Construction Nonperformance is a Process Problem

29 Jan Construction Nonperformance is a Process Problem

By Dean Kashiwagi, Charles Egbu, Herman Koebergen

March 2010

Abstract
For the past 30 years construction nonperformance has been identified as a project specific problem caused by unique project conditions. Construction differs from other manufacturing processes due to the on-site construction. The major emphasis to improve construction performance has been to use construction management tools including construction management, performance standards, and prequalification. The results of these efforts have been inconsequential, forcing the CIB to re-identify the value of construction activities. Information Measurement Theory (IMT) proposes that construction nonperformance is not a construction industry generated problem, but a process issue caused by non-value added functions, which have been institutionalized by those with vested interests. This research proposes that the solution to construction nonperformance is process based. The process uses performance information and the application of Six Sigma principles. The concept is being tested by the City of Peoria in Arizona (USA) in both the performance based and price based sectors. This paper reviews the hypothesis and theoretical solutions of the City of Peoria.