Performance Based Studies Research Group

-Abstract-

Misunderstanding of how the construction industry structure works can lead to unseen costs, inefficiencies, higher construction costs, poor results from training programs, and lower value. A deductive based Construction Industry Structure (CIS) analysis was first introduced in 1992. Continual testing of the model in the best value environment and past industry performance in the low bid environment has given deductive validation of the CIS model. Misunderstanding of the CIS may have led to the failure of construction management (CM) research to correct industry issues. CM education/research has become isolated from the construction industry. CM proposes solutions that are management based (control, direction, and inspection). The deductive logic of the CIS identifies the traditional management approach as reactive, inefficient and ineffective in the more developed manufacturing sectors. Traditional CM claims the construction industry is different from all other industries in complexity and uniqueness of construction projects. The assumption is based on observation and inductive logic, and is almost impossible to validate through inductive testing. The traditional inductive logic/testing procedure of validating a theory from observations through testing has not been accomplished. The authors propose that the inductive testing and data requirement is unsupportable by the industry. The authors propose that researchers go back to basic deductive logic, common sense, dominant simplistic models, and deductive testing to increase the efficiency of the construction industry. CIS identifies the construction industry problem as a structural misalignment and a systems issue, and not a unique technical issue. The authors use logic, deductive test results, and results from other industries to validate the proposal.

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-Abstract-

In tough economic times, the construction industry participants seek for efficiency, value, "win-win," low cost, maximized profit, and best value. In tough economic times, the problems of the industry are magnified, as construction services are commoditized. Analysis of the Construction Industry Structure (CIS) shows that a stable construction industry should maximize value, vendor profit, quality and performance, while minimizing cost and risk.  PBSRG has been testing out the CIS concepts for 15 years on over 600 tests ($650M of construction services) with dominant results: 98% on time, on budget, and meeting client expectations, minimizing up to 90% of client risk/project management functions. Movement from the low bid award environment to a best value environment will lower costs and increase profits. The answer lies in the transfer of risk and accountability to the industry participants who have the expertise to minimize risk (and not pass risk.)

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-Abstract-

The traditional contracting/delivery system in Botswana, introduced by the US, UK, and European educators, consultants, and practitioners, has not been working well in Botswana. The poor project delivery system results have forced the organization of a new group, the Government Implementation Coordination Group (GICO) to attempt to solve the problems.  In the fall of 2008, the University of Botswana (UB), through the US State Department sponsored Fulbright program, brought professor Kashiwagi, and the best value Performance Information Procurement System (PIPS) technology, the Information Measurement Theory (IMT), and the Industry Structure Analysis to the UB project management section. This paper proposes that the client’s professional representative requires a new, more effective role. The role includes using performance information, transforming the client’s expectations into a design/construction intent by using expert vendors, ensuring the vendors manage and minimize the risk that they do not control, outsourcing the technical responsibilities, and doing quality assurance instead of quality control. This paradigm will minimize project risk, maximize project value, and increase the professionalism of project management, construction management, and quantity surveyors. These concepts will be tested on three test projects in Botswana.

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-Abstract-

This paper discusses the importance of leadership skills and how improving one’s leadership abilities will lead to improved personal and organizational performance. It connects the individual’s skills to organizational leadership and shows how that improves the company’s performance. It provides data about leadership in construction, collected from industry professionals as well as curriculum topics used in leadership seminars, and shows how these topics were developed. It recommends that Construction Management programs have stand alone courses in leadership and conduct research on CM leadership topics. The paper concludes with the authors’ version of curricula in developing leadership abilities in courses and industry seminars.

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-Abstract-

Construction management education/research is oriented to highlight construction management as the focal point of increasing construction performance. The professional (owner’s engineer, construction manager, quantity surveyor) is the key individual. Their function is to manage the construction through more efficient scheduling, cost control, decision making, and coordination.

The authors propose that this is inefficient and has an overall impact of confusing responsibility and lowering construction performance. As project/construction management is embedded as a part of an overall delivery process, no research has identified the current paradigm as a major source of construction nonperformance. This paper proposes that, based on research results of the Performance Information Procurement System (PIPS), the optimal practice of the client’s project/construction management is when the manager performs before the construction event, and sets in place a structure that forces experienced contractors to practice quality control before construction to minimize risk. The authors also propose that the more construction management functions are performed during construction, the more inefficient and problematic the project manager becomes. Other results of the new paradigm include the minimization of information flow between the contractor and client’s representative, minimization of decision making and inspection by the project manager during construction, and minimization of project management documentation.

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