coordinated (White & Fortune 2002). In addition, some construction projects have the ability to provide better housing options for the citizens.

The UAE research revealed that there were pending opportunities for local construction firms because of the coming into effect of the “General Agreement on Trade Services” (GATS) treaty (Irshad & Shakeel 2010). When the GATS regulations come into effect, the local construction firms will have an easier time venturing into overseas markets.

This would translate into increased revenues for the companies as well as increased room for diversification. The GATS regulations will also make it easier for the construction companies to source technical expertise from other countries.

The investors in the Azzaro project were asked about the opportunities they accrued from engaging in this construction project. Among the listed opportunities included the investors’ future chance to work with the contractors in the Azzaro project. The investors also had the chance of achieving good communication mechanisms with the parties that took part in the Azzaro project.

The study also indicated that the investors had the chance of scoring favourable contract terms in future construction projects. The contractors involved in the Azzaro project also reaped external opportunities because of their involvement in the Azzaro project (Milosevic 2011).

First, the SWOT analysis would enable the contractors to acquire favourable contract terms in future projects. The contractors also had the opportunity to gauge the reliability of the project’s investors. Finally, the analysis gave the contactors the chance to evaluate the method of financing that was compatible with the investors’ financing patterns.

By conducting a SWOT analysis, both the construction companies and the investors were able to evaluate the opportunities they accrued. The construction companies in the UAE were looking forward to the coming into effect of the GATS regulations. On the other hand, the investors and the contractors in the Azzaro project were looking forward to working together in future projects.

The familiarity between the two parties also made it possible for them to benefit from favourable-contract terms in their next project. Without conducting a SWOT analysis, it would be difficult for contractors and investors to take stock of such benefits.

Threats

In a construction project, threats refer to those difficulties that can be overcome. However, these problems can undermine the success of the management practices if they are not overcome. An example of a threat in a construction project is poor geographical location of a certain project (White & Fortune 2002).

In the UAE research, the construction companies faced the threat of having to compete with foreign and sometimes cheaper service providers. This was likely to happen after the GATS regulations came into effect. The GATS opened the lucrative UAE market to foreign investors and this posed a challenge to the local construction companies.

The Azzaro case study revealed eminent threats for both the contractors and investors. The contractors faced the threat of high levels of underground water and small storage area. On the other hand, the investors faced the threat of an “expiration of the time limit and reduced construction quality” (Milosevic 2011).

Overcoming the threats faced by both contractors and investors is mostly the secret to excellence. If a contractor or an investor is able to manoeuvre through these threats, this advantage is usually manifested in the project’s results.

References

Irshad, A & Shakeel, A 2010, “SWOT analysis of the large UAE construction firms”, International Review of Business Research Papers, vol.6 no. 2, pp. 221-238.

Milosevic, N 2011, “Practical application of SWOT analysis in the management of a construction project”, Leadership and Management in Engineering, vol.10 no. 2, pp. 78-86.

White, D & Fortune, J 2002, “Current practice in project management- an empirical study”, International Journal of Project Management, vol. 20 no. 1, pp. 1-11.

Risk management is currently a core integral process that helps to identify risks and come up with plans to mitigate their effects on projects. In production management, risks affect the quality or performance of a developed product. In the construction industry, risks can disrupt schedules of projects, as well as resources used in the project. Success of any project within the construction industry relies on the level of risk management that contractors put in place to curb construction risks.

With increasing construction activities and competition in this industry, there is urgent need to inculcate risk management in the entire construction process. At the same time, no construction project will be risk-free, thus applying ways of preventing and managing them is crucial in avoiding financial losses (Gentle 2002).

Risk management techniques must start from the initial stage of construction to the final stage, and in the process foresee possible risking factors that can undergo immediate mitigation process. Risk management has procedures that help in final mitigation of risks at all phases of construction.

Since construction projects are open systems, there is need to adjust the risk management process to the cooperative environment (Winch 2012). With high variability and riskiness of such projects, this industry ought not to rely on contracts for risk management. The processes are in a sequence, from risk identification to risk monitoring. There are also risk analysis and planning within the mentioned process.

With each construction stage presenting different risks, risk management process also changes to match the risk. Risk management at the construction sites is essential in enhancing the overall safety of labourers. Through operations management, managers are able to identify and manage inherent risks within the construction industry (Gunn 2009).

Uncertainty arises when the exact outcome of a project is not known, that is, there exist more than one possibility resulting in lack of complete conviction. In this parameter, there are probabilities in a given set of possibilities for occurrence of an event. The research paper discusses the changes in risk management processes at different phases of a project. Besides, the discourse expounds on how risk analysis for a construction project drive decision-making processes under uncertainty conditions at all the phases of a project.

Risk management process begins with identification of risks in a construction project. For project managers, setting risk management techniques into stages makes it possible in ensuring that products at each phase meet their purposes. Since many actors are involved in the project phases, contractors have to ensure that a party that has the best corresponding qualifications addresses such risks. For any typical project, there are the initiation, planning, implementation and closure phases (Li et al. 2005).

These stages represent the path a project goes through from commencement to its completion. In meeting the goals and objectives of a project, the contractor, project manager, designer, and owner must have one shared goal at all the phases of construction. Simultaneously, risk management must go together with the outlined phases. At the initiation stage of a project where the outlining of the purpose of a project occurs, risks that associate with identification are unknown.

However, possible risks at this phase must be measured against the benefits that the success of a project might have in order to determine whether to select the project or not (Gunn 2009). This stage touches on aims and objectives of the project, consultation process, and overall management of the design process. Since this phase is significant in determining the state of future phases, a risk management plan is necessary to mitigate potential risks that may arise (Gentle 2002).

For instance, in identifying key stakeholders who intend to finance a construction project, there are possibilities of support withdrawal. This constitutes a risk that concerned parties must have immediate solutions to address the situation, thus avoiding scenarios of project delay as per the schedule.

Time, cost, and quality form the framework for eventual evaluation of project risks and performance. In the UK, for instance, the government has allowed clients to consider other sustainability-related parameters (Clayton 2001). With time factor in question, risk management techniques must be in place to help contractors organise and handover the project for commissioning and occupation to respective clienteles.

Poorly finished structures present numerous risks to users and the public. Notably, high risking structures imply high premium to insurance companies, which is quite expensive (Bunni 2003). A review of a case study on the construction of a 380-meter steel and concrete bridge by Hidden Critical Paths (HCP) reveals the unique risk management awareness that helped in covering the possible risks.

The project manager had no management alternative that could have prevented the hidden risks in the project. In another project, building an 18-storey office tower presented numerous risks in which the HCP Deep Schedule Analysis identified several exit strategies as ways of managing potential risks.

The management focused on the identified paths that contained 254 tasks in order to prevent hindrances to timely completion of the project. HCP brainstorms on possible risks that can occur within the schedule, and then formulates a risk mitigation plan that stipulates how to manage too risky situations (Smith 1999). Therefore, project management helps in identifying whether a project is extremely risky in order to put in place necessary mitigation measures in the plan.

Most risks are not always under the control of project co-ordinators, hence the need for continuous decision-making to address the complex risks. Some of these risks include quality of materials, weather, and labour productivity. In execution of projects, contractors should ensure that the hired labour is productive and are up to the task in order to meet the objectives of the project within the set timeline.

Construction projects may fail to realise their purpose due to delays from owner’s interference, financing and payments, and unproductive labour. In addition, slow decision-making, inadequate contractor experience, and improper planning constitute risks that can cause delay to project completion or stop the construction process (Vyas 2009).

Notably, risk management process at this phase deals in perfectionism and competency among key actors in the construction project. For example, after identifying the possible causes of risks at the initiation stage, there ought to be a guarantee that all actors have competent skills and experience in their respective fields of operation. The aforementioned networks of risks that can cause delays in project completion require adequate preparation to avert negative consequences.

According to Chapman (2001), risks determination occurs at early stages of construction, but their effects are visible at the construction and production start-up stages. Risk categorisation puts risks that arise from similar causes in a specific group. Some of the common classifications include political, technical, financial, and logistics. The process of risk management changes with the types and categories of risks that are highly likely to occur at a specific phase of construction.

With different phases of projects, cooperation in risk management is vital in minimising the total cost of the whole project, as it helps in managing unforeseen risks in the post-contract phases. Close and efficient cooperation help to coordinate and integrate different components of the entire project (Smith 1999).

Further, actors cannot foresee all risk items at the planning phase. Risk management processes are iterative, implying that they repeat themselves in the entire life cycle of a project. Since there are high possibilities of making fundamental changes at the initiation phase of a project, execution of a risk management process is strategic. Risk management process helps in ensuring that well-grounded and unbiased decision-making occurs during the entire project development phases.

Just like the phases of project development, risk management has three vital processes, which include identifying of risk, estimating the risk, and risk response planning and implementation. There are also different accessory processes: risk management planning, risk communication, risk ownership enlargement, risk management approach, and risk management control. One has to know the risks in order to device means of managing them.

A study by Hillson (2009) reveals the need to make risk identification process a continuous practice and have iterative rounds in order to meet the expected objectives of the project. Hillson held that identification is the most regularly used risk management element in all the phases of a project. Risk identification and categorisation use modelling, brainstorming, interviews, and analysis of project plans and different scenarios as key methods.

After identification of risks, evaluation and ranking occurs in order to prioritise risks for management and effective allocation of resources. Even though the initiation phase of a project seems to be risk-free, there are several tasks on forecasting on possible sources of risk occurrence, which have to take place in order to mitigate the risks. The risk identification stage in risk management process is highly significant in the entire process since the success of other stages rely on this phase.

Risk management is presented in a wider uncertainty scope, and from different perspectives to assist in identifying all possible causes of risks in a project. In risk identification, there is always a list of all the sources of known unknowns and sources of risk or uncertainty.

Clayton (2001) reiterates that the uncertainty perspective approach is the most preferable approach in the risk identification segment given that it does not only determine all possible sources of threats, but also all possible sources of positive risks or opportunities. With increasing changes in the construction environment, there is always unrelenting follow up and frequent updating of the identification list as per the knowledge and comprehension of the project atmosphere.

After risk identification, vivid evaluation and estimation in terms of the probability of occurrence and consequence take place. Here, a clear comprehension on the major effects of the risks on the objectives of the project is needed given that several projects have limited amount of resources to set aside for risk management forcing concentration on key risks. Estimations on the likelihoods and consequences of risks are highly considered for prioritisation.

Although the identified risks do occur across the entire phases of a construction project, identification and evaluation have to take place at the initial stage (Vyas 2009). Risk management processes are mostly applied practically in the execution phase and not at the early stages. However, identification remains concentrated at the initiation phase of the project with fewer instances at the later stages. At this stage, high priority is accorded to reliable and consistent estimates of occurrences and effects.

Qualitative and quantitative analysis are applicable in risk assessment, where estimation of risk probability and consequence occurs in simple scales with clearly defined boundaries (Gunn 2009). For example, a scale of values ranging from 1 to 5 helps in classifying risks, with those requiring most attention placed under group 1 while the less detectable are classified under group 5. Those risks under category 5 may require prompt action if there are adequate resources.

At the same time, action may be necessary if the cost of mitigating the risk is less than the result of possibilities of risk’s occurrence and effect on the goals of the project. A probability impact grid is also essential in helping to compare the impact and probability of risks. Risk mapping helps in giving due attention to risks that are easily detectable and even taking action to control risks that have less impact and probability of occurrence to a project.

Probability

Since the two discussed risk management processes do not provide sufficient support for the remaining processes, data from these two phases ought to be organised to support interpretation and conception of the risks. Gunn (2009) adds that risk assessment can occur in relating a risk to other risks since such relations can make minor risks turn out to be more relevant to the entire risk management process.

This stage looks into the possibility of one risk causing another risk to rise; this is a risk continuum, which is a cause-and-result-sequence. For effective and efficient risk management, managing risk continuums at all the phases of a construction project is vital. As Gunn (2009) points out, assessments of risk-links have to consider relatively small number of risks given that they have numerous links that can take care of low-probability risks, which may cause more severe risks.

The planning phase of a project is where contractors create a set of plans to assist in guiding the project team to the implementation and closure phases of any project. For project managers, this phase is the most challenging, as they have to make estimations on the equipment, resources, and staffs that they need in order to complete their projects. They have to plan their procurement and communication actions by contracting any third party dealers.

In essence, project managers use this phase to create clear and comprehensive roadmaps to guide the processes in completing a project. Notably, there are strategic plans that help in guiding project managers in completing projects on time and within the earlier set budget. Several plans are created at this phase.

Some of the plans touch on the project, resources, finance, quality, risk, communications, procurement, and performance review. Since projects are dynamic, new risks that remained unidentified in the early phase frequently surface overtime (Chapman 2001).

This calls for regular review of the Risk Management Plan (RMP) in order to make alterations and additions. In terms of risk management, a risk plan created at the planning phase of a project helps in further identifying risks and developing a plan to mitigate them. It guides project managers on how to reduce risks completely in any project. In addition, they can monitor and control risks effectively, thus enhancing their chances of attaining success.

Just like in the initiation phase, a risk management plan helps in risk identification, risk categorisation, and prioritisation, determination of the probability of occurrence and identification of impacts on a project if the risk occurs. Therefore, the risk plan can be useful to project managers, contractors, and subcontractors in identifying preventative measures that can avert risk from happening, as well as listing contingent processes to follow in reducing the impact in case of risk occurrence.

The risk plan also helps contractors to programme the set of actions within an acceptable timeline, as well as check the position of the risks throughout the project life cycle.

Evidently, the initiation and planning phase of a project do not involve practical application of risk mitigation procedures, but deal in planning on the possible sources of risk throughout the project and how to counter the risks in order to allow a project achieve its objectives (Chapman 2001). For quick risk mitigation, actors in a construction project must refer the risk plan regularly. A risk plan boosts chances of success in projects by helping to foresee risks and lessen their effects should they occur.

Risk response planning and execution of risk management process takes place at the planning phase of a project, in which it develops options and determines measures of minimising threats and increasing opportunities to the project goals. In risk response planning and execution, there are four options of handling risk, such as avoiding, transferring, mitigating, and accepting. Actors in the construction industry have to plan of how to cope up with risks.

The process requires vibrant and communal principles in order to acquire collective responsibility in managing risks. A consistent attitude towards risks ensures that planned and taken undertakings bring expected effects on project risks (Li et al. 2005). Since risk management processes are iterative and on-going processes, there is need to have effective control over this phase of risk management in order to ensure that the technique is incorporated at the start of the project and monitored to produce the expected results.

Li et al. (2005) accentuate the need for teamwork and communication among the actors in a construction project as a way of risk management. To monitor and control the risk management processes, one has to write and check documents, as well as organise for meetings. Since the actual construction begins at the implementation phase, risk management processes at the initiation and planning phases only evaluate the basis of earlier decisions and assess the relevance of assumptions made at the same stages.

At the implementation or execution phase of a project, project managers have to ensure that the staffs manage time, risks, quality, and other issues in order to achieve the objectives of projects (Wu 2011).

At this phase, risk management process elaborates on necessary steps that actors in a construction project ought to take in implementing risk management. Project execution phase presents the actual point where practical application of the identified risks and mitigation procedures eventuate.

In this phase, time management is vital in completing a project within a given timeline, as it helps in monitoring the real progress of a project. As well, there is need to have a rigorous process in dealing with management costs to make sure that the delivered project lies within the earlier set budget.

The cost management process helps to keep contractors within budget given that it aids in monitoring and controlling project expenses, hence acting as a mechanism for saving money. Actors in a project use risk register to track risks as they occur. In different stages of construction, a risk register assists in writing down the identified risks and the present status of the dependent actions assigned. The execution phase being the action stage, risk process identifies and documents critical and non-critical risks in risk forms.

The actors receive notifications on the severity of all the risks, and take necessary steps to lessen the likelihood of risk occurrence. In addition, the risk process outlines all the risk processes in depth, as well as includes a diagram to explain the entire process of risk. It shows ways of identifying, monitoring, and controlling risks, and assists in mitigating risk using finest practice processes (Bunni 2003).

Here, project managers compare the project’s position and advancement to the actual plan. Given that this is the actual practical work, project managers can adjust schedules after understanding the environment in order to keep the project on the completion path. Risk monitoring and control assist in executing the risk plan and regularly evaluating the effectiveness of the plan in minimising risks.

The process can also help in monitoring allocation of resources that had been pre-planned. Moreover, paying great attention to the process can help in effective decision-making prior to risk occurrence. Clearly, communication with all project stakeholders is indispensable to assess the tolerability of the risk level.

The closure phase of a project marks the end of all activities that had been taking place at a construction site. Markedly, the closure begins at the planning phase where there is emphasis on consistent and detailed inspections of all procedures and processes of construction during the entire life cycle of a project (Bunni 2003). For instance, project managers who take proactive approach in supervising activities in the project plan reports limited complaints from customers.

Notably, constant inspections ensure that contractors follow the requirements of the project plan, hence incorporating aspects of risk management processes. At this stage, finalisation of contracts that covered all the resources that had been used in the project occurs (Vyas 2009). Contract closure checks on the project results and financial usage in the project. At the same time, finalisation of all activities that different groups had been engaged in takes place.

In case of project failure, project managers have to give a clear subject assessment on the possible causes of failure. This process also gives project managers opportunities to appraise areas of success on the project and recommend ideas applicable to future projects. This phase presents recap of lessons that actors have learned in the whole construction period.

In terms of risk management, project managers acquire feedbacks from key actors in the project concerning risks that went unnoticed, risks that received low intervention, and possible risk mitigation procedures that are applicable to future construction projects (Bunni 2003). In this phase, project managers may propose use of alternative risk prevention strategies if the used option did little to change the situation.

Numerous and necessary adjustments on risk identification, estimation, response planning and implementation occur at this last stage of a project. Manifestly, the closure stage is an integral part of a project lifecycle as it involves documenting the experience gathered during the construction period (Wu 2011). As assessment on the effectiveness and profitability of a project occurs, the risk management processes also go through in-depth reviews.

For example, reviews on the effectiveness of risk prevention methods take place at this phase. Additionally, confirmations of whether the risks materialised, and if so, possibilities of upgrading the current prevention technique occur.

For risk management, this phase acts as a recapitulation for the effectiveness of the risk identification techniques, estimations, and responses. Recommendations contained in the project completion report help project managers to make necessary adjustments to risk management processes by comparing it to the documents prepared during the initiation and planning phases of the project (Winch 2012).

Risk management processes change across the phases of a project from theoretical dimensions to practical applications during the implementation phase of a project. With increasing complexity in designs, owners, architects, contractors, and project managers should fully integrate the concept of risk management in the entire life cycle of projects.

Project risk management (PRM) being an integral component of project management helps in cost estimation and schedule. Risk management identifies uncertainty and offers forecasts of probable consequences. Uncertainty is a state of unknown possibilities within a construction project. In recognising uncertainties, analysis of risk during the entire project acts as a positive influence on creativity in decision making for the success of a project.

At the initiation phase of a construction project, qualitative risk analysis aids in assessment of the effect and likelihood of the risk that have been identified (Akintoye & Macleod 1997). Risk analysis applies two approaches to gauge the probability of occurrence and the impact of risks on a project. Qualitative and quantitative analysis are applicable in assessing the degree of risk occurrence.

Qualitative analysis uses comparable degrees of probability and impact of all risks that have been identified as likely to occur in the phases of a project (Vose 2000). After the assessment, builders, architects, contractors, and designers make decisions on prioritising the lists of the risks for direct prevention. On such uncertainties, the project team evaluates the risks for their probability of occurrence and their effects on the goals of the project.

Actors in the construction industry will be able take immediate actions to address urgent risks that can cause great negative impact to the project. Therefore, risk analysis makes it possible for project managers to prioritise risks as per their probability of occurrence (Morgan, Henrion, & Small 1990).

Decision-making process relies on the risk assessment and overall review of project risks. At the same time, in identifying, describing, and characterising of project risks, contractors are able to decide on the best action path to follow in order to address uncertainties. In addition, risk analysis enables contractors to evaluate actions that can mitigate the identified risks through an iterative process, thus occurring at all points in construction project.

In limiting uncertainty, contractors come up with risk register that elaborates on the extent of risks in a project, thus making them move forward in difficult situations due to quick decisions on the risk categories (French 2005). Prioritisation helps actors in the construction industry to make prompt decisions as it provide specific and documented risk proceedings. In uncertain environments, prioritisation assists in making decisions and addressing risk in a direct and deliberate way.

Since risks influence project objectives, prioritisation helps project managers to acquire necessary information on project resources. The forecasting technique makes risk analysis vital in making proactive decisions on how to counter impeding risks in order to allow a project attain its objectives. Qualitative analysis provides a prioritised list of risks that actors in the construction industry should work on in order to minimise their effects.

From this dimension, qualitative risk analysis eases decision making to architects in mitigating certain risks, as well as providing ways forward of handling other risks after completion of projects. The initiation phase of a construction project in which prioritisation of risks occurs makes it possible for actors in a project to institute proactive actions that verify the causes and impacts of risks (Morgan et al. 1990).

Risk analysis in the planning stage of a project helps in forecasting on cost estimates, as it identifies and quantifies the overall costs through quantitative methods of analysis (Vose 2000). In dealing with uncertainties, risk analysis assist contractors and other key actors in a project put necessary strategies to control cost throughout the life cycle of a project. Risk analysis encompasses risk assessment, risk management, and risk communication; the assessment process touches on identification and evaluation of risks (Smith 2003).

At the management stage, actors in the construction industry look into ways of controlling the identified risks, while risk communication tends to keep all the actors informed of all the necessary steps to mitigate the evaluated risks. Using the information acquired from the risk identification stage, actors in a project can make informed decisions to control and prevent risks. At the planning stage, contractors decide on the risks that need mitigation or opportunities that ought to be pursued.

The quantitative risk analysis method deals in numerical probability on whether a project may meet its cost and timeline goals. It entails evaluating the effects of all the risks identified in a simultaneous pattern.

Smith (2003) contends that using probability theory as a quantitative technique makes it possible for project managers to plan into the future and forecast on possible consequences. In gathering and presenting data on risks that are likely to arise in the entire phases of a project, planners make decisions that limit the overall value of uncertainty.

Estimated cost and dates of project completion together with their confidence levels are in the probabilistic analysis of a construction project. In this aspect, discussions on the associated risk and uncertainty in a project help in making appropriate decisions. Uncertainty in the planning phase receives complete attention after determination of the appropriate range to use in possible space outcomes.

Notably, it is the risk analysis at the planning phase of a project that gives contractors the go ahead to continue working on a project. Given that cost and schedule are the most vital risks, actors will have to work together to ensure that there are no mismatch and delays in project completion (Flynn & Bellaby 2007). Risk analysis enables contractors and project managers to determine risk acceptability by targeting a certain qualitative threshold for opportunities or mitigation.

The process makes it possible for actors in a project to set limits for risk levels and cost effectiveness. After determining the acceptability of a risk, project managers decide to pursue acceptable cost effective strategies in order to limit occurrence of such risk.

At the execution phase of a project, actual results of risk analysis begin to come up. With this phase marking the beginning of actual construction, concerned parties in a project devices a cost control methodology that ensures that all project cost are in line with the prior budget estimates.

Actual realisation of the uncertainties and risks occur, with new information helping in expanding or updating the documentation on assessment of impacts and probability of earlier identified risks. Markedly, in the implementation phase, risk valuation takes place along with earned value analyses in order to control project’s overall cost. Earned value processes and risk assessment in this phase assist in making prudent decisions that are highly likely to lower the base marks for risks and costs (Flynn & Bellaby 2007).

Since risk management processes are continuous throughout the phases of a project, risk assessment helps in providing insights to items of different risk levels, thus aiding in identifying potential origins of variances. With early identification, project managers get adequate time to correct a problem that could have great impact on a project. Here, decision analysis helps in flagging prospective risks that may cause uncertainty at any point in the life cycle of a project.

Taking advantage of a particular risk determines appropriate strategies that are applicable from a decision tree analysis. For example, risk analysis using goal tree techniques at the implementation phase of a project assist project managers in understanding the essence of time, possessing accurate data, and acquiring systematic and simple corrective approaches (Bunni 2003).

Time as a factor in a project influences decision-making process on the outcome of a project. Parties to a project will be able to have numerous decision-making options in using goal trees that is constructed in a simple and swift manner. With presence of accurate data and ample time, decision-makers can be able to choose among different alternatives on how to come up with new risk management techniques, which are efficient and effective.

Decisions that can correct observable variance emanate after in-depth risk analysis. Implementation of such decisions requires continuous monitoring until the completion of a project in order to enhance their effectiveness. With high level of uncertainty in construction project management, cost control becomes part of risk analysis to take care of the cost of completing such projects.

According to Akintoye and Macleod (1997), decisions made from the outcomes of risk analysis prevent instances of structural defects, fund misappropriation, and even failure of a project from reaching completion. Project managers use risk-based cost control methodology to acquire structured frameworks that helps in making cost control decisions at the initiation, planning and execution phases of a construction project.

Using a simulation technique in determining schedules and costs of a project, as well as performing decision analysis, develop a highly cost-effective solution to cost problems. In the closure phase of a project, risk analysis takes a historical perspective given that the actual construction process is over. Actors in a construction project carry out overall review of the entire project occurrences, and propose possible decisions that project managers should make in improving mitigation processes in future projects (Bunni 2003).

With displays of risk events from risk profiles, project managers are able to make risk acceptability decisions. Construction project managers can also be able to compare the proportionality link between likelihood of an event and impact on risks. Such comparison helps in handling project’s uncertainties that would have affect one or more objectives of a project.

In real life aspect, risk analysis in construction projects helps in making proactive decisions that are not only cost effective, but also life-saving to the actors in the construction sites (Flynn & Bellaby 2007). For instance, risk analysis takes into concern the issue of occupational health and safety of people at the construction site, as well as the public.

Risk management process in projects remains a significant practice that players in the construction industry must inculcate in the entire process of project management. Risks, if not mitigated properly, can cause great harm to the objectives of a project. Project risk management requires collective understanding from the project team in order to help in project risk assessment and uncertainty in order to support effective decisions on project progress and handover.

Such decisions do not only take care of the project’s objectives, but also on the safety and wellbeing of the public. With the discussed significance of project risk management, risk management processes ought to take comprehensive approaches to look at projects and carry out assessments and documentation of uncertainty and risks. Risk mitigation process has to follow a sequential procedure in enhancing effectiveness in reducing risks.

Therefore, project managers should respond to identified risks basing their actions on risk analysis. Risks that are likely to cause significant consequences on the goals of a project should receive maximum effort and attention. Actors in the construction industry should take a wide perception on issues of risk analysis and management processes in order to bring sanity within the construction industry, in terms of risk mitigation.

References

Akintoye, A. S. & Macleod, M. J 1997, ‘Risk analysis and management in Construction’, International Journal of Project Management, vol. 15, no. 1, pp. 31-38.

Bunni, N. G 2003, Risk and insurance in construction (2nd ed.), Spon Press, London.

Chapman, R.J 2001, ‘The controlling influences on effective risk identification and assessment for construction design management’, International Journal of Project Management, vol. 19, no. 3, pp. 147-160.

Clayton, C. R 2001, Managing geotechnical risk: improving productivity in UK building and construction, Thomas Telford, London.

Flynn, R., & Bellaby, P 2007, Risk and the public acceptance of new technologies, Palgrave Macmillan, Basingstoke, Hampshire England.

French, N 2005, Risk and uncertainty, Emerald Group Publishers, Bradford, England.

Gentle, M 2002, The CRM project management handbook building realistic expectations and managing risk, Kogan Page, London.

Gunn, S. A 2009, Risk and financial management in construction, Gower, Farnham, England.

Hillson, D 2009, Managing Risk in Projects, Ashgate Publishers, Farnham, England.

Li, B., Akintoye, A., Edwards, P. J. and Hardcastle, C 2005, The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, vol. 23, no. 1, pp. 25-35.

Morgan, M. G., Henrion, M., & Small, M 1990, Uncertainty: a guide to dealing with uncertainty in quantitative risk and policy analysis, Cambridge University Press, Cambridge.

Smith, N. J 1999, Managing risk in construction projects, Blackwell Science, Oxford.

Smith, N. J 2003, Appraisal, risk and uncertainty, Thomas Telford, London.

Vose, D 2000, Risk analysis: a quantitative guide (2nd ed.), Wiley, Chichester.

Winch, G. M 2012, Managing Construction Projects (2nd ed.), Wiley, Chichester.

Wu, D. D 2011, Modeling risk management in sustainable construction, Springer, Berlin.

Vyas, G 2009, Risk Management in construction Industry, Scribd. Web.

Introduction

In the construction industry, a comparative analysis is important because it allows constrictors and construction companies to analyze and evaluate methods and techniques used in other countries and apply them in a new setting. Maintaining a balance among philosophical, methodological, theoretical and information gathering orientations is necessary for problem-oriented research.

The researcher’s foundation, in theory, provides the orientation for defining a problem that is researchable within the discipline or disciplines involved in the research and with the resources available. International comparative analysis also provides the basis for the formulation of hypotheses and in the selection of the analytical techniques to be used. And it should be obvious that the interpretation of the results depends heavily on the theoretical orientation of the researcher. These statements are true even in integrated, multidisciplinary research as in construction systems research.

Comparative analysis

International comparative analysis plays a significant role in research by providing structure and form to “known” relationships as a basis for developing additivity and efficiency in the management of the knowledge quest. The international comparative analysis provides a sustainable basis that nurtures the progressive and necessary accumulation of knowledge to solve problems and create opportunities (Wu et al 2004). That is, with theoretical grounding we need not begin completely anew with each new problem. Yet often of necessity, conceptual adaptations are drawn from, but complementary with, various theories. These adaptations serve as evolving guides to applied research and may in time contribute to refinements in the theory (Best and Langston 2006).

Benefits of international comparative analysis

Comparative research helps to identify the need for constructing more highways, bridges and streets in addition to the maintenance required for the existing road facilities will result in the increase of employment in the heavy and civil engineering construction sector. The case of UK and German construction shows that increase in employment is expected across the industry. The processes of evolution, development and use of theory are normal and necessary within human reason (Clarke and Herrmann 2004).

A theory provides the “language” and “filing system” for conceptualizing relationships (systematic behaviour) and classifying information (facts and conditions). Facts, without classification, can not be understood and managed. Experience, transmitted through conceptualizations of need, order and causality, guides us in selecting from alternative classifications of fact. These conceptualizations have their roots in theory; they also provide for further development of dynamic or evolutionary theories (Wu et al 2004).

Consistent with the varied occupations in the construction industry education and training vary greatly ranging from basic schooling to graduate and postgraduate qualifications. It is possible to start a career in construction without having any qualifications. Another characteristic of the construction industry is that it needs appropriate physical stamina because of the working conditions and physical efforts required in most of the occupations where one may experience prolonged standing, bending, stooping, and working in cramped quarters (Wolcott 2001).

The construction industry workers are more exposed to the weather conditions because of the nature of most of the jobs that require working outdoors. Because of the type of tools used and work arrangements, e.g., scaffolding, they are prone to accidents injuries and even fatal falls from high places more than the workers of any other industry (Best and Langston 2006).

Possibilities and opportunities for national companies

The case of British and Chinese international companies allows us to say that comparative analysis permits us to conceptualize the interactions within a system. “Following a brief review of the past and present performance of British and Chinese construction firms in the international construction market, this paper will analyse their respective strengths and weaknesses” (Pheng et al 2004, p. 717). The theory of supply and demand serves as an example.

Into these two categories, we group factors affecting the prices of products and prices of production factors. Items that affect prices are income, population, factor prices, production coefficients and others. The first two include demand relationships while the last two are supply oriented. Similarly, plant production is influenced by genetic characteristics of the plant, soil and water conditions, and cultural practices, all containing a multitude of factors grouped according to numerous theories that are nurtured by various disciplinary and multidisciplinary configurations. The research process and analysis of research results flow from these theoretical formulations.

Research performance can be influenced greatly by the quality and applicability of the theory employed. The applicability theorem is often responsible for economists being called subjective. For example, facts to be studied or statistics to be computed sometimes can be selected in a biased manner (Pheng et al 2004). The type of system assumed causes the researcher to look at one component or relationship instead of another. For example, in a competitive market, the existence of stable equilibrium solutions may be assumed, and effort is devoted to exploring stable demand and supply functions.

Expansion and application of theory result in the identification of various sets of relations among facts. So, facts are initiators of theory and serve as a basis for relationships in the establishment of laws, thereby directly influencing the validation of the theory. Caution is necessary: as facts change, relationships change; relationships among erroneous “facts” are erroneous and result in weak if not unacceptable theories. Thus stated, relationships are not easily established and require much testing and interpretation. Scrutiny of the process and results of observing facts and relationships (hypotheses, generalizations, and laws) is required if a theory is to have the conceptual force necessary for assisting with applied research.

Principles provide the organization for managing the evolution from observed relationships of facts to laws and laws to theories (Deleon and Resnick-Terry, 1999). The role of principle in the theoretical system takes the form of assumptions, conventional beliefs and other “rules” that condition the environment within which theory evolves. The principles assist in the specification of hypotheses that express relationships and, when verified through application and time, serve as the basis for generalization, law, and theory. Knowledge formulation interacts with the evolution of theory and involves consensus to synthesis resulting from validation of various responses to the interaction of facts (Best and Langston 2006).

Knowledge, which is more than information, is based on a system of laws more commonly viewed as theory. It is not a collection of laws based on various unrelated but proven hypotheses and generalizations; instead, theory in support of knowledge is a system of laws brought together as relationships that can be altered or expanded through evolutionary hypothesis testing and generalization.

The recent emergence of thought surrounding farming systems research is an example of an evolutionary system of “laws” flowing from socio-economic and bio-physical scientists who desire to better understand and “assist” primarily small farm agriculture. Post-harvest food handling and distribution are assisted by many theory-based systems including physiology, pricing, transportation, storage, processing, inventory, promotion, quality control, consumer preference, and others (Deleon and Resnick-Terry 1999).

Comparative research can help establish cost effective hypotheses for applied problem-oriented research. Resource constraints can be reduced where theory, based on experience and proven conceptualizations, substitutes for investments that otherwise would repeat previous work. Formulation of generalizations (often stated initially as hypotheses) about factual relationships may be efficiently guided by theory. Such generalizations can form the basis for establishing or altering widely accepted sets of generalizations (laws). The theory then, through research applied to real problems, becomes a resource for interpreting, criticizing and unifying established laws that have empirical and experiential content (Best and Langston 2006).

International comparative analysis is neither universally respected nor systematically applied by all individuals. Some people, called realists, find the lack of reality in abstract theoretical models to be unacceptable. The realist views theory as a picture or map that sketches the frontiers of knowledge. Others view theory more as a tool of inquiry in the study of applied problematic situations. These pragmatic experimentalists are more at ease with empirical models and are often referred to as instrumentalists. The instrumentalists’ view is that the significance of theory lies in the investigative action the theory engenders. The realists’ more tempered view of theory is as an “art form” that inspires the imagination to better understand reality. In practice, this duality seldom prevails, and “good” research requires some of both (Deleon and Resnick-Terry 1999).

When facts and relationships are assembled in international research, ordered and conceived in a relationship, they constitute a conceptual system that may become a validated theoretical system. The various facts and relationships in a theoretical system may be logically analyzed and relationships other than those stated in theory can be deduced. From an instrumentalist perspective, we can deduce specific relationships between specific factors for our specific problems by using theory because it is general. The process of problem-oriented research, therefore, begins with a problem and usually with a process of deduction in which theory is employed.

With the theory, we develop hypotheses to be tested to find solutions to our problems. Without international comparative analysis to determine alternative solutions, we might be compelled to use a trial-and-error approach and might have to test and analyze every conceivable solution to the problem (Deleon and Resnick-Terry 1999).

In the construction industry, hypothesis specification is a task that brings theory to bear on applied problem-oriented research and vice versa. The causality specified by problem identification establishes the need for research and the causality presupposed by the related research hypothesis helps resolve the problem. Both depend on the body of knowledge expressed within the theory to suggest alternative causal situations from experience that may lead to successful research and resolution. Simultaneously something may be gained from the test that will respond to the problem and refinements or further verifications of the theory (Clarke and Herrmann 2004).

The use of theory to advance the quest for knowledge as a basis for dealing with life’s problems is a practice that probably began in antiquity. It is so because of our gift of reason, a natural process now assigned various titles, definitions, and explanations. Through the process of compiling and forming theoretical systems, it is possible to achieve both efficiencies for purpose of confronting ever more difficult problems and challenging opportunities (Clarke and Herrmann 2004).

Conclusion

In sum, for construction companies, information is the foundation upon which research is based; hence, one of the major tasks of the researcher is the collection of information for use in the research process. Information in general and data specifically areas critical to the problem identification phase of the project as they are to analysis. Their availability profoundly affects both the quantity and quality of research that can be produced within a given period.

There are few limits to the quantity of data that can be accumulated given sufficient time and resources; however, requirements are narrowed and brought into focus by careful research planning. In some cases, experimentation can reduce the time and resources required to resolve a particular problem when compared with non-experimental data collection. For example, an experiment (a taste panel for example) to determine potential consumer acceptance of a new product before it is marketed can be less time consuming, require fewer resources and involve less financial risk for the industry than consumer response survey research following the full-scale production and marketing of the product.

Researchers must be aware of the effect that certain resource limitations can have on their research. This cognizance will improve their research efforts by increasing the probability that the proposed projects will produce useful results. Projects designed in the absence of this consideration can and frequently do run into difficulties ‒ often the productive potential of the resources utilized is not attained. The result is that less effective information is made available for decision making and problem resolution.

List of References

Best, R., Langston, C. 2006, Evaluation of construction contractor performance: a critical analysis of some recent research. Construction Management and Economics. 24, 439–445.

Clarke, L., Herrmann, G. 2004, Cost vs. production: disparities in social housing construction in Britain and Germany. Construction Management and Economics. 22, 521–532.

Deleon, P., Resnick-Terry, Ph. 1999. Comparative Policy Analysis: Déjà vu all over again? Journal of Comparative Policy Analysis. Research and Practice: 1, 9-22.

Pheng, L. S., Hongbin, J., Leong, Ch. 2004. A comparative study of top British and Chinese international contractors in the global market. Construction Management and Economics. 22, 717–731.

Wolcott, H.F. 2001. Writing Up Qualitative Research, 2nd edition. Thousand Oaks CA: Sage.

Wu, Ch., Hsieh, T., Cheg, W.-L., Lu, Sh.-T. 2004. Grey relation analysis of causes for change orders in highway construction. Construction Management and Economics. 22, 509–520.