Xiaohua Jin

Determinants of Efficient Risk Allocation in Privately Financed Public Infrastructure Projects in Australia

Risk allocation in privately financed public infrastructure projects, which are mainly referred to as public-private partnership (PPP) projects, is a challenging job due to the nature of incomplete contracting. An investigation into the mechanism that guides the formation of efficient risk allocation strategies is thus desirable. Drawing on the transaction cost economics and resource-based view of organizational capability, this paper has identified five main features of the transactions associated with risk allocation in PPP projects. They include partners’ risk management routine, partners’ risk management mechanism, partners’ cooperation history, risk management environmental uncertainty, and partners’ risk management commitment. For achieving cost efficiency, different risk allocation strategies may suit different conditions of the features. Accordingly, a theoretical framework and five hypotheses were proposed for testing. Data collected in an industrywide survey were analyzed using multiple linear r...

Relationship-based determinants of building project performance in China

The aim of this paper is to investigate the relationship‐based factors that affect performance of general building projects in China. Eight performance metrics that may be used to measure the success level of construction projects are defined and categorized into two groups namely ‘hard’ and ‘soft’ performance. Eight indicators of risks inherent in relationships and seven indicators of tools expected to facilitate relationship building that may affect project success are identified. Data of different projects were collected in China via a self‐administered postal survey. By using structural equation modelling techniques, a structural model is developed to help explain the relationship among different variables. It has been found that relational risk has negative influence on project performance. It is recommended that firms in the Chinese construction industry manage the relationship‐based factors that are significant in the model so as to achieve project success.

Constructing a framework for building relationships and trust in project organizations: two case studies of building projects in China

A framework is constructed that can be used to foster trust and build relationships in construction project organizations in China. The research method was based on in‐depth study of two building projects in China and data were collected via face‐to‐face interviews. The results show that as the project progresses, the dominant relationship within each stage deepens. The deepening relationship gives rise to different types of inherent risks such as a partners self‐interest seeking behaviour and opportunistic actions. To counterbalance these risks, trust fostering tools must be employed such as careful selection and effective management of partners. The framework for fostering trust and building relationship developed in the study suggests that (1) relationship deepens from shallow dependence to deep interdependence as the project progresses; (2) different relationships bring about distinct inherent risks; and (3) different trust‐fostering tools counterbalance specific inherent risks. This framework could aid in reducing adversarial relationships by suggesting ways to foster trustworthy relationships.

Model for Efficient Risk Allocation in Privately Financed Public Infrastructure Projects Using Neuro-Fuzzy Techniques

Risk allocation plays a critical role in privately financed public infrastructure projects. Project performance is contingent on whether the adopted risk-allocation strategy can lead to efficient risk management. Founded primarily on the transaction cost economics, a theoretical framework was recently developed to model the risk allocation decision-making process in privately financed public infrastructure projects. In this paper, a neuro-fuzzy model adapted from an adaptive neuro-fuzzy inference system was further designed based on the framework by combining fuzzy logic and artificial neural network techniques. Real project data were used to train and validate the neuro-fuzzy models. To evaluate the neuro-fuzzy models, multiple linear regression models and fuzzy inference systems established in previous studies were used for a systematic comparison. The neuro-fuzzy models can serve the purpose of forecasting efficient risk-allocation strategies for privately financed public infrastructure projects at a highly accurate level that multiple linear regression models and fuzzy inference systems could not achieve. This paper presents a significant contribution to the body of knowledge because the established neuro-fuzzy model for efficient risk allocation represents an innovative and successful application of neuro-fuzzy techniques. It is thus possible to accurately predict efficient risk-allocation strategies in an ever-changing business environment, which had not been achieved in previous studies.

Neurofuzzy Decision Support System for Efficient Risk Allocation in Public-Private Partnership Infrastructure Projects

The performance of public-private partnership (PPP) infrastructure projects is largely contingent on whether the adopted risk allocation (RA) strategy is efficient. Theoretical frameworks drawing on the transaction cost economics and the resource-based view of organizational capability are able to explain the underlying mechanism but unable to accurately forecast efficient RA strategies. In this paper, a neurofuzzy decision support system (NFDSS) was developed to assist in the RA decision-making process in PPP projects. By combining fuzzy and neural network techniques, a synthesized fuzzy inference system was established and taken as the core component of the NFDSS. Evaluation results show that the NFDSS can forecast efficient RA strategies for PPP infrastructure projects at a highly accurate and effective level. A real PPP infrastructure project is used to demonstrate the NFDSS and its practical significance.

Social sustainability in construction : an explorative study

Abstract The construction industry has massive impacts on the society, environmentally, economically and socially. Sustainability has been an important issue being considered by both industry and academia. However, existing sustainability studies in construction are largely related to the environmental and economic aspects. Social sustainability seems missing from the research radar. A qualitative approach is adopted in this study to explore the social sustainability issues in the construction sector. Particular focuses are placed on the attitudes of industry professionals on social impacts of construction activities and the measurement of social performance of construction projects. The results show that there is a reasonable level of willingness from industry practitioners to take these issues into consideration in their projects. This study also highlighted 26 criteria to measure social sustainability in construction context. These criteria form a basis for the evaluation of social sustainability performance for construction related enterprises. Limitations of this study are also discussed.

A comparative study of effectiveness of peer assessment of individuals’ contributions to group projects in undergraduate construction management core units

In recent years, various forms of group work have been introduced in university courses across various subject domains, including construction management courses. Although the use of group work in higher education has sound pedagogical reasons and advantages, group work has its own drawbacks. Therefore, the acceptance by students and the success of group work critically depend on a fair and credible assessment of the group process. In this paper, the implementation of different approaches to peer assessment (PA) of individuals’ contributions to group projects in two core units in an undergraduate construction management course in an Australian university is reported. The effectiveness of the adopted PA approaches have been evaluated and validated by students. It has been found that contrary to doubts of the sufficiency of a simplistic approach to PAs, the fairness of a PA approach does not necessarily depend on its complexity. Besides, voluntary group discussions, learning and collaboration are found to aid in improving each of the group’s camaraderie. Hence, it is recommended that academics should develop both a structured methodology to progressively encourage group members to work cohesively in teams and effective PA approaches that measure individual member’s contribution.

Exploring critical success factors for developing infrastructure projects in Malaysia : main contractors' perspective

Abstract The construction industry needs to develop methodologies and techniques to better promote quality engineering and minimize losses. This study aims to identify the Critical Success Factors (CFSs) that contribute to the successful development of infrastructure projects in Malaysia and examine their possible impact on project objectives in scope, time, cost and quality. Main contractors are usually intensively involved in the development of infrastructure projects. However, there is limited research touching on main contractors’ view on CSFs for infrastructure projects in Malaysia. Therefore, this study is carried out to explore this topic from the main contractors’ perspective. Based on an extensive literature review, 33 candidate CSFs were identified and examined. Practitioners in selected companies that had been intensively involved in infrastructure development in Malaysia were invited to participate in a questionnaire survey. The questionnaire survey was designed to elicit professional opinions of those practitioners on the significance level and the impact on project objectives of the identified candidate CSFs. A significance index (SI) was calculated to show the significance level of the candidate CSFs. This explorative study has found that the majority of the 33 identified candidate CSFs were perceived to be of critical significance by the respondents. Some of them hold particular importance to achieving project management objectives in terms of scope, time, cost, and quality. The findings may be used as a checklist so as to increase the quality and success rate of future infrastructure projects in Malaysia. Research limitations and future directions are also discussed.

Are Green Project Management Practices Applicable to Traditional Projects

As the social environment begins to create more awareness in the area of conserving the natural environment, a new generation of building has emerged. A trend of constructing buildings that minimise impacts on the environment has been established in the construction industry. Therefore, suitable project management practices have been adopted to efficiently manage the construction of these green buildings. This study aims at investigating practices of project management in traditional and accredited green construction projects, with the purpose of discovering if Green Project Management (GPM) practices can be applied to traditional projects to achieve more successful outcomes. The process of GPM contains what applied to traditional projects, could possibly result in benefits in terms of budget control and constructability. Currently the construction industry has been known to suffer difficulties within these areas; therefore GPM practices could possibly hold a solution to these common problems.

Application of Energy Performance Contracting in the Greener Government Buildings Program in Victoria: Incentives, Barriers and Strategies

The Victorian Government, through its Department of Treasury and Finance’s (DTF) Greener Government Buildings (GGB) Program, has been delivering energy saving and facility improvement projects across the State’s departments and agencies since 2009. The majority of these projects are being delivered through Energy Performance Contracting (EPC), where efficiencies created eventually re-pay the investment in the projects. The EPC market in Australia and the Energy Service Companies (ESCOs) which contract through the model is underdeveloped, in comparison to other markets. While the GGB program has been a driving force for many ESCOs entering the Victorian market, the difference in development and experience, coupled with the altered environment in which the GGB program operates means that there is a degree of uncertainty in many aspects of operating EPCs in Victoria. These uncertainties can lead to inefficiencies in delivering EPCs which may affect the decision to proceed, as well as project success. This paper seeks to understand the GGB program in the context of EPCs globally, the challenges that it faces and how they are being approached through the three main themes: (1) the incentives to stakeholders (clients and ESCOs) to be involved in the program; (2) barriers to the EPC and ESCO industry in Victoria; (3) strategies that have been adopted throughout projects, and the effect this has had on project success and stakeholder collaboration.