Patrick S. W. Fong

Final contractor selection using the analytical hierarchy process

Some contractor selection methods currently in existence are criticized as incomplete and biased, and lacking consideration in terms of the contractors ability to achieve simultaneously, time, cost, quality and safety standards. This research examines an alternative contractor selection model called the analytical hierarchy process (AHP), which will help construction clients to identify contractors with the best potential to deliver satisfactory outcomes in a final contractor selection process which is not based simply on the lowest bid. The AHP comprises three parts: hierarchic structure, prioritization procedure, and calculation of results. This model is tested by a hypothetical scenario where three contractor candidates are evaluated. The criteria used for contractor selection in the model have been identified, and the significance of each criterion has been arrived at by conducting a questionnaire survey in public organizations in Hong Kong. Comparisons are made by ranking the aggregate scores of each candidate with regard to their performance against each of the criteria, and the candidate associated with the highest scores is the best contractor on this occasion.

Knowledge creation in multidisciplinary project teams: an empirical study of the processes and their dynamic interrelationships

Abstract This paper reviews key literature on team processes and knowledge creation. Specifically, it assesses and synthesises relevant theories and thoughts to develop a conceptual model of the knowledge creation process. Empirical evidence, collected from two projects—an infrastructure development project and a residential development project—is also exploited as a means of building a conceptual model of knowledge creation. This paper explains the processes of knowledge creation within the context of multidisciplinary project teams. It also considers the dynamic interrelationships between the proposed processes. The paper provides a framework not only for future research to systematically examine and test knowledge creation processes within different team situations, but also to allow management to continuously anticipate knowledge creation activities within their own organisations. This research contributes to studies of organisational knowledge and knowledge creation by providing an explorative account that synthesises the existing literature with empirical evidence. Secondly, this research contributes to the theoretical development of knowledge creation by focusing on its processes rather than just on its outcomes and implications, which have been the main concern of other researchers. Finally, the development of a multidisciplinary knowledge creation theory contributes to the consolidation of the various dimensions of knowledge-related activities that have in the past been treated in isolation.

Organizational Culture and Knowledge Management Success at Project and Organizational Levels in Contracting Firms

This research focuses on contracting firms within the construction sector. It characterizes and evaluates the composition of organizational culture using four culture types (clan, adhocracy, market, and hierarchy), the strategic approach for knowledge flow, and the success of knowledge management (KM) systems at different hierarchical levels of contracting organizations (project and parent organization level). Responses from managers of local or overseas contracting firms operating in Hong Kong were collected using a carefully constructed questionnaire survey that was distributed through electronic mail. The organizational value is analyzed in terms of the four cultural models. Clan culture is found to be the most popular at both project and organization levels, which means that the culture of contracting firms very much depends on honest communication, respect for people, trust, and cohesive relationships. On the other hand, hierarchy culture, which focuses on stability and continuity, and analysis and control, seems to be the least favored at both levels. Another significant finding was that the two main KM strategies for knowledge flow, codification and personalization, were employed at both project and organization levels in equal proportion. This indicates that successful KM efforts at both enterprise levels utilize a hybrid and balanced approach for their knowledge flow, and that they complement each other. The findings also revealed that knowledge management system success factors emphasize the support of the management level. The results show that KM is critical and beneficial as indicated by 64% at the project and 74% at the organization level. The expectation is higher for organizations as they are the organizational memories in which experiences of past projects are archived and connected. Understanding these factors and the relationships among them has been demonstrated to be critical in order to increase the chances of success or to help with making decisions when applying KM.

The processes of knowledge management in professional services firms in the construction industry: a critical assessment of both theory and practice

Purpose – Quantity surveying firms are characterized by their professional identity and knowledge‐driven nature; knowledge is crucial to their success in the competitive and dynamic business environment. As knowledge management is still in its infancy in the construction industry and structured knowledge management processes have not yet been adequately deployed in the surveying discipline, this research seeks to focus on the implicit knowledge management processes being undertaken in professional quantity surveying firms in Hong Kong.Design/methodology/approach – A framework of knowledge processes was developed from a detailed literature review in an attempt to enhance the knowledge flow in Hong Kong professional quantity surveying firms. The applicability and validity of the framework were verified by quantitative research methods. Based on the proposed process model, a questionnaire survey was then conducted to study the opinions of professional quantity surveyors on the details of these processes; the...

Is the Hong Kong construction industry ready for value management

Abstract This paper introduces the findings of a research project entitled “Value Management (VM) in the Construction Industry in Hong Kong”. It starts with background information on the research project, followed by a detailed analyses of the findings, including knowledge and perceptions of VM, applications of VM in the industry, approaches adopted in Hong Kong and the results of VM studies. Future prospects and the obstacles impeding the application of VM in the Hong Kong construction industry are discussed. As revealed by the survey, misunderstanding and false perceptions of VM still persist in the minds of clients and construction professionals; many construction professionals have not even heard the term, and very few respondents have participated in a VM study. In addition, the savings in construction costs through the application of VM are insignificant in the eyes of local developers, due to high land costs. The traditional contracting method imposes a strict distinction between the design and construction phases, which leads to a confrontational attitude between the design and construction teams. Add to this the problem of professional barriers, and it is clear that VM in Hong Kong is engaged in a struggle for survival! Whether VM is able to make the transition from the infancy stage to the development stage will much depend on the willingness of government to take a leading role, and on the attitudes of clients and construction professionals.

A framework for benchmarking the value management process

Aims at developing an analytical framework for benchmarking value management. After a review of the extant literature on value management, identifies several critical success factors and related performance metrics. These critical success factors, such as management commitment, facilitator’s skills, brainstorming, group effectiveness, customer satisfaction, etc., represent the key characteristics of the value management methodology. Such a framework provides a foundation for researchers to undertake further research on benchmarking value management. It also serves as an evaluation platform for value management teams to assess their performance.

Evaluation of knowledge management performance

Knowledge management (KM) strategy is the planned or actual coordination of a firms major goals and learning in time; this coordination continually co-aligns the firms knowledge-based resources with the environment. Based on the organic perspective of strategy, a KM performance evaluation approach should be able to 1) review the knowledge governance mechanisms and learning routines that underpin the KM strategy, as well as the performance outcomes driven by the strategy, and 2) predict the evolution of performance drivers and outcomes into the future to facilitate strategic planning. This study combined a survey study and a system dynamics (SD) simulation to demonstrate the transformation from a mechanistic to an organic perspective on KM strategy and performance evaluation. The survey study was conducted based on a sample of 143 construction contractors and used structural equation modeling (SEM) techniques to develop a KM performance index for reviewing the key elements that underpin KM strategy. The SD simulation predicted the development of KM strategy configurations and the evolution of KM performance over time. The organic KM performance evaluation approach demonstrated by this study has significant potential to improve the alignment of KM strategy within an increasingly dynamic business environment.

A critical appraisal of recent advances and future directions in value management

At present, value management (VM) is struggling to survive amidst other management fads. The problem is that it is still not recognized as a professional or academic discipline. There is no sound academic base and a lack of understanding by the public, owners and corporate organizations. The future survival of VM is therefore always being questioned. This study adopts a quantitative approach, trying to gaze through a ‘crystal ball’ to look at current practices and forecast the future courses and directions of VM by considering different aspects such as education, research, practice, VM societies and promotional activities. Various influences on VM development are also examined. The survey sample was taken from the membership directories of SAVE International, USA, and the Institute of Value Management, UK. Forty per cent of the members were selected for the study on a random basis, and the response rate was 23%. From the survey findings, each of the different aspects will be examined in detail. In addition, the paper introduces a building engineering and management programme on offer in Hong Kong, which integrates the VM topic into the syllabus of a course in engineering economics.

Knowledge and experience sharing in projects-based building maintenance community of practice

Owing to the unique nature of building maintenance projects, building professionals need sufficient technical, product and project-organising knowledge and experience to facilitate their decision-making. Apart from gaining this knowledge and experience by learning on the job, learning from others is an important alternative. However, insufficiencies have been found in the current practice on this aspect, thus, the aim of this study is to examine whether knowledge and experience in building maintenance projects could be reused in a more effective and efficient way by forming a community of practice across organisations and whether a proposed web-based experience management system would be a feasible solution in the sharing, capture, and reuse of knowledge and experience in building maintenance. A questionnaire survey and interviews were conducted to study the opinions of building professionals on various issues related to the sharing, capture, and reuse of knowledge and experience in building maintenance projects, as well as the requirements of a proposed web-based system.

Integration of value analysis and total quality management: The way ahead in the next millennium

Total quality management (TQM) has been embraced by many organizations in the last decade. It is argued that TQM can achieve its full potential by the integration of TQM and other performance improvement techniques. Value analysis (VA), which focuses on products function and cost, is proposed as a potential area for cross-fertilization. This paper seeks to explore the common areas between VA and TQM and suggests some possible ways to apply VA within the TQM process. The basic principles of TQM (customer focus, continuous improvement and teamwork) could be fully addressed by blending VA and various TQM tools and techniques such as quality function deployment and design for manufacturability. VA also serves as a mechanism which glues the TQM principles. Further work should be done to examine the possibility of integrating TQM, VA and other performance improvement principles and tools to assist organizations forging their competitive advantage.