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Overcoming the Challenges of Building Heritage Projects: Improvements to Time, Scope and Cost Performance

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Overcoming the Challenges of Building Heritage Projects: Improvements to Time, Scope and Cost Performance OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE Submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Miljenka Perovic Bachelor Engineer in Architecture and Urbanism School of Civil Engineering and Built Environment Science and Engineering Faculty Queensland University of Technology 2015 Keywords Heritage places, heritage retention, social value of the place, management of design and scope definition, project performance, project delivery, project success, overrun causes, over budget causes, challenges of the multiple stakeholder involvement OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE i OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE ii Abstract The movement to protect the heritage of national buildings has grown enormously in many countries since the World Heritage Centre and the World Heritage list within UNECSO were both established in 1972. Many heritage organisations have since been founded with the aim to protect and manage cultural heritage, and numerous studies have supported the importance of preserving and protecting built heritage. Today, the idea of heritage building protection incorporates the protection of many cultural attributes globally. Managing heritage-listed building projects has been seen as a sensitive issue, sometimes facing criticism due to such projects often running over time and, as a result of such delays, over budget. Various research studies have been conducted to identify solutions to improve the management of the restoration and refurbishment of heritage projects. Despite the development of principles, policies and guidance, many problems still exist that affect the management of heritage projects. The aim of this research is to investigate the general and specific factors that affect the project performance and delivery of heritage building projects. The objective of the study is to determine and analyse the causes of project delays during the planning/design and execution/construction phases, while also analysing the management of multiple stakeholder relationships and the influence of technical factors during the construction phases of heritage projects. Further, the study investigates the current policies, procedures and practices and their constraints impact the project performance and delivery. This research project attempts to address the omissions of certain critical elements in the current management of the planning/design phase of the project lifecycle of heritage buildings, which negatively impact on the subsequent execution/construction phase and causes, or significantly contribute to, project cost overruns and time delays. Better stakeholder management is particularly important to facilitate interaction by, and gain involvement and approbation from, or at least prevent the negative influence of, different stakeholders. Furthermore, technical issues/factors arising from interviewed respondents have been taken into account, which needed to be further acknowledged and examined. OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE iii The original research propositions were confirmed by the research study. In particular, the study determines that the ability to influence cost savings is substantially higher at the beginning of a project. Although not a new finding, it is proven in this study to be of very high significance to the ultimate success of heritage projects. Therefore, a heavier investment in the planning/design stage of heritage projects will ultimately cost the project owner less than advancing with unresolved critical issues still encapsulated in the project. Once the on-site operation starts, the inclusion of changes such as dealing with latent conditions would cost the owner considerably more than would have been envisaged in the budget that was used to gain approvals for works and as the basis to let contracts. This research used both case studies and surveys for the data collection purposes. The data collection techniques consisted of a questionnaire, interviews, document analysis, observation and focus groups as a validation of the findings. Only Queensland heritage-listed building projects were used for the case study purposes and this might considered as a limitation. Despite that limitation, the cross- case study analysis provides an overview of the existing problems in managing heritage-listed projects within a specific region (Queensland) that appear to be transferable to other parts of Australia and outside. The survey questionnaire was widely distributed all over Australia. Therefore, data on the existing challenges in different states and territories was collected. The quantitative data was analysed using statistical analysis techniques SPSS Statistics 21 and Stata 2013 software packages, and NVivo 10 software was used to code and facilitate analysis of the qualitative data. Use of this mixed-methods approach resulted in good data triangulation of the results ensured that the research objectives were reached and the research questions answered. The study proposes “call for action” guidance, which was developed on the basis of the research findings reported in this thesis and validated by experts with more than 20 years’ experience each in heritage building projects in Australia. The proposed guidance is designed to ensure that realistic cost targets and delivery timeframes are set in future heritage projects. The evaluation of the results through an expert focus group discussion generated the final recommended actions to be included as part of the research recommendations. The need for urgent action related to the delivery of current and future heritage projects is clear, and significant OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE iv improvements in current practices are needed to overcome the problems of cost and time overruns in future heritage projects. The conclusions in the thesis answer the following research questions: RQ1. What are the main challenges that form the key reasons and make the decision on retaining existing heritage places? RQ2. What are the challenges (and their causes) in complying with policies and procedures that affect the management and delivery of heritage projects? RQ3. How can the project management process be improved for more effective management in the operation and delivery of heritage building projects? This research project summarises the current status of practices related to the research problem area, as well as detailing implications for theory and practice and offering suggestions for the future improvement around the identified issues and problem area, as well as potential directions for further research. OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE v OVERCOMING THE CHALLENGES OF BUILDING HERITAGE PROJECTS: IMPROVEMENTS TO TIME, SCOPE AND COST PERFORMANCE vi Table of Contents Keywords ...................................................................................................................... i Abstract ....................................................................................................................... iii Table of Contents ....................................................................................................... vii List of Tables ............................................................................................................. xv List of Figures .......................................................................................................... xvii List of Abbreviations ................................................................................................ xxi Statement of Original Authorship ........................................................................... xxiii Acknowledgments .................................................................................................... xxv CHAPTER 1: BACKGROUND OF THE RESEARCH ........................................ 1 1.1 Research Background ........................................................................................... 1 1.2 Research Problem ................................................................................................. 3 1.3 Research Aim and Objectives ................................................................................ 3 1.4 Research Propositions/Hypothesis ........................................................................ 4 1.5 Research Limitations............................................................................................. 5 1.6 Research Significance and Contribution to Body of Knowledge ......................... 5 1.7 Thesis Structure..................................................................................................... 6 CHAPTER 2: LITERATURE REVIEW ................................................................. 7 2.1 Introduction ........................................................................................................... 7 2.2 The ‘treasure’ of heritage places ........................................................................... 7 2.2.1 What is heritage? .................................................................................. 7 2.2.2 What is the importance of preserving heritage places? .......................
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