M. Motiar Rahman

Joint risk management through transactionally efficient relational contracting

The appropriate contracting method and the contract documents for any construction project depend on the nature of the project, but an appropriate contracting method coupled with clear and equitable contract documents do not by themselves ensure project success where people work together in the face of uncertainty and complexity with diverse interests and conflicting agendas. The attitudes of the contracting parties and the co-operative relationships among the project participants are important for successful project delivery. These are examined in the light of transaction cost economics and relational contracting (RC) principles. It is found that RC may well be a useful route towards reduced transaction costs, while also fostering co-operative relationships and better teamwork that in turn facilitate joint risk management (JRM). The usefulness of the latter is reinforced by relevant observations from a recent Hong Kong-based survey, followed by a case study in Mainland China. A basic model is conceptualized for improved project delivery via JRM. This is also seen to be reinforceable by further transactional efficiencies that can be achieved through other RC-based approaches, such as partnering or alliancing.

Curing congenital construction industry disorders through relationally integrated supply chains

Abstract Despite several strident calls for industry-wide reforms, construction industries remain ‘disabled’ by apparently congenital defects and inherent weaknesses. A barrage of remedial reforms and revisions of procurement regulations, practices, and contracting styles have been recently targeting enhanced value, superior performance, overall satisfaction and harmony. Many of these initiatives focus on integration of construction supply chains through significant upheavals in contractual arrangements, operational styles and contractor selection approaches, often using relational contracting approaches such as partnering, alliancing and even deeper collaborative/relation-building bonding initiatives. This paper is based on a synergistic integration of relevant results from a series of related research studies, as reinforced by knowledge distilled from other studies and experiences, and as reported in the recent literature. A relationally reinforced supply chain integration model is developed in this paper, to supplement the basic transactional contractual links and to release the latent energies that are needed to elevate construction industries in many countries.

Assembling integrated project teams for joint risk management

Exhaustive risk allocation cannot be achieved through contract conditions, because all risk items cannot be foreseen at the planning stage. Effective management of unforeseen risks/events at post‐contract stage needs the collective efforts of all major contracting parties. The attitude and motivation of project participants are critical to such collaborative arrangements. Project ‘partners’ need to be conditioned, starting with their selection processes, by incorporating appropriate ‘soft’ or relational qualities as important selection criteria. They would then need to work under suitable teambuilding protocols, with flexible contract conditions and appropriate adjustment mechanisms that would all be tailored to suit each specific project. The theoretical construct so developed is examined through a series of recent Hong Kong based studies on ‘joint risk management’. Results lead to the development of a framework for building a coalesced team that includes owners, consultants, contractors, subcontractors and suppliers.

Barriers of Implementing Modern Methods of Construction

AbstractModern methods of construction (MMCs) offer many benefits, but their uptake is low. Their contribution to the construction industry is also low. As such, this study examined the importance of various barriers to wider adoption of MMCs. Results are presented from statistical analyses of 160 questionnaire responses from the U.K. and China. The results validate the importance of 26 factors out of 29 used in the survey. Cost related issues are the most important barriers to implementing MMCs, although respondents from the two countries clearly disagree on the relative importance of different factors. Clients have consensus on the importance of fewer barriers than contractors and consultants, which is expected to help adopt MMCs. Large organizations displayed fewer consensuses than medium-sized organizations, who also displayed fewer consensuses than small organizations. This was interpreted to help the industry in adopting MMCs, because larger organizations control smaller organizations in most cases....

Integrating procurement and operational innovations for construction industry development

Uncertainty of eventual outcomes coupled with a reluctance to embark upon potentially long learning curves, have militated against much‐needed holistic innovations in our instant‐results‐oriented construction industry. While sporadic initiatives towards new organizational and/or contractual arrangements have enabled incremental improvements in some scenarios, the increasing demand for step gains in construction industry performance levels evidently envisages a more solid launching pad with re‐engineered paradigmatic foundations. Initial investigations suggest that the foregoing desired goals may be achieved together. Finally, a conceptual model that coherently synergises these strategies for institutional and industry development is presented and discussed.

Targeting relationally integrated teams for sustainable PPPS

Purpose – This paper targets the development of comprehensive approaches to prequalifying teams for Public Private Partnerships (PPPs). Design/methodology/approach – Research outcomes from a study into “relationally integrated project teams” (RIPTs) were applied to necessarily longer-term PPP scenarios. A force field model was developed to visualise the importance of stronger relational forces between the many PPP participants for “sustainable RIPTs” (SRITs). A framework was conceptualised to show linkages from relational contracting approaches, through sustainable relationships to sustainable infrastructure. This framework and a basic model for evaluating relational performance, were assessed by a panel of international PPP experts. Findings – The results encouraged the collection of factors facilitating successful relationships to build the proposed knowledge base. Literature review and initial interviews provide examples of priorities and lessons learned in relationship building in ongoing PPPs. Research limitations/implications – Being an integrative theory-building type exercise bringing together relational contracting, teambuilding and PPP performance research streams, this paper summarises and refers to, rather than provides details of, feeder research. Fleshing out the conceptual framework and model will next proceed beyond the initial testing and sample knowledge elements conveyed herein. Practical implications – Selecting good teams is essential for successful projects, and more so for PPP projects, given their complexities and longer timeframes. Increasing reliance on PPPs for infrastructure development and asset management enhances this significance. Originality/value – Synergies are derived from linking relationship-building and sustainability thrusts in the context of PPP performance. Concepts of “sustainable relationships” and “sustainsivity” (sensitivity to sustainability issues) are introduced.

Empowering collaborative decisions in complex construction project scenarios

Diverse construction project stakeholders demand “fully‐informed” and well‐balanced decisions that target multiple objectives appropriately. This paper introduces initiatives into the development of a cluster of information and communication technology‐artificial intelligence supported empowerment systems and sub‐systems. Examples presented include conceptual models and/or descriptions of: the framework of an over‐arching management support system (MSS); multi‐agent support for improved collaborative working in: design development and relationally integrated supply chain management; and web‐based quality management.

Multicountry Perspectives of Relational Contracting and Integrated Project Teams

AbstractWorldwide calls for integration in construction translate into needs for relational alignment of both structural and operational arrangements, in order to successfully streamline the combined efforts of diverse interacting parties, for improved project delivery. Appropriate applications of relational contracting (RC) principles can help to achieve such integration. As such, the aims of the reported study are to examine the relative usefulness of various potential factors and strategies and to offer suitable contractual and noncontractual incentives, for building an RC culture and building integrated project teams (IPTs) in construction. Results from statistical analyses of 224 questionnaire responses from five countries are presented. Trust and trust-based operational arrangements are seen to effectively offer the required incentives for implementing various RC-based arrangements in construction where top management commitment and their support play a vital role. The choices of country-specific ap...

Developing Web-based Tools for Teaching, Training, Learning and Development: The Role of Academic Institutions

Abstract Increasing demands and decreasing resources in the built environment sector point to critical needs for more effective teaching and learning tools for academia, as well as more efficient individual training and organizational learning mechanisms for industry. This paper ‘overviews’ two Web-based tools that target the upgrading of teaching-learning-training opportunities of university students and small and medium contractors (SMCs), respectively. Although these developments are based in Hong Kong, the overviews are preceded by a review of various challenges facing students and SMCs and the need for information and communication technology (ICT)-aided enterprise education in general. In terms of undergraduate teaching-learning, the reduced opportunities for actual site visits are being compensated for through Web-based ‘virtual site visits’, while supplementary knowledge on specific topics, such as ‘construction work study’, have also been captured in CIVCAL—a computer-aided teaching—learning package for civil engineering, building and construction undergraduates. The needs of SMCs in Hong Kong are being prioritized and addressed by the academia-led SMILE-SMC project, which it is envisaged will be eventually accessed by ‘large’ contractors, as well as consultants and clients. This would then enable them to communicate seamlessly on project-specific information management platforms to improve performance on specific projects and, indeed, across more sustainable construction supply chains.