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Systemic Innovation in the Management of Construction Projects and Processes SystemicSystemic InnovationInnovation inin thethe ManagementManagement ofof ConstructionConstruction ProjectsProjects andand ProcessesProcesses Abdul Samad (Sami) Kazi Combining Forces • Advancing Facilities Management & Construction through Innovation Series Systemic Innovation in the Management of Construction Projects and Processes Edited by Dr. Abdul Samad (Sami) Kazi Senior Research Scientist, VTT • Technical Research Centre of Finland Copyright © 2005 VTT – Technical Research Centre of Finland, and RIL – Association of Finnish Civil Engineers All rights reserved. No part of this publication or the information contained herein may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, by photocopying, recording or otherwise, without written prior permission from the publishers or in the case of individual chapters, from the author(s) of that chapter. Although all care is taken to ensure the integrity and quality of this publication and the information herein, no responsibility is assumed by the publishers or the authors of individual chapters for any damage to property or persons as a result of operation or use of this publication and/or the information contained herein. Published by: VTT – Technical Research Centre of Finland (www.vtt.fi), and RIL – Association of Finnish Civil Engineers (www.ril.fi) ISBN 952•5004•64•3 Printed in Finland Table of Contents Table of Contents...............................................................................................iii Preface..............................................................................................................vii Section I: Managing Projects • Methods and Practices Briefing for Arts Construction Projects: Capturing the Needs of Arts Clients..... 2 Peter Barrett, University of Salford Alan Short, University of Cambridge Pat Sterry, University of Salford Monty Sutrisna, University of Salford Zeynep Toker, University of Cambridge Project Diagnostics – Assessing the Condition of Projects and Identifying Poor Health............................................................................................................... 16 John Tsoukas, Arup Project Management Documenting the Real Causes for Delay in Highway Construction Projects.... 28 Junyong Ahn, University of Florida R. Edward Minchin Jr., University of Florida Zohar. J. Herbsman, University of Florida Benchmarking Project Management in the United Kingdom: Developing the Measuring Instrument....................................................................................... 43 Chris Fortune, Heriot•Watt University Mel Lees, University of Salford Process Oriented Integrated Management System • Development and Implementation................................................................................................. 55 Jarkko Muurimäki, Skanska Talonrakennus Oy Kaisa Kekki, Skanska Oy Project Management as a Synergic Competence for a Construction Corporation ...................................................................................................... 69 Jani Kiistala, YIT Corporation Construction Project Cost Management Tools In•use: a UK Perspective ........ 81 Chris Fortune, Heriot•Watt University Mark Grant, Heriot•Watt University Section II: Product Processes and Control Introducing Last PlannerTM: Finnish Experiences............................................ 95 Anssi Koskenvesa, Mittaviiva Ltd Lauri Koskela, University of Salford iii Case Studies of Using Flowline for Production Planning and Control ........... 108 Russell Kenley, Unitec New Zealand Olli Seppänen, Dynamic System Solutions Ltd. Procurement Strategies for Dynamic Control of Construction Projects and Supply Chain.................................................................................................. 122 Jelle Koolwijk, Delft University of Technology Ruben Vrijhoef, Delft University of Technology Procurement Methods are Not Set•up for Lowest Cost!................................. 135 Jan A Elfving, Helsinki University of Technology Barriers and Opportunities for Offsite in the UK............................................. 148 Chris I. Goodier, Loughborough University Alistair G. F. Gibb, Loughborough University Serviceable Foundation with Truss Structure ................................................ 159 S.P.G. (Faas) Moonen, Eindhoven University of Technology Section III: Productivity and Performance Improvement Is Performance • Based Procurement a Solution to Construction Performance?................................................................................................. 172 Dean Kashiwagi, Arizona State University John Savicky, Arizona State University Kenneth Sullivan, Arizona State University Jacob Kovel, Central Connecticut State University David Greenwood, Northumbria University Charles Egbu, Glasgow Caledonian University What do Construction Workers do? Direct Observations in Housing Projects .......................................................................................................... 184 Jesper Strandberg, Peab AB Per•Erik Josephson, Chalmers University of Technology Variable Labor Productivity Unit Rate: Evaluation by Professionals.............. 194 Ubiraci Espinelli Lemes de Souza, University of São Paulo Fernanda Fernandes Marchiori, University of São Paulo Luis Otávio Cocito de Araújo, University of São Paulo Evidence•based Improvement on the Royal Bank of Scotland, Gogarburn Construction Project....................................................................................... 204 Glenn Hawkins, BSRIA Limited Predrag Nesic, BSRIA Limited Scientific Benchmarking of Building Projects – Model & Preliminary Result.. 215 Thorbjørn Ingvaldsen, NBI – Norwegian Building Research Institute The Motivation of Masons in the Sri Lankan Construction Industry ............... 229 Leyon Nanayakkara, University of Reading Stuart Green, University of Reading iv Measuring Productivity on Project Level ........................................................ 240 Antti Lakka, VTT – Technical Research Centre of Finland Section IV: Project Delivery Systems & Contractual Practices Experience on a PPP•based High Speed Road Maintenance Project in Hong Kong............................................................................................................... 251 S Thomas Ng, The University of Hong Kong Yoki M.W. Wong, The University of Hong Kong Mohan M. Kumaraswamy, The University of Hong Kong DBB, DB or DBM? Performance of Road Project Delivery Methods .............. 263 Tiina Koppinen, VTT – Technical Research Centre of Finland Pertti Lahdenperä, VTT – Technical Research Centre of Finland Advanced Design Management as Part of Construction Management (CM) . 272 Juhani Kiiras, Helsinki University of Technology Matti Kruus, Indepro Construction Management Consultants Ltd Advancing Building in Finland through Special Systems Contracting (SSC). 284 Teppo Salmikivi, University Of Helsinki Minimizing Elements of Control of a Construction Contractor........................ 296 Jay Baretta, Central Connecticut State University Jacob Kovel, Central Connecticut State University Kenneth Sullivan, Arizona State University Marie Kashiwagi, Arizona State University Dean Kashiwagi, Arizona State University Appraisal of Subcontractor Performance – Criteria and their Importance...... 305 S. Thomas Ng, The University of Hong Kong Wai Yin Wan, HKSAR Government Delivery Systems as Service Processes in Building Projects ........................ 315 Pirjo Pernu, YIT Rakennus Oy Developing the Decision•making of Step•in Rights for BOT Projects............. 326 Chiu Wei Sung, National Taiwan University S. Ping Ho, National Taiwan University Section V: Risk Management CM•at•Risk Delivery System And The Miami Intermodal Center.................... 339 R. Edward Minchin Jr., University of Florida Ralph D. Ellis Jr., University of Florida Poor Quality Costs in the Swedish Central Government Budget: the Influence on Costs For Construction Projects................................................................ 352 Per•Erik Josephson, Chalmers University of Technology Lasse Saukkoriipi, Chalmers University of Technology, v A Risk Breakdown Structure for Public Sector Construction Projects............ 358 Marie Dalton, The University of Mancheste Factors Affecting the Complexity of Construction Projects............................. 370 Leung W T Arthur, City University of Hong Kong Tam C M, City University of Hong Kong Risk Management in Small Sized Construction Projects................................ 383 Kajsa Berggren, LTU – Luleå University of Technology Using a Construction Process for the Risk Identification ............................... 394 Anita Ceric, University of Zagreb Peter Brandon, University of Salford Breakeven Analysis for Selecting Construction Methods: Precast vs. Cast in Place Concrete............................................................................................... 405 Ibrahim Al•Hammad, King Saud University vi Preface In an industry that is dominated by one•of•a•kind projects involving competence sharing between different organisational entities, and thin profit margins, a key challenge in the new global economy is to ensure delivery of projects that are on time, within the cost limits, of high levels of quality, sustainable, and provide value to the customer. All this, while ensuring that contractors remain profitable without raising project costs. This calls for systemic innovation in the management
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