Construction in the 21 st Century - CITC- 8 Workshops

Proceedings of the

Third International Conference on

Construction in the 21st Century Advancing Engineering, Management and Technology September 15-17, 2005 Athens, Greece

Editors

Syed M. Ahmed Irtishad Ahmad John-Paris Pantouvakis Salman Azhar Juan Zheng

Organized by Department of Construction Engineering & Management Faculty of Civil Engineering National Technical University of Athens (NTUA) Athens, Greece

and Department of Construction Management Department of Civil and Environmental Engineering Florida International University Miami, Florida, USA

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© 2005 by CITC-III Greece. All rights reserved. No part of this book may be reproduced in any form, or by any means without written permission from the editors. The views expressed in the papers are of the individual authors. The editors are not liable to anyone for any loss or damage caused by any error or omission in the papers, whether such error or omission is the result of negligence or any other cause. All and all such liability is disclaimed. The proceedings includes a copy protected CD attached on the back cover. The CD contains the conference abstracts, the full versions of the papers and other related information. Adobe Acrobat Reader® is needed (can be installed through the CD if not present in your system). No other special installation is required. More detailed information is available on the CD as readme text files. ISBN: 960-254-655-7 September 2005 Printed in Greece.

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Foreword The total value of construction put in place in the year 2004 around the world has been unofficially estimated at any where between 3.0-3.5 trillion dollars. Globally, the construction industry is regarded as one of the largest and most fragmented industry accounting for 10-12% of GDP in many countries. It is the second largest industry in the USA, behind health services, and the largest product producing industry. It employs more than 6.4 million people in the USA and the assessed annual construction in USA has now exceeded one trillion dollars. The annual value of construction put in place in Western Europe is around 750-800 billion dollars per annum now which is expected to cross the one trillion dollar mark soon. In the light of the above, the mission of the CITC series of conferences is to bring together all the stakeholders to take a fresh look into how construction education, research and practice should be conducted to meet the challenges and opportunities of the twenty first century. The construction industry is poised to make great advancements in the way we build and manage our projects in the twenty first century. Technological advances have created an unprecedented window of opportunity for different professionals to pool their expertise for the common good of all. Public and private sector involved in construction should forge new and innovative alliances to take a hard look into the ways construction projects are organized and managed. They should scrutinize the manners in which techniques are employed, and should reconsider the mindsets in which principles are based. It is imperative that we, as educators, researchers, and professionals involved in the construction industry carefully examine techniques and principles that are in use and develop a vision for bringing changes in the future. CITC-I was held in Miami in April of 2002 and CITC-II in Hong Kong in December of 2003. Both these conferences were extremely successful. Just like the previous two conferences, this effort has also been extremely well supported by our friends, colleagues and well wishers from across the world. We now present to you the Third International Conference on Construction in the 21st Century: Advancing Engineering, Technology & Management (CITC- III, Athens). This two and a half day conference is being held in Athens at the Divani Caravel Hotel from September 15-17, 2005. This event has brought together construction professionals, educators and researchers representing educational institutions, government agencies, contracting organizations, engineering consulting companies, financial institutions and other organizations from around the world representing thirty countries. We proudly present one hundred and fifty one peer-reviewed papers in the proceedings. It is our intent to organize the CITC series of conferences worldwide at regular intervals. We sincerely hope that you will continue to support this effort. Thanks and best regards. Syed M. Ahmed Irtishad Ahmad John-Paris Pantouvakis Salman Azhar Juan Zheng Athens, Greece, 2005

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Contents Foreword Contents

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Keynote Lecture 1: Monitoring Infrastructure Development: The case of Greek Railway Network John Golias Keynote Lecture 2: Construction Safety in the 21st Century Jimmie Hinze

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Keynote Lecture 3: Searching For Effective Project Managers Skills, Knowledge and Measurement Miles Shepherd

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Keynote Lecture 4: Managing Intangibles – The Latent Dimension for Achieving Project and Corporate Competitiveness in Construction Ronald McCaffer and Francis T. Edum-Fotwe

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Invited Presentation 1 : Presentation of the Hellenic Construction Economics Institute Hellenic Construction Economics Institute

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31 Invited Presentation 2 : Athens Metro base project and extensions - Project structuring and management characteristics George Leoutsakos

Topics and Sub-topics (abstracts only) 1.

Cost Engineering and Financial Issues

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1.1 1.2

Cost and Financial Management Decision Making and Risk Analysis

38 43

2.

Construction Project Management

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2.1 2.2 2.3 2.4 2.5

Safety and Quality Management

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Partnership and Contractual Issues Project Management Issues Project Planning and Control Construction Education and Training

53 57 62 64

3.

Information Technology and Information Systems in Construction

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4.

Construction Technology

76

4.1 4.2

Innovative Construction Technology and Techniques Sustainable Construction Techniques Additional Papers

76 83 86

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Third International Conference on Construction in the 21st Century (CITC-III) “Advancing Engineering, Management and Technology” 15-17, September 2005, Athens

Keynote Lecture 1

Monitoring Infrastructure Development: The case of Greek Railway Network Prof. John Golias Secretary General, Ministry of Transport and Communications, Greece

Abstract The paper presents the monitoring system developed for the supervision of the large-scale railway infrastructure projects currently carried out in Greece. The objective of the paper is to not only to describe the system implemented to cover the specific needs but also to propose ways of improving the monitoring and administration processes in order to maximize the expected results. In the first part the paper briefly presents the Greek railway infrastructure development programme, which is being implemented for the period 2000-2006. In the second part the paper describes the monitoring system developed to cover the programme’s needs focusing on the bodies involved in the monitoring and control process. Finally recommendations on ways to improve the system’s performance are suggested

Keywords Railway infrastructure development, Greece, monitoring system 1. Introduction During the past years Greece has invested considerable amounts of funds for the development of the railway infrastructure along the main transport axes of the country. The main objectives of this development are: ƒ to strengthen the competitiveness of the Greek economy by improving the country’s transport connections with the other European countries and to facilitate trade ƒ to improve the transport links within the country for the benefit of the less developed regions and to facilitate the economic and social cohesion An important factor for the accomplishment of the above-mentioned objectives has been the financial aid that Greece has received as a Member State of the European Union. In order to promote the development and structural adjustment of less developed regions and to facilitate the economic and social cohesion within Europe, the European Union has decided, among others, to economically assist regions whose per capita GDP is less than 75% of the Community average. This assistance of “Community Structural Funds”-better known as the Community Support Framework (CSF) for Greece- has been a considerable aid for the Greek economy in its effort to maintain cohesion and balanced development within Europe. Since 1989 Greece has received financial aid under the 1st and 2nd CSF, while the current period (2000-2006) covers the 3rd CSF, which has an overall European Contribution of EUR 22 billion. Complementary to the structural funds Greece also benefits from the “Cohesion Fund”, which was set up by the Treaty of Maastricht to help those Member States whose per capita GNP is less than 90% of the Community average (namely Greece, Ireland, Portugal and Spain) to adjust to the challenges of economic and monetary union by part-financing projects in the fields of the environment and trans-European transport infrastructure. In 2000-06 Greece should receive approximately EUR 3.500 billion under this fund. The Greek CSF 2000-2006 aims to contribute to Greece’s further integration in the EU and in the knowledge-based world economy by promoting structural change, higher productivity and employment.

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Productivity is the key factor determining a sustainable long-term growth rate and thus the conditions for improved living standards. CSF priorities are focused on the types of investment in physical, human and knowledge capital that are most conducive to increase Greek productivity. This strategy is expected to create the conditions for sustained high growth rates leading to real convergence with the rest of the EU in terms of GDP per capita. Among the priorities included in the framework of CSF 2000-2006 is the investment in transport infrastructure, which aims at reducing peripherality vis-à-vis the rest of Europe, and at reducing transaction costs. Within this context Greece has elaborated a programme for the development of the country’s transport infrastructure, which covers various modes namely roads, railways, ports and airports. The implementation of the railway infrastructure development falls within the authority of the Ministry of Transport and Communications (MoT), which has the responsibility of the programme’s performance.

2. The railway infrastructure development programme The main objective of the railway transport development strategy is to complete the national railway line Patras - Athens - Thessaloniki - Eidomeni – Promaxonas (PAThEP), which is the main connection in the North-South direction and to link it to the country's main ports (Patra, Piraeus, Thessaloniki) and the European railway network. Priority is being given to the revitalisation of railways in order to achieve the following: ƒ Construction of national networks on the basis of interoperability and safety in order to enable the realisation of their trans-European dimension. ƒ Upgrading of operation and reliability, together with an increase in railway speed. ƒ Decongestion of the road network and protection of the environment by increasing the relative share of railways in the carriage of goods and passengers. ƒ Development of the country’s domestic interconnections in order to facilitate regional development and economic cohesion. ƒ Reducing the isolation of remote regions. ƒ Improving links with central markets, in order to ensure cohesion within the EU. ƒ Improving the railway network’s interconnection with other modes of transport by promoting combined transport, in particular at ports, airports and other transit centres for goods and passengers in the urban centres of Athens and Thessaloniki. The interventions concerning rail transport comprise the following: Upgrade and construction of Athens – Thessaloniki line consisting of a high speed double-track, standard gauge, electrified, high-speed, railway line, having a total length of 520 km, equipped with modern signalling and remote management systems. The line will enable maximum speeds up to 200 k.p.h., reducing the travel time from 5 hr. 30 min. to 3 hr. 50 min.

Construction of Athens – Patras railway line, consisting of a new double-track, standard gauge, electrified, railway line, having a total length of 200 km., equipped with modern signalling and remote management systems. The line will enable maximum speeds of approximately 160-200 k.p.h., reducing the travel time from 4 hr. 30 min. to 2 hr. 30 min. Development of Athens Suburban Railway with the ultimate aim of its radial expansion towards W. Attica, Corinthia, N. Attica – Boeotia – Euboea and ‘Eleftherios Venizelos’ international airport. Construction of the “Thriassio Pedio” freight depot complex. It includes a marshalling yard, container terminal, customs facilities, cargo depot, goods warehouses, a fan of sidings for placing wagons with dangerous cargoes, a washing plant and auxiliary buildings to facilitate the above activities. The connecting line with the Acharnes Railway Centre (ARC) includes the construction of a new double-track line with a length of approximately 7 km. between the Liossia station and Thriassio Pedio. The decision also provides for 2

the construction of two railway stations, the superstructure works and the electrification and signalling of the ARC – Thriassio Pedio line. Construction of the rail link between the port of Neo Ikonio and the “Thriassio Pedio” complex. The

project involves the construction of a new single-track railway line with a length of approximately 17 km. and a speed of 90 k.p.h. Upgrade of the Thessaloniki – Strymonas – Promachonas section (electrification). All the above-mentioned interventions have been included in the relevant Operational Programme (OP) of the MoT. The development of an OP with the inclusion of projects has been a prerequisite for the eligibility of the projects to Community funding. In this context the Greek MoT has developed the OP “Railways, Airports, Public Transport” (RAPT), with the following strategic objectives: 1. To expand and improve the quality of transport services provided in Greece. 2. To further develop the country's international interconnections in order to better meet transport demand. 3. To develop the country's domestic interconnections in order to facilitate regional development and economic cohesion. 4. To improve safety conditions in transport. 5. To reduce adverse impacts on the environment and save energy. 6. To enhance the identity of large urban centres and attain quantitative and qualitative improvement of urban and suburban public transport. 7. To integrate the various means of public transport into transport networks The above general objectives are closely intertwined and compatible with the policy adopted for the long-term development of the country’s transport, as well as with the priorities set by the European Commission regarding the improvement of transport infrastructures. The works of the railway infrastructure included in the OP RAPT practically realise the Trans European Railway network in Greece, the development of which constitutes a high priority at both national and European level. The total cost for the completion of this network exceeds EUR 3.5 billion, as indicated in the following table: Table 1: Trans European Railway network in Greece PROJECT DESCRIPTION 1. Athens – Patras railway line, Thriassio Pedio complex and rail

link to Ikonio port 2. Piraeus – Athens – Thessaloniki – Eidomeni railway line

TOTAL COST 1,500M€ 1,300 M€

3. Attica Suburban Railway

600M€

4. Thessaloniki – Eidomeni railway line (a 20 km long new section)

110 M€

5. Thessaloniki – Strymonas – Promachonas section (electrification)

40M€

GRAND TOTAL:

3,550M€

3. System for monitoring the CSF and OPs As mentioned above, the development of an OP has been a first precondition for eligibility to Community funds. Apart from that, the eligibility process includes a number of activities, the supervision of which required the development of a monitoring system capable of handling the some 3

times complex and bureaucratic procedures. The CSF 2000 – 2006 inherited a great deal of experience from the previous period (CSF 1994-1999), which finally led to more detailed and 1 systematic procedures. Within the legal requirements set out by the European Commission , CSF 2000-2006 has strengthened the process already implemented in CSF 1994-1999, in order to improve the efficiency and transparency of action implementing bodies and ensure a sound financial management at every level of government. Problems and difficulties were initially encountered in the adaptation to the new implementation and monitoring system. Significant progress has however been achieved especially regarding project selection and approval procedures and the streamlining of the procedures for monitoring and control. The whole process has been implemented by a number of bodies that realise the monitoring and control system of the 3rd CFS and especially the OP RAPT. These bodies constitute the programme contributors and they are described in the following. 3.1 Programme Contributors European Union

Without doubt the main player in the whole implementation process is the European Union itself through the two funding mechanisms that contribute to the realisation of the programme: The European Regional Development Fund – ERDF, has the aim to reduce the gap between development levels and living standards among the regions and the extent to which least-favoured regions are lagging behind. The Cohesion Fund 2000-2006, which contributes to the support of economic and social cohesion of the Union, finances those member states whose per capital GNP is less than 90% of the Community average. Only projects related to environment sector and the trans-European transport networks are eligible under the Cohesion Fund Ministry of Economy and Finance (MEF)

The MEF has the responsibility of monitoring and controlling of the whole CSF for Greece.During the period 1994-99, a series of reforms were introduced in fund management in the area of public works, which resulted in the development of new mechanisms for the next period, 2000 – 06. In this context, at CSF level, a Managing Authority was established within the Ministry of Economy, which is the general co-ordinator of all Structural Fund interventions. The CSF Managing Authority is responsible for the efficient management and implementation of the CSF and for the coordination of the Managing Authorities, which were also designated for all Operational Programmes. All Managing Authorities belong to their respective Ministry or Regional Administration. The Management Organisation Unit (MOU) provides them with the necessary administrative and financial support. The CSF Managing Authority systematically supports the OP Managing Authorities and represents the country in the European Union. All Managing Authorities are under the surveillance and the control of the corresponding Monitoring Committees. The CSF Monitoring Committee is chaired by the Minister of Economy. Its members are (among others) the chairmen of the OP Monitoring Committees and the representatives of the CSF managing authority and the paying authority. The OP monitoring committees are chaired by the Secretary General of a Ministry or of a Region and they include representatives of all involved parties. The Managing Authorities conduct the first level of audit (internal audit). Paying Authority A single paying authority for all Structural Funds and for the Cohesion Fund is set up in the Ministry of Economy, with a clear separation of tasks from those of the CSF Managing Authority. This authority is responsible for monitoring the financial flows, for drawing up payment applications and for receiving payments from the European Commission. It also ensures payments to the final beneficiaries in the least 1

Regulation (EC) n°1260/99

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amount of time and in full. It is subject to external controls and, in case of irregularities, subject to financial corrections. Payment information is controlled and registered in the CSF Management Information System by the each respective OP managing authority. The paying authority checks and verifies this information before submission of payment applications to the European Commission. The Paying Authority conducts the second level of audit (external audit). Financial Control Committee The Financial Control Committee is a special unit of the Ministry of Economy that conducts the third level of audit. This body ensures the co-ordination of all the auditing levels and performs checks operations on an appropriate sampling basis (min 5%) of total eligible expenditure. Ministry of Transport and Communications According to the structure described above, the MoT has created of two bodies that manage and control its Operational Programme (OP RAPT). The OP RAPT Monitoring Committee and the OP RAPT Managing Authority. “Railways, Airports, Public Transport” Monitoring Committee The Monitoring Committee ensures and monitors the effectiveness and quality of the implementation. To that end: it confirms or adjusts the programming complement, it considers and approves the criteria for selecting the actions financed under each measure, it periodically reviews progress made towards achieving the programme’s objectives, it examines the results of implementation and approves the annual and final implementation reports before they are sent to the Commission. “Railways, Airports, Public Transport” Managing Authority The Managing Authority of the OP RAPT was established by virtue of a joint Ministerial Decision of the Minister of the Interior, Public Administration and Decentralisation, the Minister of National Economy and Finance and the Minister of Transport and Communications. The Managing Authority comes under the General Secretary of the Ministry of Transport and Communications. It is responsible for the efficiency and correctness of the management and implementation of the Operational Programme. In this framework, the Managing Authority ensures compliance with Community policies and provides every possible support to the Final Beneficiaries. The RAPT Managing Authority, in cooperation with the CSF Managing Authority, is responsible for the adjustment, evaluation, supervision and the examination of the programme implementation. Final Beneficiaries of Operational Programme RAPT All the bodies described above cover authorities and tasks regarding the management, control and audit of the projects. The actors that are directly related with the physical realisation of the projects are the so-called “Final Beneficiaries” who are the final receivers of all payments and have the responsibility of the works’ progress. For the OP RAPT, regarding the development of the railway infrastructure the final beneficiaries are the Hellenic Railways Organisation (OSE) which is the owner of the railway infrastructure and provider of rail transport and the ERGA OSE S.A., a subsidiary company of OSE, which was set up in 1996 for implementing its co-funded by the CSF and Cohesion Fund Investment Programme.

4. Improving the monitoring process The experience of the implementation of the OP has proven that managing such a large-scale programme requires a continuous effort, which incessantly aims at improving the performance of the system and its effectiveness. It is practically impossible to achieve maximum productivity when a large number of bodies are involved and a considerable number of necessary but also bureaucratic procedures must be followed. Therefore the pursuit for improved ways of managing the available funds is an ever-lasting process. The effect of the various administrative procedures on the programme’s implementation progress seems to be more important than initially expected. Although the programme includes complex technical works, such as long railway tunnels and bridges, the technical aspects have not been the crucial factor for the on time completion of the works. It has been estimated that almost 80% of the delays occur during the procedures

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before the signature of the contract and the beginning of the works. It is therefore evident that there is a need for simplification of the administrative and legal procedures, which derive from both the national legislation and the Community rules. In order to maintain control of the programme it is important that a systematic monitoring procedure is performed at project level. Several indicators can describe the work progress in every stage of each project and provide an overall picture for the whole programme but also for the specific condition of each individual project. When managing a variety of projects, differences in progress and development should be expected. The aim of the managing authority is to maximize the performance of the whole system, identifying the projects that really need support in order not to lag behind. Such an approach requires frequent technical meetings with the final beneficiaries, even on a monthly basis, according to the progress of the works. It is also possible that external help from individual consultants may be needed on aspects that need expertise beyond the capabilities of the final beneficiary. In addition frequent controls must be performed in order to ensure eligibility of EU funds throughout the implementation of a project. It is without doubt that lack of controls will lead to the adoption of procedures contradictory to those indicated by the EU funding rules and consequently to loss of refunding. Another important feature in the implementation of the OP is the similar nature of the projects involved. Despite the fact that each project has its own special characteristics and difficulties to overcome, they all refer to railway infrastructure development; therefore there is a large number of repeating processes from the stage of studying the project until the tendering procedure and the actual construction. For that reason the standardisation of the various procedures can be achieved and will result in the minimization of the time needed for the completion of the necessary processes. Even bureaucratic structures can easily carry out repeating procedures and this factor can save precious time in all stages of the programme development. Taking into account the uncertainties that such a large-scale programme includes, an in depth risk analysis is important in order to determine those projects/works that may jeopardise the absorption of funds. This risk analysis should study the possible implications that may arise, in case a specific project fails to meet the predefined timetable or budget or even the criteria for funding. To deal with such cases, alternative scenaria should be prepared in advance in order to avoid the possible lose of funds. The existence of additional projects, mature enough to be funded, can be a very good solution for dealing with the unavoidable uncertainty of multi-project programmes. In this context the project selection process would benefit if small-scale projects were not subjected to the same degree of scrutiny as large projects. There is a need to introduce a more flexible and simplified approach to the assessment, implementation and monitoring of small projects in order to speed up their take up and reduce the burdens on small scale project developers. Special attention in the monitoring procedure must be paid with regard to the collection and management of the various data. The systematic monitoring should be conducted on the basis of a developed management information system that can generate useful information from the collected data for the benefit of the programme. To this extent, the exploitation of the historical data can provide a precious assistance in the planning process of future projects with regard to their cost and time requirements.

5. Conclusions In order to implement its railway infrastructure development programme Greece is heavily dependent on the European Union funds, which have been an important aid in the country’s effort to reduce the effects of its peripherality. In order to receive these funds Greece has to comply with certain Community funding rules and procedures, in addition to its own legal and institutional framework for public works. Past experience on Community funding has resulted in very detailed and systematic monitoring and control processes, aiming to guarantee transparency and effective use of funds. These procedures have in general terms achieved their goal; A number of very important railway infrastructure projects has been completed and

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various other projects are under construction or under planning, creating a modern railway network that facilitates trade and economic development. The implementation, however, of such composite and time consuming procedures, with the involvement of a number of bodies, result in complex procedures that have affected the overall progress of the programme. In order to avoid negative effects and to maximize the effectiveness of the whole system a continuous effort is required at administrative and institutional level. The required improvements, at this level, focus on a systematic monitoring and control process in combination with the simplification of the necessary procedures. Methodical data collection and elaboration as well as external assistance when required can also contribute to the realistic planning, programming and implementation of the programme.

6. References Ministry of Transport and Communications (1999 - 2000), Operational Programme “Railways, Airports, Public Transport” Managing Authority of OP RAPT (2001), Programme Supplement of the OP RAPT Managing Authority of OP RAPT (2003), Mid-term Evaluation of the OP RAPT Managing Authority of OP RAPT (2005), Update of the Strategic Investment Programme of the PATHEP railway axis

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Third International Conference on Construction in the 21st Century (CITC-III) “Advancing Engineering, Management and Technology” 15-17, September 2005, Athens

Keynote Lecture 2

Construction Safety in the 21st Century Jimmie Hinze M. E. Rinker, Sr. School of Building Construction, University of Florida, USA

Introduction Even though there have been safety performance improvements in recent years, the construction industry continues to have a dismal record. In the United States construction industry, an average of just under seven Occupational Safety and Health Administration (OSHA) recordable injuries are incurred for every 200,000 hours of worker exposure, a value considerably above that of other industries. The quest for zero injuries consists of a long journey, but progress is being made.

Safety in the Past 200 Years To properly understand the direction that safety is taking, it is important to understand how safety has evolved. Worker safety will be examined briefly by considering the major historical developments of the past two centuries. Particular focus will be on the protection afforded workers and the roles that differing parties in the industry played. In the 19th century, the United States was prospering as a result of the Industrial Revolution. This was made possible by numerous inventions that were made late in the 18th century and during the 19th century. For example, some notable innovations included the work of Edmund Cartwright who invented the power loom, James Hargreaves who invented the spinning jenny, Gervinus who invented the circular saw, Andrew Meikle who invented the threshing machine, Eli Whitney who invented the cotton gin, Henry Maudslay who invented the first metal or precision lathe, George Stephenson who designed the first steam locomotive, Joseph Aspdin who patented Portland cement in 1824, and Alfred Nobel who invented dynamite. These innovations and numerous other developments contributed to increasing the productivity of the American workers. The workplace changed considerably during the Industrial Revolution. With machinery doing considerably more work than the workers who tended to them, the productivity of American workers improved remarkably. This led to physical conditions that often put the workers at risk. Worker injuries were commonplace. Who paid for the worker injuries? Ideally, the industrial employers were responsible for the injuries sustained by their employees, the judicial system offered considerable defenses to them. The three common law defenses (assumption of risk, contributory negligence and fellow worker doctrine) often resulted in no compensation being provided to injured workers. This left many injured workers with no recourse for being compensated for their personal losses. Because of the increased probability of injured workers being subjected to financial hardships, it was soon apparent to lawmakers that workers were entitled to greater assurances that they would not have to bear the financial burden of their own injuries. The concept of having industry being responsible for covering the losses resulting from on-the-job injuries was once again being examined. While no federal laws were passed to address this issue, individual states began to enact laws, commonly known as workers’ compensation laws. Workers’ compensation laws were passed in all fifty states between 1900 and 1950. In the middle of the 20th century, the United States economy converted from its wartime efforts to the production of consumer products. The Great Depression and World War II had been responsible for denying many Americans of what soon became necessities in the home. As the industry was responding to the need for consumer goods, the construction industry was similarly responding to the increased need for its services.

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While workers’ compensation laws provided coverage for workers who were injured at work, there was little done to prevent workers from being injured at their places of work. The death rate in the industrial workforce, including that of the construction industry, was alarming and eventually resulted in the passage of the Occupational Safety and Health Act (OSHAct) of 1970. The OSHAct was broad in its coverage and basically guaranteed every employee the right to a safe and healthy place to work. This resulted in the development of a set of safety regulations for general industry and a separate set of regulations for the construction industry. Statistics showed that the injury and death rates of workers declined significantly in the 1970s. This can be observed in Figure 1 that shows how the fatality rate (worker deaths per 100,000 workers) has declined during the past three decades.

35 30 25 Fatality Rate

20 15 10 5 0 1965 1970 1975 1980 1985 1990 1995 2000 Figure 1. Construction Industry Fatality Rate

Figure 1 shows that the construction industry death rate improved over the years, but the rate of change decreased in the past fifteen years. While the safety regulations may have had a significant impact during the 1970s, other factors have contributed to making further improvements. For example, during the early to mid-1980s the United States went through a liability crisis. Some major lawsuits were filed in which workers who were injured at work or who sustained serious health ailments because of work exposures were given large court settlements. The first of the parties in the construction process to respond to the large settlements were the facility owners. These are the large owners with large annual construction budgets, typically over $100,000,000. Examples of such owners included those with refineries, paper mills, pharmaceutical facilities, power plants and the like. These owners recognized that the costs of these injury settlements were ultimately reflected in the costs of construction. As a result they began to insist on their contractors making a concerted effort to deliver projects safely. These efforts of owners were successful and noticeable improvements were noted on their projects. Many owners refused to award contracts to firms that did not have outstanding safety records. Naturally, many contractors soon realized that that there was a direct reward for having a good safety record. As the new millennium unfolded, there were several construction firms that could boast of having world class safety records. Some firms even reported that they had completed entire projects without the occurrence of a single injury that required the attention of a physician. These firms were clearly in a minority, but their success serves as an inspiration to other firms.

The Domino Theory Much can be understood about safety when the causation of injuries is examined. It is not the purpose of this presentation to describe all the theories of accident causation; however, one theory will be discussed. This is 9

the Domino Theory which relates to the exercise of standing up dominos in a line. When the line is complete, the domino at one end will be pushed so it falls against the next domino. The next domino begins to fall and similarly strikes the third domino. This essentially sets up a chain reaction in which every domino falls. The Domino Theory, as related to injury occurrence, considers the last domino that falls to be the injury event. All of the dominos preceding that domino are considered to be contributing factors. For example, the injured worker might have contributed to the injury by not wearing the prescribed personal protective equipment, or by not following instructions. Some dominos may relate to contributing factors related to the immediate supervisor, including the failure to properly instruct the worker, failure to coordinate and plan the work, failure to enforce safety on the project, and so on. Similar contributing factors might be suggested for the job superintendent, safety manager, project manager, the president of the company, and other firms as designers, owners, etc. Of course, with the Domino Theory the objective is for the last domino (the occurrence of an injury) to remain standing. This can be done by simply removing any one of the other dominos that appear in the line of dominos. Those who adhere to the Domino Theory recognize that whenever an injury occurs there was something that many different individuals might have done that would have prevented the injury. Note that this theory is not to place blame for accident causation but rather to have every party involved in the construction process to act proactively to promote safety and to avoid injuries. If every party who is involved in the construction process would examine how they might promote jobsite safety, dramatic improvements would result.

The Legal Dilemma There has been such a long tradition of lawsuits in the United States that many firms are more concerned about legal issues that safety issues. When legal counsel considers the liability of an owner client, their advice is frequently along the lines of shifting liability to the general contractor via the construction contract. The general contractors will similarly shift liability onto their subcontractors. Unfortunately, when the owners and general contractors have a perception that they are immune from liability suits, they no longer feel the need to promote safety to any extent. The reality of the above scenario is that there is never full assurance that liability can be fully shifted onto another party because of contract language. Whenever lawsuits are filed, it is common for the injured party to sue all parties who have a significant involvement in the project. The primary targets of interest to the attorneys are those with the greatest ability to pay, namely the general contractor, the owner, and the larger subcontractors. Note that the employers tend to be protected from lawsuits from their employees by the workers’ compensation laws. Designers will seek to have suits dismissed because they are agents of the owner and not independent contractors. The problem with the “lawyerization” of the construction industry is that too much effort is placed on avoiding and shifting liability. The emphasis should be on avoiding injuries. The best way to avoid an injury related lawsuit is to prevent the injury.

Changing the Culture As the construction industry enters the 21st century, a stronger effort should be made to establish a strong safety culture in the industry. Some contractors have reported phenomenal successes and this same success can be realized in the entire construction industry if a concerted effort is made to change the culture. If the safety culture of the construction industry were to change, every party involved in the construction process would do its part in helping to make improvements in the safety performance of the construction industry. Architects and engineers would readily accept the responsibility for addressing construction worker safety in their designs. Owners would similarly ensure that only safe contractors were awarded the contracts and these owners would be active participants in the safety process during construction.

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Is this proposal an unrealistic expectation? Perhaps in the short-term this is little more than a dream, but there is reason to believe that this has a possibility of becoming reality. As already noted, there have been phenomenal successes in safety performances on some construction projects. These are now isolated instances, but they can become widespread occurrences. Designers are perhaps the party that has historically been least involved in the area of promoting construction worker safety. This is changing as some designers have become committed to designing facilities that will be safer to construct. One of the most notable areas where safety is addressed by designers is in the area of design-build. For these designers, it is a natural motivation to “design for safety” because the workers being affected are employees. Table 1 shows that the injury rate (injuries sustained per 200,000 worker hours) is considerably better among projects completed under design-build contracts. Table 1. Role of Designers in Safety Injuries per 200,000 worker hours* Type of Contract on the Project Design-Build IR=1.15 General Contract (separate design) IR=2.35 *Note: these differences are statistically significant

Research has shown that owners play a significant role in influencing the safety performance that is ultimately realized at the project level. Better safety performances occur on projects when the owners restrict contracting to firms with good safety records, when owners aggressively address safety in the construction contract, and when the owner is active in the safety process during construction (see Table 2). The party in primary control of the construction project is the general contractor. As such, the contractor has considerable influence in shaping the safety culture on the project site. Table 3 presents a sampling of ways that the general contractor can impact safety performance. Table 2. Role of Owners and Injury Rate (IR) Practice Practice Not Owner Practice Implemented Implemented Evaluate contractors on safety IR=1.91* IR=2.89 Allocate addition funds for safety IR=1.65* IR=2.39 Owner Rep. participates in safety mtgs. IR=1.67* IR=3.33 *Note: safety performances are better where these practices are in place

Table 3. Practices of Contractors and Injury Rate (IR) Practice Practice Not Contractor Practice Implemented Implemented President reviews safety reports IR=0.97* IR=6.89 Project has site specific safety plan IR=1.76* IR=5.43 Pre-task meetings are implemented IR=1.04* IR=2.67 Every worker receives orientation IR=1.76* IR=5.72 Subcontractors must submit safety plans IR=1.37* IR=3.83 Random drug tests are conducted IR=1.33* IR=2.57 *Note: safety performances are better where these practices are in place

Where is Construction Safety Going? The construction industry will undoubtedly continue to improve its safety performance record, but this will be a slow process unless a more aggressive promotion of safety occurs. The safety successes realized to date provide encouragement for sustaining the efforts in construction safety. Practices that have resulted in successes on a small scale need to be expanded to the entire industry. Past successes will continue to serve as an inspiration to others. The efforts in construction safety will require the active participation of several parties. Research has provided clear evidence on ways that general contractors and owners can aggressively promote jobsite safety. 11

Designers will be reluctant to venture into this arena, but this is an obligation that owners may thrust on them. With the rapid growth of the design-build approach, designers will be increasingly placed in situations where they will be expected to make design decisions that address the safety of construction workers. The safety of the construction industry will improve significantly if general contractors, owners, and designers take a more aggressive stance on safety. Other factors must also be addressed. For example, a recent phenomenon in the U.S. construction industry is that a significant number of workers do not speak English and they have different cultural norms. These are also the workers who suffer a disproportionate number of injuries and fatalities. Safety program efforts expended to promote safety must be carefully evaluated to ensure their effectiveness among all the workers. In the strong economy being enjoyed in the United States, many new firms are entering the construction industry. Many are small firms and this phenomenon has contributed an increased number of sub-subcontractors on construction sites. This change must somehow be addressed to effectively manage jobsite safety. Vendors are often ignored when it comes to compliance with safety regulations. Many consider the vendors to be on site for very short time periods and that this does not justify their inclusion in the safety process. This too is beginning to change, but the process is slow. Lawyers will continue to focus on avoiding liability which will oftentimes undermine the safety efforts on construction sites. Only a sustained effort to convince lawyers of the need to be safe and not to be solely focused on shifting liability to someone else will eventually pay off. Past safety performances have been evaluated on the basis of injury rates and similar measures. These are after-the-fact measures and do not provide insights on how to improve safety conditions before an injury occurs. There is already a trend for more firms to begin to use leading indicators to measure their own safety performance. These are measures of the safety process, and through their use, management can gain clear insights on those aspects of the safety process that are working and those which will require some form of intervention. The changing workforce and the changing needs for construction services will require new issues to be addressed. For example, health, and environmental (sustainability) issues will need to be incorporated in company safety efforts. There will be a greater need for global collaboration. Specific issues must also be examined, including the impact of overtime on safety performance, how work zone safety can be improved, and how a strong safety culture can be created in a small construction firm.

Conclusions The construction industry has an established record of poor safety performance, but this position can change. Every party to the construction process must shoulder the responsibilities that are associated with working in the industry. If every party in the construction process was aggressive about safety, significant improvements would be realized in the safety performance of the construction industry. This will require a change in the safety culture of the industry. It is now time to reject the idea that injuries are a part of every construction project. Every injury is preventable and the necessary efforts should be expended to help achieve the goal of zero injuries.

Bibliography Hinze, J. (2001) CII Research Summary 160-1, Safety Plus: Making Zero Accidents a Reality, Construction Industry Institute, Austin, Texas. Hinze, J. and R. Godfrey (2002) CII Research Summary 160A-1, Making Zero Accidents a Reality: Focus on Shutdowns, Turnarounds, and Outages, Construction Industry Institute, Austin, Texas. Hinze, J. and X. Huang (2003) CII Research Summary 190-1, The Owners’ Role in Construction Safety, Construction Industry Institute, Austin, Texas.

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Third International Conference on Construction in the 21st Century (CITC-III) “Searching for effective project managers” 15-17, September 2005, Athens

Keynote Lecture 3

Searching For Effective Project Managers Skills, Knowledge and Measurement Miles Shepherd Hon Senior Research Fellow, Bartlett School of Construction and Project Management University College London,London, UK

Abstract This paper reviews the rise in the use of project management as a strategic business approach. It is shown that there is a need for the effective delivery of project outcomes and that the provision of appropriate resources is a key part of the battle to remain competitive. The role of the Project Manager, development of skills and competances are discussed. Approaches to assessment of project managers are discussed in the light of efforts of professional societies to provide development for members. It is concluded that a broad interpretation of project management body of knowledge is likely to provide the most effective base for assessment of competence.

Keywords Project management, bodies of knowledge, competence, certification

1. Introduction Many organisations now recognise project management as key to their business operations (see for example Packendorf 1995, Hodgson 2002 and Crawford 2005). As Morris et al (2000) show, a wide range of industry sectors now make use of projects and see the effective delivery of projects as a key driver in their organisational performance. This rise of ‘projectification’ has stimulated the interest of both practitioners and researchers to investigate all aspects of the knowledge domain we call project management and considerable effort has ben devoted to understanding the role of the Project Manager (Globerson and Zwikael 2002) , the skills (El-Sabaa 2001) and competences (e.g. Crawford 2005). Senior Management is interested in understanding how to manage projects effectively and knowing what resources are needed to do this. They frequently seek out people they believe have the best qualifications to deliver projects successfully, relying on a range of indicators such as past performance, education and certification to make their judgements. The usefulness of past peformance depends on similarity of circumstances: size of project, complexity, resource availablilty funding levels and level of risk all contribute. Education for project managers largely consistes of post graduate qualifications which give little indication of performance while certification depends to a great extent on the underlying model used to evaluate competence. This paper examines the background to certification and reviews the models available. 2. Professional Knowledge Project Management is sometimes seen as a ‘profession’, not least by its practitioners. One of the defining characteristics of a profession is the way the knowledge and skills of the practitioner are organized around an articulate account or theory (Moline 1986). The definition of this ‘body of knowledge’ so far as project 13

management is concerned has followed from the development of practice over the period since World War II. This history has been described by Morris (1997), Engwall (1995) and others. In the immediate post-war period, the dominance of the oil & gas industry and defence projects such as the Polaris programme ensured a rapid development of technological approaches to planning and scheduling. Gaddis (1999) noted the influence of the Cold War as an accelerator but in the 1960s the inherently technical approach characterized by the quantitative approaches transferred from the Operational Research discipline was challenged (Packendorf 1995, Winch 1996) and the theoretical base was broadened. During the 1980s, the emphasis was on the development of tools and techniques (Turner 2005) and in the 1980s attention turned to success criteria (Slevin and Pinto 1988). Against this background, the first major attempt to define the body of knowledge (BoK) for project management took place in USA. During the 1980s, PMI set out to define what ‘is generally accepted on most projects most of the time’ (PMI 2004). The original concept was founded on three areas of focus (Duncan 1995): • • •

The distinguishing characteristics of a practicing professional (ethics); The content and structure of the profession’s body of knowledge (standards); Recognition of professional attainment (accreditation)

The subsequent report included a standards baseline covering 6 major functions (scope, cost, time, quality, human resources and communications). Further development of these 6 areas and the addition of 3 other sections (PM Framework, risk management and procurement management), lead to the publication of the original PMBoK (PMI 1986). The standalone version was published in 1987. It has been revised, first in 1994 when it became ‘A Guide to the Project Management Body of Knowledge’, and in 2000 and 2004. Somewhat later (early 1986), in the United Kingdom (UK), work began on a rather broader version that took into account more of the context of the project. Like the PMI version, APM’s BoK was drafted to support certification of competence. An early version of the BoK was presented at INTERNET 90 and the first version issued in April 1992. After a revision in 1993 it was reissued in 1994. Much of the early work was based on Morris’ (1994) concept of the ‘management of projects’, characterised by a more fully defined life cycle that envisages the project placed in a business context, with the project manager responsible for not just the delivery to time cost and quality but for the business success of the project. The APM BoK underwent a ‘fundamental revision’ (Dixon 2000) in 1999 resulting in the 4th Edition (APM 2000). A further substantial revision has just been completed (May 2005). Other versions were developed in Germany, Switzerland and France. These, along with the APM BoK formed the basis of the International Project Management Association’s (IPMA) International Competence Baseline (ICB) (Pannenbäcker et al 2002). This too was designed to provide the basis for certification. As Crawford (2004) points out, the ICB was intended to harmonise a number of European National BoKs. The ICB consists of 28 core elements and 14 additional elements of knowledge and experience. National Competence Baselines (NCBs) complying with IPMA requirements must include all 28 core elements and at least 6 additional elements selected by the National association. They are also required to include all the personal attitudes and 10 elements of ‘general impression’. Member Association may eliminate or replace up to 8 of the additional elements. This allows the Member Association to develop their own NCB taking into account any national requirements or to reflect changes in theoretical developments. NCBs are validated by the Certification Validation Management Board (CVMB). Unlike the PMBOK, the ICB underpins multi level certification. 3.

Assessment Approaches

Amongst organisations that deliver their business by means of project, there is a need to provide suitable project managers to execute the work. As more organisations define their activities as projects, so demand for project managers grows. As Crawford (2005) demonstrates, competence of project managers is seen to be important as they are percieved to have a significant impact on project performance and hence on 14

organisational performance. Along with growth in demand, there is also an increased interest in determining whether the project manager is able to deliver effectively. There are a number of approaches to selection that can be adopted: • • • • •

Personal judgement based on interview Establishment of minimum general management criteria Track record Academic qualifications Certification based on criteria established by Professional Association

3.1 Personal Judgement This approach is usually considered too subjectibve for formal consideration but there is something to be said for selecting someone on the basis of gut feel. Factors considered might include communciation skills as well as enthusiasm, self confidence and abilities such as delegation skills and political sensitivity. Few of these can easily be assessed by examination or formal qualification so assessment by means of interview, personality assessment or psychometric testing could be employed. Performance appraisal can be used to screen internal candidates (Ilgen 1983) but other methods will be needed for external candidates. 3.2 General Management Criteria Some consider that project management is simply a variation of general management so selecting a project manager using the same criteria as a functional manager might be considered a sound strategy. However, as El-Sabaa (2001) shows, both the career path of the project manager and the skill sets required differ from those of the functional manager. Also DeFillipi and Arthur (1998) noted that the competencies to run effective projects differ from those needed to manage manufacturing firms. So it seems this approach is sub-optimal. 3.3 Track Record Ogunlana et al (2002) note that it is common practice to evaluate past performance, or track record, before a job is offered. This presents some difficulty so far as projects are concerned.. As Chan and Tam (1995) has noted, the concept of project success remains prolematic. In some instances, the project manager has little control over the success factors which may not be evaluated within the duration of the project lifecycle (Munns and Bjeirmi 1996). Examples where the project was seen initially as a techncial failure when judged by the ‘Iron Triangle’ and are later seen as successful include Concorde and the Thames Barrier. Nonetheless, efforts by Ashley et al (1987) and others to define judgement criteria for project success have not greatly advanced the arguments beyound the Iron Triangle. In this context, :Lord Kelvin’s famous dictum about measurement and conclusions comes to mind. 3.4 Academic Qualification Reliance on academic qualifications seems attractive since the value of education is well known. However, there is no guarantee the possession of knowledge indicates an ability to apply it effectively. Frame (1999), citing Reich (1991) notes that the world is changing from one of bureaucratic decision making to one of flatter organizations, where people are rewarded according to their ability. This meritocracy thrives on competency, rather than simple academic qualification. So delivery is key to the future according to Reich. This moves the goal posts for academe since business now seeks effectiveness rather than qualification. 3.5 Certification The professional project management societies (mainly PMI and IPMA) established their codified knowledge domains to underpin certification. The PMI approach has resulted in a concentration on delivery via a test of knowledge supported by educational and experiential qualification. This is, by design, 15

a low level test of basic knowledge and limits certification to a single level. By contrast, IPMA while also starting with a test of basic knowledge moves through to test competence by examining behavioural characteristics via observation or by scenario based testing. This allows multiple levels of assessment which IPMA feels better reflect the career progression of project managers. This move away from examination reflects the nature of knowledge (Noneka and Takeuci 1995). Certification is the assessment of an individual against specified criteria and does not necessarily reflect an ability to apply tacit or implicit knowledge. All forms of certification depend on two, first, how well the criteria model the desired outcome and, second on how well the assessment process is conducted. Models of project management are presently confined to BoKs and theoretical models of personal attributes. The former are reasonably well developed (but subject to review and development) but the later are not have yet to be validated. The actual process of assessment is subject to internationally recognized methods (ISO 17024:2003). IPMA National Certification Bodies are expected to seek formal accreditation. 4.

Conclusions

The drivers of modern business have ensured that project management is increasingly seen as a key organizational requirement and the demand for effective project managers has significantly increased. As project management has emerged as a discipline, its knowledge domain has been defined in the form of BoKs and methods have been developed to asses both the practitioner’s understanding of specialized knowledge and behavioural characteristics. IPMA’s 4 level certification (4LC) scheme offers an effective development path for individuals and a consistent and effective benchmark of performance for organizations. References: Ashley, D.B., Lurie, C.S., Jaselskis, E.J. (1987) Determination of construction project success. Project Management Journal Vol 18 No 2. Association for Project Management (2000) Body of Knowledge Version 4, High Wycombe, APM Chan A. and Tam, C.M. (1995) Impact of management style on project performance. Proceedings of the First International Conference on Construction Project Management, Singapore p115 - 122 Crawford, L., (2004) ‘Project Management Bodies of Knowledge and Standards’ in Morris, P. W. G., and J. K. Pinto, eds. (2004) The Wiley Guide to Managing Projects. Hoboken, NJ: Wiley Crawford, L. (2005) ‘Senior management perceptions of project management competence’ International Journal of project Management Vol 23 No 1 pp 7 – 16 DeFillipi, R. and Arthur M. (1988) Paradox in project-based enterprise: the case of film making. Journal of Management Vol 40 No 2 pp 125 – 139. Duncan, W.R., ‘Developing a project-management body-of-knowledge document: the US Project Management Institute’s approach 1983 – 94’. International Journal of Project Management Vol 13 No 2 pp89 – 94. Engwall, M. (1995) Jakten på det Effektiva Projektet Stockholm: Nerenius & Santérus El-Sabaa, S. (2001) ‘The skills and career path of an effective project manager’ International Journal of Project Management Vol 19 No 1 pp 1 - 7 Frame, J.D. (1999), Project Management Competence, Jossey-Bass, San Francisco, CA Globerson, S., and Zwikael, O., (2002) ‘The impact of the Project Manager on project planning processes.’ Project Management Journal Vol 33 No 2 pp58 – 64 Hodgson, D.E. (2002) ‘Disciplining the Professional: the Case of Project Management’ Journal of Management Studies, Issue 39, No. 7 Ilgen, D.R. and Feldman, J.M. (1983) Performance Appraisal: a process. Research in organizational behaviour, Vol 5 pp 141 – 197. Moline, J.N., ‘Professionals and professions: a philosophical examination of an ideal’ Social Science and Medicine Vol 22 No 5 pp 501 – 508 Morris, P.W.G. (1997). The Management of Projects 2nd Ed. London: Thomas Telford Munns, A. K. and Bjeirmi, B. F. (1996) 'The role of project management in achieving project success', International Journal of Project Management, Vol. 14, No. 2, pp. 81-87. Nonaka, I. and Takeuchi, H. (1995) The Knowledge-Creating Company, New York: Oxford University Press

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Ogunlana, S., Siddiqui, Z., Yisa, S and Olomolaiye, P. (2002) ‘Factors and procedures used in matching project managers to construction projects in Bankok.’ International Journal of Project Management, Vol 20 No 5 pp385 - 400 Packendorff, J. (1995) ‘Inquiring into the Temporary Organisation: New Directions for Project Management Research’ Scandinavian Journal of Management, Vol.11, No.4, pp.319-333 Project Management Institute (1986) ‘Project Management Body of Knowledge’ Project Management Journal Vol 14 No 3 Reich, R.B. (1991) The work of nations: preparing ourselves for 21st Century capitalism. New York, Knopf Slevin, J.K, and Pinto, D.P., (1988) Critical Success factors in effective project implementation, in Project Management Handbook 2nd Edition, Editors Clelland D.I. and King, W.R. New York, Van Nostrand Reinhold

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Third International Conference on Construction in the 21st Century (CITC-III) “Searching for effective project managers” 15-17, September 2005, Athens

Keynote Lecture 4

Managing Intangibles – The Latent Dimension for Achieving Project and Corporate Competitiveness in Construction Ronald McCaffer Department of Civil and Building Engineering, Loughborough University, UK Francis Tekyi Edum-Fotwe Department of Civil and Building Engineering, Loughborough University, UK

Abstract The management of construction projects and companies in recent times has seen the unprecedented use of performance measures for evaluating efficiency of project outputs and effectiveness of corporate objectives. The principal driver for the growing use of the plethora of performance measures is the notion that what cannot be measured cannot be managed. To remain competitive, construction must continue to evolve and provide innovative solutions to meet current and potential future challenges on the business, technological and environmental fronts. The essence of such innovative solutions is to achieve continued improvement in the way engineering and construction organisations deliver value. The growing conversion of intangibles into direct and quantifiable costs is a trend that presents considerable implications for how value is defined now and into the future. Some of these intangibles include aspects such as corporate knowledge in the form of knowledge accounting, and mitigation and improvement for the environment in the form of carbon trading (DTI, 2004), as well as managing risk at project and corporate levels. The impact of any advances for such intangibles on construction would be wide-ranging, and would extend from the appraisal of projects to corporate valuations. Within this paper the authors provide a state-of-the-art review of criteria and methods for evaluating projects. This shows that the current factors for performance evaluation of projects reflect cost, time, and quality. They argue that the current factures deployed in the evaluation of projects is inadequate to take on the intangible factors that project organisations are increasingly called upon to address both at project and corporate levels. They discuss some of the common intangibles that are emerging, which project organisation would need to give attention to, and suggests a way forward for their incorporation in existing project evaluation.

Keywords Construction, project, risk, knowledge, management, performance, intangibles

1. Introduction The management of construction projects and companies in recent times has seen the unprecedented use of performance measures for evaluating efficiency of project outputs and effectiveness of corporate objectives. The principal driver for the growing use of the plethora of performance measures is the notion that what cannot be measured cannot be managed. To remain competitive, construction must continue to evolve and provide innovative solutions to meet current and potential future challenges on the business, technological and environmental fronts. Traditionally, the efforts to improve construction have been influenced by the nature of its business, which is best described as project oriented. The delivery of construction projects relies on applying knowledge of modern management concepts as well as an understanding of the design and construction process (McCaffer and Edum-Fotwe, 2003). In this regard, the management of a project as an organisation can be differentiated from the general management of corporate establishments by the nature of

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mission for a project (PMI, 2000; APM, CII, ECI, ). Characteristically, a project organisation will be terminated when the mission is accomplished, signified by the close-out. By contrast, the management of the corporate organisation assumes a broader outlook with an assumed notion of continuity for the company and its operations. This time scale difference between the project and company mission makes it possible for modern techniques developed for general management to be adapted for delivering the project. McCaffer and Edum-Fotwe (2003) have argued that the trend of improvement in construction over the past four decades has progressed form exploring greater efficiency for site activities to other aspects of projects and the company that present a less tangible definition. The need to give attention to a growing of number of intangibles is leading to a situation whereby their conversion into direct and quantifiable costs is a trend that presents considerable implications for how value is defined now and into the future (Vickery, 2000; Carayanis, 2004). Some of these intangibles include aspects such as corporate knowledge in the form of knowledge accounting, and mitigation and improvement for the environment in the form of carbon trading (DTI, 2004), as well as managing risk at project and corporate levels. The impact of any advances for such intangibles on construction would be wide-ranging, and would extend from the appraisal of projects to corporate valuations. Within this paper the authors present a review of the criteria and methods for evaluating projects in currency. This shows that the current factors for performance evaluation of projects reflect cost, time, and quality. They argue that the current factures deployed in the evaluation of projects is inadequate to take on the intangible factors that project organisations are increasingly called upon to address both at project and corporate levels. They discuss some of the common intangibles that are emerging, which project organisation would need to give attention to, and suggests a way forward for their incorporation in existing project evaluation.

2. Performance Evaluation The evaluation of corporate performance by the formalised reporting protocols has come under scrutiny for some time (Eccles et al., 2001; Rivette and Kline, 2000; Warden, 2002). The equivalent for projects in construction is just beginning to receive attention (Morris, 2000). The rather slow attention to the fundamental way in which projects are evaluated in construction may be viewed as stemming from the firm foundation established for project management in the AEC sector (Turner, 1999). The Project Management Institute (PMI) has defined the discipline of project management as follows: …. the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality and customer satisfaction (PMBOK). Typically the functions implied by the definition of above can be represented as: • Specification of project objectives and plans including definition of scope, budget, schedule, performance requirements, and selection of project participants • Maximization of efficient resource utilization through procurement of labour, materials and plant/equipment according to a prescribed schedule and plan. • Implementation of various operations through proper coordination and control of planning, design, estimating, contracting and construction for the entire process. • Development of effective communications and mechanisms for resolving conflicts among the various participants. These functions reflect and represent both tangible and intangible aspects of construction with definable requirements. Typically, construction has appropriate systems and metrics in place for planning and controlling the performance of the tangible aspects of the projects.

3. Construction Improvement in Perspective Figure 1 depicts the various states of transition for the improvement efforts that reflect by construction over the past four decades. This indicates a transition from managing only the more tangible aspects of construction to include the lesser tangible factors. This is reflected Latham (1994) and Egan (1998) in respective reports on how productivity could be accelerated within construction. Figure 2 shows the Egan framework for achieving 19

continuous improvement and accelerated productivity for construction. Egan associated the basis for improving the tangible characteristics of construction, such as accident rate, capital cost and other readily measurable performance requirements with intangible factors such as leadership, customer focus and other similar drivers for which currently no definitive metrics exist. This lack of universal metrics for evaluating the intangible aspects of projects and construction organisation has made the aspirations Egan and his forebears difficult to realise for many construction companies.

Figure 1. Progression in the focus of improvement efforts in construction This has led to views by some in academia that the current theories for the delivery of projects in are inadequate to deal with modern requirements in construction (Koskela, 2002). Others have gone as far as to argue and suggest that a focus on any form of generalised tangible factors for evaluating construction is fundamentally flawed especially as such generalised factors totally ignore the influence of contextual conditions of construction (Green, 2000). The inadequacy of construction to provide systematic and consistent metrics to address its project and organisation mitigates its ability to bring about the step-change essential for accelerated improvement in productivity. The next section of this paper is devoted to dealing with intangibles, to provide options that construction could consider to bring about accelerated productivity and performance improvement relevant to the circumstances of the modern company and business environment.

4 The Intangibles Dimension The role of intangibles in the valuation corporate assets has been gaining momentum as corporate establishments explore options for enhancing their competitiveness. Lev (2005) has argued that over the last decade there has been a gradual but fundamental shift in what constitutes value for many companies. At present, the basis for understanding value creation for most companies remains as the traditional audited financial performance such as the balance sheet and income statement at corporate level, and valuations at project level (Eccles et al., 2000; ). There is sufficient ground for considering this traditional outlook on value creation as inadequate to address the demands of complex projects as well as the construction company. Increasingly, the answer to what constitutes value at both project and corporate levels appear to lie in ‘a set of elements that include ideas, innovations, human activities, work team efforts, and business processes that are generally described by the term intangibles’ (Lev, 2004; Miles and Snow, 2000; Morris, 2000).

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The term intangibles is generally used to cover a broad range of factors that are created by or contribute to business value and includes human capital, intellectual capital, social capital, as well as structural capital (Sanchez et al., 2000). These different categories of capital refer to people, ideas, network connections, processes, and their offshoots that have not traditionally been defined within the corporate and project vocabulary. Increasingly, however, these are recognised as legitimate sources of value or advantage in the global business context (Yli-Renko et al., 2001). The growth in partnering and teamwork within construction provides evidence of the recognition given by the different stakeholders of a project to the essential value of such intangibles (Edum-Fotwe et al., 2004). Intangibles carry the characteristic of having a value that cannot be seen or touched or operated by conventionally accepted practices in the valuation of projects and companies (Parlby, 2000). It includes things such as: goodwill, business books and records, a patent, a license, intellectual property, and a covenant not to compete. These are features of a company or project that can either be amortised or depreciated. The essence of the concept underlying intangibles is that the value of a business or projects represents more that the simplistic summation of its physical assets (financial and other tangible resources). The remaining assets that are not accounted for in normal reporting procedures for both the corporate and project constitute intangibles. To expand their competitive horizon therefore, construction companies would have to start accounting for the contribution that the intangibles make to their organisation and project performance. The next section addresses some of the current categories and methods for evaluating intangibles, to provide options that construction could explore.

Drivers for Change

Improving the Project Process

Committed Leadership

Focus on the customer

Product Development

Partnering the supply chain

Product Team Integration

Quality-driven Agenda

Product implementation

Production of components

Commitment to People

Targets for Improvement Capital cost

-10%

Construction Time

-10%

Predictability

+20%

Defects

-20%

Accidents

-20%

Productivity

+10%

Turnover & Profits

+10%

Figure 2. The Egan framework for improving performance in construction

5. Categories of Intangibles Sanchez et al. (2000) in exploration for a definition of what constitutes intangibles considered them as sources of probable future economic profits lacking physical substance, which are controlled, or at least influenced, by a company or a project as a result of previous events and transactions (production, direct purchase or any other type of acquisition) and may or may not be sold separately from other corporate assets. The consideration of intangibles from this perspective assumes considerable significance for supply chain management in construction. Two categories are implied by the description of Sanchez et al. (2000), namely: static intangibles or intangible resources, and dynamic intangibles or intangible activities. A brief discussion of each of these two categories of intangibles is presented.

5.1. Intangible Resources Static intangibles constitute assets in a broad sense, and include intellectual property rights, trademarks, 21

certain information technologies such as databases, networks, and skills including capabilities and competencies, such as those in human capital (Chan et al., 2001). According to Lev (2004) the intangible resources of a company, can be measured at any given moment. These intangible resources are likely to increase the future value of the company in a general sense. It could also enhance its innovation capacity where that is the emphasis for gaining competitive advantage. Although there is no unique classification for intangible resources, most practitioners distinguish between the following types: Human, Structural and Relational capital, each of which is further explained below (Sanchez et al., 2000). 5.1.1 Human capital This defines the knowledge that employees take with them when they leave the firm. It includes the knowledge, skills, experiences and abilities of people within the company or project. Some of this knowledge is unique to the individual, some may be generic. Examples are innovation capacity, creativity, know-how and previous experience, teamwork capacity, employee flexibility, tolerance for ambiguity, motivation, satisfaction, learning capacity, loyalty, formal training and education. Whilst each of these aspects is seen as having an influence on the performance of the project and companies in construction, the magnitude of influence is scarcely established. 5.1.2 Structural capital This constitutes the pool of knowledge that stays with the firm at the end of the working day. It comprises the organisational routines, procedures, systems, cultures, databases, profile. Some of the structural capital is often the subject of legal protection and become Intellectual property rights, legally owned by the company under a separate title. Examples include organisational flexibility, a documentation service, existence of a knowledge centres, general use of Information and Communication Technologies, and organisational learning capacity. 5.1.3 Relational capital This defines all resources linked to the external relationships of the company or project, such us clients, suppliers, own subcontractors or other project partners. It also comprises that part of Human and Structural capital that deals with the project or company’s relations with stakeholders, such as investors, creditors, customers, suppliers, and the perceptions that they hold about the company. Examples of this category are image, client loyalty, customer satisfaction, links with suppliers, commercial power, negotiating capacity with financial entities, and environmental activities. 5.2 Intangibles Activities In themselves, resources present no value-adding characteristic unless they are appropriated. Dynamic intangibles constitute the actions that are required for appropriating the intangible resources in order to bring about future value. Dynamic intangibles imply an allocation and use of resources that are sometimes not expressed in financial terms, and therefore, may or may not appear in the financial reporting for the project or company. According to Sanchez et al. (2000), intangible activities may give rise to new intangible resources, or improve the value of existing resources. Intangible activities also include the activities aimed at monitoring and evaluating the results of those connectivity improvements. 5.3 Evaluating Intangibles From an accounting perspective, the evaluation of intangibles is related to value. This provides an instantaneous value of the company and identifies the component of the ‘value’ that is contributed by intangibles. Examples of current methods include the market-to-book, calculated intangible value, and the Lev methodology. 5.3.1 Market-to-book This method values intangibles by simply subtracting a company's book value from its market value and labels the difference as intangibles. Because it rises and falls with market sentiment, the market-to-book figure often cannot produce a stable and fixed value for intangibles.

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5.3.2 Calculated intangible value This method overcomes the drawbacks of the market-to-book method. It entails examining the earnings performance of the company or project, and identifying the assets that produced those earnings. In many cases, the use of the calculated intangible value technique helps to establish the enormity of the unrecorded value at corporate and project level. For example the value of intangible assets, such as engineering and design solutions, research and development, patents, copyrights, customer lists and corporate image would represent a large part of that information gap due to unrecorded value during such calculation. According to Lev (2005) it is this gap that accounts for the reason why many accountants and corporate executives, are reluctant to recognize intangible, as assets on par with physical and financial assets in their financial reports. 5.3.3 Lev method Lev’s approach to measuring the value of intangibles is rooted in the concept of production function (Lev, 2004). From the production function perspective, the economic performance (EP) of a company or project is influenced and driven by three principal classes of assets, namely: Physical Assets (PA), Financial Assets (FA), and Intangible Assets (IA). The economic performance represents a combination of past earnings and future growth potential and defined by equations [1] and [2]. In particular, equation [2] underscores the differential contribution that each of the three principal classes of assets can make to the economic fortunes of the company or project.

EP ∝ (PA + FA + IA )

[1]

EP = αPA + β FA + δIA

[2]

This gives:

Where: α , β and δ represent the contributions of a unit of an asset to the corporate or project performance. β and δ can each take on negative and positive values. Further detail on the use of the Lev technique for evaluating and reporting performance can be obtained from Lev (2004).

6. Current Construction Intangibles The growing conversion of intangibles into direct and quantifiable costs is a trend that presents considerable implications for how value is defined now and into the future in construction (Lazarus, 2001; Pearce, 2004). Some of these intangibles in construction include aspects such as corporate knowledge in the form of knowledge accounting, and mitigation and improvement for the ecological environment in the form of carbon trading (DTI, 2004), as well as managing non-project- and corporate-specific risk. The impact of any advances in the management of these intangibles on construction would be wide-ranging, and could extend from the appraisal of projects to corporate valuations (CIRIA, 2001).

7. Some Considerations for Construction In the past, most companies depended solely on economies of scale for competitive performance. The industrialisation of construction to achieve the equivalent of mass production system with homogenous products represents economic advantage in focusing on the tangible aspects of the project and company. Equally, the knowledge content of products was relatively low and the most important phase of the production process in construction was site production. Since the tangible aspects of factors of production were the most important productivity was therefore, explained by the amount of physical capital and quantity of labour employed. Currently, the knowledge content of products in construction is relatively higher, and the pre-site

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construction phase is often crucial for value creation. For example it widely agreed by industry and academia alike that the front-end of projects is where things can go badly wrong (CIRIA, 2001). Consequently, the early phases of the project present the best opportunity of positively influencing the chances of a successful outcome. Therefore, the activities carried out at this phase, which often reflect more of the intangible factors such as research and organisation, as well as re-use of know-how and experience, are very important. At organisational level multinational construction companies for many years, could compete successfully by exploiting scale and scope economies (Roslender, 2000). This often involved taking advantage of imperfections in the global physical resources (materials), labour and capital markets. These ways of competing, however, are no longer as profitable as they once were (Kaplan and Norton, 1992). In most industries, multinationals no longer compete primarily with companies whose boundaries are confined to a single nation. Rather, they go head-to-head with a handful of other corporate giants (Flanagan, 2005). Against such global competitors, it is difficult to sustain any competitive advantage based on traditional economies of scale and scope. The role of intangibles in defining a step change in the way they compete is therefore, crucial to their success in managing both at the corporate and project levels (Roberts, 2000). For many construction companies the consideration of intangibles in such a fundamental way would impose changes such as new forms of governance, alternative forms of organisation, indeed a change in the very nature of the business in construction. In construction within UK, such considerations in the later part of the 20th century resulted in a situation whereby the vertically integrated construction contractor was no longer viewed as the best form of governance for gaining competitive advantage. The way forward for construction to cope with the emerging influence of intangibles would be to contemplate the following: • How to cost-justify intangibles based projects • How to present intangibles value in a standardised manner • How to financially report intangible value • How to scientifically manage intangible based risks through intangible risk management • How to factor intangible economics into the production process • How to independently assess the intangible health of publicly listed construction organisations through intangible finance techniques • How to record the daily flows and changes in intangible value through intangible accounting,

8. Conclusion In today’s global marketplace, where complexity and speed are increasingly becoming certainties, competing on the basis of the traditional models of tangible value alone is inadequate. In this paper, we have deliberated on a number of developments in intangible valuation which could augment the way construction companies will compete into the future. By embracing, and adapting some of these techniques, the potential to bring about a step change and accelerated productivity could become a reality for construction. This would have implications for the way construction would do business both at the corporate and project levels.

References Carayannis, E. G. 2004. Measuring intangibles: managing intangibles for tangible outcomes in research and innovation. Int. J. Nuclear Knowledge Management, Vol. 1, Nos. 1/2, pp. 49-67 Chan L.K. C., Lakonishok, J., and Sougiannis, T. (2001) “The Stock Market Valuation of Research and Development Expenditures.” Journal of Finance, Vol. 56(6), pp. 2431–2456. CIRIA, (2001). Constructing the Future - Changing the future of construction (Foresight) June 2001. DTI, (2004). Better buildings - better lives, Sustainable Buildings Task Group Report, Available: http://www.dti.gov.uk/construction/sustain/sbtg.htm. Eccles, R.G., Herz, R.H., Keegan, E.M., Phillips, D.M.H., (2001). The Value Reporting revolution- moving beyond the earnings game, New York : Wiley.

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Edum-Fotwe, F. T., Thorpe, A., Gregory, M. J., Deasley, P. J., Wootton, A. B., North, A. N. W. and Cooper, R., (2004). The Future State Of Complex Product Design: Distributed Design Scenarios in the Aerospace, Construction and Product Design Sectors from 2003 to 2020, Telegenesis Report No. E/IMRC/T5R-G/04/1: Global, March, EPSRC. Egan, J., (2002). Accelerating Change, A report by the Strategic Forum for Construction, SFC, London. Egan, Sir John (1998), Re-thinking construction, Report of construction Task force, HMSO Publication. Kaplan R. S., Norton D. P., (1992) “The Balanced Scorecard- Measures that Drive Performance”, Harvard Business Review, January – February, pp. 70 -79 Latham, Sir, M., (1994). Constructing the team: joint review of procurement and contractual arrangements in the United Kingdom construction industry, Final report, HMSO, London. Lazarus, D., (2001). Managing project change: a best practice guide, CIRIA, London. Lev, B. (2005). “Intangible assets: concepts and measurements”. Encyclopaedia of Social Measurement, Volume 2, pp. 299-305 Lev, B. (2004). “Sharpening the intangible edge”. Harvard Business Review, June 2, pp. 109-116 McCaffer, R. and Edum-Fotwe, F.T., (2003). “Construction in Transition: Where Are We, and Where Could We Be?”, In: P. Tan and I. Ahmed (eds), Sustainability and Innovation in Management and Technology, Second International Conference on Construction in the 21st Century (CITC-II), 10-12 December, Hong Kong. Miles R. E., Snow Miles G. (2000) “Thefuture.organisation” Long Range Planning, No 33 Morris, P.W.G. (2000). “Researching the Unanswered Questions of Project Management. Project Management Research at the Turn of the Millennium”. Proceedings of PMI Research Conference 2000, 21-24 June 2000, Paris, France. pp.87-101. Parlby, D. (2000) KPMG Knowledge Management Research Report 2000, KPMG Consulting, London. Pearce, D., (2003). The Social and Economic Value of Construction: The construction industry’s contribution to sustainable development, nCRISP. [Pearce Report] Project Management Institute, (2000) A Guide to the Project Management Body of Knowledge, Newtown Square, Pennsylvania,. Rivette, K. and Kline, D. (2000). Rembrandts in the Attic: Unlocking the Hidden Value of Patents. Harvard Business School Press, Cambridge Massachusetts. Roberts, P., (2000) “Soft but also real” Internal Auditing and Business Risk, May, pp.6-7. Roslender R., (2000) “A contemporary management accounting perspective”, Management Accounting, March, pp. 34 – 37 Sánchez, M.P., Chaminade, C., Olea, M. (2000) “Management of intangibles. An attempt to build a theory”. Journal of Intellectual Capital. Vol.1, no 4, pp. 312 – 328. Turner, J. R. (1999). “Project management: A profession based on knowledge or faith?” International Journal of Project Management, Vol. 17, No. 6, pp. 329-330. Vickery, G. (2000) “Accounting for Intangibles: Issues and Prospects”. In: Buigues, P. (Ed.) Competitiveness and the Value of Intangible Assets. Edward Elgar Publishing. pp. 72-99 Warden, C., (2002). “Intellectual capital: Examples of measurement methods that can be applied to the special circumstances of HEROs”. EC Forum event (FP6 Launch): November 13. Yli-Renko, H. A., Erkko, S. and Harry J. (2001) “Social capital, knowledge capital, knowledge acquisition and knowledge exploitation in young technology based firms”, Strategic Management Journal, Vol. 22 Issue 6/7, pp. 587-614 Green, S.D. (2000) The future of lean construction: a brave new world. Barlow, J. (ed.) Proceedings of the 8th Conference of the International Group for Lean Construction (IGLC-8), SPRU, University of Sussex, UK. Koskela, L. and Howell, G., (2002) The underlying theory of project management is obsolete. In: Slevin, D. P., Cleland, D. I. and Pinto, J. K. (eds.) Proceedings of PMI Research Conference, Project Management Institute. pp. 293 - 301.

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Third International Conference on Construction in the 21st Century (CITC-III) “Advancing Engineering, Management and Technology” 15-17, September 2005, Athens

Invited Presentation 1

Presentation of the Hellenic Construction Economics Institute Hellenic Construction Economics Institute 91 Alexandras Av, 114 74 Athens Greece Tel.+30-210 64 30 691 Web: www.iok.gr

Abstract The Hellenic Construction Economics Institute (C.E.I.) has been active, since its establishment in 1998, in the research and analysis of topics related to construction projects and construction sector. C.E.I. is a self-ruling, non-profit organization, supervised by the Ministry for the Environment, Physical Planning, and Public Works (MEPPPW). The Institute’s task is to bring forth issues concerning the Construction Sector so that not only MEPPPW and other pertinent authorities initiate administrative and legal procedures for the continuous development and improvement of the framework for the implementation of construction projects but also productive constitutions to be supported in their tasks. This presentation is indented in providing an outline of the most significant of CEI’s activities and the conclusions derived thereof.

Keywords Construction Cost Estimation, Pay Items for Construction Works, Technical Specifications, Construction Statistics, Public Private Partnerships

1. Introduction (Aim – Administration – Resources) The mission of the Hellenic Construction Economics Institute is the research and analysis of topics related to the design, cost estimation, productivity, quality, funding and award procedures of Public Sector as well as Private Sector Construction Projects. As a matter of fact, C.E.I.’s subjects encompass the majority of issues concerning the construction sector. The research and study of the above subjects requires the participation of experts from all sectors related to construction: designers, contractors, economists, ministry officials, university researchers. C.E.I. is providing consultancy services in the foresaid fields since it was established in 1998. By statute the Institute is a non-profit organization, supervised by MEPPPW but maintaining administrative independence. It is governed by a five party board of directors, of which the president and vice president are appointed by the Minister of EPPPW and the rest three members are recommended by the Technical Chamber of Greece, the Association of Greek Industry and the Contractor’s Unions. C.E.I.’s permanent staffing consists of Economists and Engineers, acting as a liaison with a broad variety of external collaborators -highly qualified scientists and engineers- called upon as members of work groups according each individual project requirements.

2. C.E.I.’s Work Short Presentation. C.E.I.’s work consist in two major categories: ¾ Studies – Researches – Projects. ¾ Scientific and Technical Support Services.

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In addition, C.E.I. has created Library and Data Bank continuously updated and has organized Conferences: National Specifications for Public Works (18/07/2001), Private Construction Legal Frame – Construction Contractors Registry (25/4/2002), Construction Sector Business Environment after the completion of the Athens Olympic Games of 2004 (7/7/2004). 2.1 Studies – Researches – Projects 2.1.1 According to C.E.I. annual planning - Public and private construction activity – progress up to 2004 (02/2002) Primary subjects of the research are the size of the domestic construction sector and its participation to macroeconomic figures, while the prospects of the above figures are examined with respect to the progress that has been achieved for the projects of CFS III and 2004Olympic Games. - Aggregates in the region of Attica (05/2002) Main subjects of the research are the size of supply and demand for aggregates, the analysis of the production cost, the transportation cost of aggregates, the examination of the legal framework that regulates the operation of quarries, the quality of aggregates, as well as the environmental impacts from the operation of quarries in Attica. A major part of the research refers to the prospects of the above figures and matters under the angle of the simultaneous progress of the CFS III and 2004 Olympic Games projects, which is expected to lead in increased demand for aggregates in Attica during the period 2002-2004. - Concentration of the construction sector considering complete operation of the new legal framework (L. 2940/01) (07/2002) Main subject of the research is the impact on the structure of the domestic construction sector as well as on its concentration from the application of the L.2940/2001, which motivates merges and acquisitions between construction firms. In parallel, the impacts of the new legal framework on the future supply and demand in the construction sector are examined considering the progress of the CFS III and 2004Olympic Games projects. - Evolution and recent trends in the domestic private construction activity (11/2002) Main subject of the research is the analysis of the basic characteristics of the domestic private construction activity, by the available statistical data of National Statistical Service of Greece. - Public and private construction activity – Estimates up to 2006 (02/2004) Primary subjects of the research are the size of the domestic construction sector and its share to macroeconomic figures of the country, while in parallel the prospects of the above figures are examined on the axis of completion of 2004 Olympic games project and the progress of CFS III construction projects. - Financial structure of the construction companies – Diachronic and stratified analysis (02/2004) The subject of this study is the impact of mergers on the financial structure of 231 major construction companies. - Size and basic characteristics of construction sector manpower (03/2004) Main subjects of the research are the size of construction sector manpower, its share on the total employment of Greek economy and the basic employment characteristics of this sector. Moreover, the prospects of the employment size are examined on the axis of completion of the Olympic games projects and the progress of the CFS III construction projects. -Concise presentation of the construction sector in the European Union & extroversion. The case of Greece (07/2004). Main subjects of the study are the basic figures and characteristics of the European construction industry, examined as a total as well as per participator country in the European Union, and the recent evolutions in the construction sector for every country – member of EU. Moreover, various important matters are examined, such as the size and the progress of construction sector’s extroversion for EU countries as well as the strategies of the major construction companies for expansion in the international market, strategies that can determine a specific development framework for the Greek, also, companies.

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-Form, structure and future exploitation of human resources in the domestic construction sector (12/2004) The scope of the study is to suggest applicable treatment policies for the redundant labour supply that has begun to appear with the completion of the Olympic construction projects and the significant delay in the realisation of CFS III projects. Main subjects of the study are the evolution of construction sector’s macroeconomic figures, the evolution of total employment, the quantitative and qualitative characteristics per speciality (university engineers, graduates of technical education institutions, administrative staff, workmen), as well as the educational necessities per speciality aiming at the emergence of those skills and knowledge that are required by the market. In the study is attempted an estimation of the medium-term prospects of the construction sector while their expected influence on the number of employees and the composition of specialities is explored. - Construction projects implementation based on PPP principles (03/2005) CEI’s study focuses in construction business environment implications and sector’s correspondence to the emerging PPP legal framework. Topics analysed include PPP methodologies, risk analysis assessment and allocation, obligations of the counterparts, the role of funding institutions, listing of project categories apt to be promoted with PPPs, as well as estimations for the demand of projects suitable to proceed with PPPs. EU policies on PPPs are also discussed and is attempted an initial estimation of the effects thereof to the domestic construction business. Finally CEI suggests policies and regulations for the smooth adaptation of PPP procedures by the Greek contractor firms. - Methodology and procedures for small-medium scale projects PPPs (Under construction) The scope of this report is the analysis of the procedures for the implementation of small-medium scale projects of various characteristic categories with increased demand. Discrete analysis is performed on issues concerning pre-bid procedures and implementation, namely: feasibility studies, social acceptance of project, preliminary maters, environmental assessment, permission granting procedures, financial /economic matters, contract award procedures and contract administration and project owner’s technical support requirements. This report is intended as a guideline to parties interested in small-medium scale PPPs, as local authorities and contractors. 2.1.2 Reports/studies of CEI for the MEPPPW - Comparative analysis of construction contracts awarded in the periods 1994-1998 and 1998-2001. Implications of the application of “mathematical method” for the appointment of low bidder. - Assessment on cost and quality of design of construction projects co-funded by EC through CSF I and CSF II. - Assessment of contractor firms profitability for the period 1996-2000 - Evaluation of the MEPPPW’s quality structural interventions - Assessment of CSF I and CSF II co-funded projects cost (periods 1989-1993 and 1994-2000) - Athens metro construction cost analysis - Egnatia highway tunnels cost analysis 2.1.3 Reports/studies conducted for Public Sector Authorities - Adequacy of construction sector human resources potential (12/2000) Assessment prepared for MEPPPW and Athens 2004 Organization on the scope of estimating the adequacy of locally available skilled and unskilled labor for the timely completion of 2004 Olympic games infrastructure. - Compilation of draft technical specifications for building works (2003) This project was funded by the School Buildings Organization. 2.1.4 Reports/studies prepared for Private Sector - Assessment for human resources of the construction sector. The assessment was performed on behalf of H Class Contractor’s Companies and focuses on specialties and skill level distribution, availability and adequacy of most required skills. There are also included proposals for measures to be taken to better adjust the existing potential to construction sector needs and requirements.

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2.2. Scientific and Technical Support Services to the MEPPPW - Projects awarded to CEI in the framework of MEPPPW’s Action Plan for the modernization and improvement of construction projects implementation processes. a) Elaboration of a comprehensive list of technical specifications, intended to constitute the basis of Standard National Technical Specifications. Utilizing documents applied in recent major construction contracts as start-up text, a new series of up-to-date specifications was developed, with uniform structure and systematic reference to European Standards applicable to incorporated materials and testing procedures. The new documents contain the following main chapters: 1. Work description – definitions. 2. Acceptance criteria for incorporated materials 3. Works execution methodology – requirements for completed work 4. Quality control requirements for completed work acceptance 5. Work specific requirements for health, safety and environmental protection 6. Method of measurement. 440 titles were delivered in total, covering the majority of construction items. More than a hundred highly experienced engineers worked for 2 years to accomplish this projects comprising of 6.000 pages of documents. b) Up-to-date and completion of the existing work items pricing system. For the modernization of the Public Works budget system a multilevel pricing system based on unit prices analysis was developed while new articles had been added and old ones removed. The list of descriptive work items for pricing that prepared, including more than 10.000 articles, was based upon systematic investigation of significant number of bills of quantities of various construction projects covering all construction sectors. This project consists a systematic approach in Greece towards a National Code of Measurement, and can be adopted by the Ministry of Public Works for the implementation of the new pay-items lists, which have been putted recently in issue. In parallel, CEI developed a series of parametric cost estimating tools for basic work items (e.g. earthmoving works, formwork, pipe laying, dredging etc), enabling cost evaluation under variable word conditions and constraints. c) Statistical preliminary project cost estimation techniques. Scope of the project was the evaluation, further exploitation and development of an existing cost estimating data base system based on bulk project entity final cost (e.g. highway in km, bridge spam in m, etc) characterized by most significant attributes (e.g. road section width, trespass terrain type, road design speed, etc). CEI analyzed the predominant attributes for bulk project entities of various types and categories as well as the operational specifications of the structured data base system and formulated proposals for the organization and functions of the systems operator/administrator. A small scale pilot run of the system was also performed, using available data from recently completed projects. The results deemed to be satisfactory. CEI also assessed the impact of site expenditure on total project cost and developed a parametric indirect cost estimation tool, on the basis of fundamental project characteristics and magnitude. d) Implementation of educational and training programs for the construction sector. The project comprises of the following sections: 1. Allocation of target groups, characteristics analysis, present state evaluation. 2. Investigation of training / education requirements for each target group.

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3. Preparation of detailed proposals for required training/educational courses. - Legal frame governing private construction. In order to proceed in the issuance of Presidential Decrees provisioned in pertinent legislation on building construction, MEPPPW assigned CEI to prepare drafts for PDs regulating the implementation of Private Construction Contractors Registry and Defining obligations and liabilities of the Contractor towards the project owner. CEI studied the private construction projects framework and submitted to the MEPPPW, beyond the foresaid drafts, a detailed report on the following topics: - Establishment of subcontractors registry - Certification of skilled laborers - Enactment of minimal technical specification for private construction works - Modernization of building permission granting procedures - Enactment of construction log keeping for private works - Enactment of “green box” installation in all buildings (containing as brief drawings and structure modifications log after completion) - Extension of construction materials quality controls at the procedure site. - Operational Program for the Information Society (OPIS) CEI was appointed by MEPPPW as coordinator of Ministry’s General Secretariats for the promotion of funding and implementation of MEPPPW’s projects coming under EU Operational Program OPIS. - Revaluation of Contractors of Public Works C.E.I. provided technical assistance to the MEPPPW for the revaluation procedures of the Greek licensed contractors for Public Works, according to pertinent legislation and participated in the appointment of consultant-auditor for the contractor’s licenses registry of the Ministry. - Compilation of technical record forms for Public Works Contractors CEI designed the technical record forms anticipated by pertinent legislation for the valuation/revaluation of Public Work Contractors and promoted the implementation of the relevant procedures. - Assignation of CEI as consultant of Ministry’s Dpt for Contractors Registry CEI was appointed by the Ministry as consultant to the Department for contractors registry, and played a significant role in the implementation of the revaluation procedures of all Greek licensed contractors, under the provisions of the new Law introduced in the year 2001. - Supplementary auditing of top-ranking Public Works Contractors evaluation data files By ministerial decree, CEI undertook the supplementary auditing of top-ranking Public Works evaluation data files and the examination of submitted applications for license ranking. - Processing of Public Works Contractors financial and economic capability data. CEI evaluated data submitted by Contractors’ companies in assistance to MEPPPW for licensing and classification and timely revaluation according to pertinent legislation. - Simplification of the contractors acceptance procedures in public works tendering. CEI contributed in the implementation of an ESP system for contractor’s license validity control and license classification updating and the issue of Ministerial Circulars specifying all relative procedures. - Elaboration of proposals for a new framework for construction machinery licensing and circulation CEI analyzed the existing legal frame and prepared detailed proposals for bylaws and amendments. - Study of implications to road construction cost due to the fluctuation of asphalt prices. CEI analyzed the impact on asphaltic works cost due to the variation of fuel prices – and consequently asphalt prices – and submitted a detailed proposal to MEPPPW for asphaltic works unit prices escalation.

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Third International Conference on Construction in the 21st Century (CITC-III) “Advancing Engineering, Management and Technology” 15-17 September 2005, Athens

Invited Presentation 2

Athens Metro base project and extensions Project structuring and management characteristics George Leoutsakos Interface Coordination Manager, Attiko Metro AE, Athens, Greece

Abstract Two new metro lines (lines 2&3) were opened for operation in the city of Athens in three phases (12 Km 14 stations in January 2000, 4 Km - 5 stations in November 2000, 1 Km - 1 station in April 2003), thus completing the “Base Project” of the Athens Metro. Following that, an additional 9 Km with 4 stations plus a connection with the new Athens Airport utilising the line and track of the suburban railway were delivered for operation in July 2004. Following 12 years of intense engineering and construction activities, overshadowed by the wealth of archaeology of the city, a 3.1 billion EURO program came to full realisation and together with the existing metro line 1, provided the transportation backbone of the city, while also serving the 2004 Olympics. The present paper describes the structure of the above projects both from the owner side and the contractors side, outlining all main contractual and project management viewpoints, describing relative advantages and disadvantages of various forms of project structuring and demonstrating the importance of efficient organization and project management to large scale projects. Lessons learned on swift decision making, risks assessment and control measures, contractual structuring and consortiums structure characteristics, through various phases of the projects from civil works through to commissioning are put into perspective on an ambitious 2.5 billion EURO extensions program.

Keywords Metro, project management, contracts, schedule

1. Project description The Athens Metro lines 2 & 3 are shaped in form of a large “X” intersecting at the centre of the city and crossing the existing line 1 at three stations, while at the northern part of the city, line 3 interfaces with the suburban railway and the ring road of Athens (see fig.1). The two new lines are serving over 700.000 passengers daily with train headways varying from 3 to 10 minutes, in addition to 400.000 passengers served by line 1. Also 300.000 less car trips are performed daily, with a substantial decrease in pollution levels, despite the increase in car ownership and the rapid development of road networks. With these projects a serious effort was made in Athens to clear its reputation of a city with endless traffic jams and air pollution severe enough to cause harm to its inhabitants as well as to its historic buildings. The two new lines are all underground. The Base Project tunnelling was done mainly by two 9.5 m diameter TBM’s which opened 12 Km of tunnels, while shorter tunnelling sections of 3.3 km were done by Cut and Cover and NATM methods. For the extensions, one 9.5 m diameter TBM-EPB was used for 3.4 Km, while the Cut and Cover and underground NATM excavation methods were also extensively used for the remaining tunnels. Out of the 24 stations that have gone into operation, 18 were constructed by Cut & Cover, 5 using the NATM method while the central station of Syntagma at the intersection of lines 2 & 3, was partly constructed by the Cover & Cut method and partly by NATM. Most stations are side platform while three stations only being of the centre platform type. Granite, light coloured marble, ceramic tiles and stainless steel have extensively been used in all stations to enhance their architectural image, blending with neo classical buildings in the central parts of the city or with more modern buildings in the outer parts of the city.

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The extensions stations have followed a more “open type” of architecture with natural light and bioclimatic architecture principles applied to the design. The main Electomechanical and Railway systems included Ventilation and Air Conditioning, Lifts and Escalators, Drainage, Pumping and Water Supply, Traction power, Medium voltage – 20 KV power supply, Power distribution and lighting, Signalling with Automatic Train Supervision (ATS), Automatic Train Protection (ATP) and Automatic Train Operation (ATO), Radio - Telephone Communications and mobile telephones, CCTV, Clocks, Public Address, SCADA control systems, Automatic Fare Collection of the open non-barrier type and Trackwork Fourty nine (49) six-car 106 m long trains form the rolling stock, 28 of which were procured under the Base Project and 21 under a separate tender. 7 of the trains are dual voltage trains serving line 3 up to the airport and operating under two different power supply systems, one under the metro 750 V DC network and one under the suburban line 25 KV AC network. There are two depot facilities, one in line 2 which includes stabling and light/heavy maintenance and overhauling, covering an area of 120.000 m2 and one at the northern end of line 3 which is only for train stabling.

2. Project structuring and management

LUMPSUM TURNKEY PROJECT

FUNDING

The project structuring and related management was different in the Base Project and the extensions projects constructed so far, and the main characteristics of each alternative are analysed below. EU and EIB

Ministry of National Economy

Ministry of Public Works

Contractor (Olympic Metro Consortium)

9 German companies

Owner (Attiko Metro) & Management Consultant

9 French companies

5 Greek companies

Engineering Consultants

Other Public Companies

Fig.2: Athens Metro Base Project Management structure

The Base Project was a design and construct lumpsum turnkey project. The project owner (ATTIKO METRO), assisted by a management consultant, was supervising the Contractor (OLYMPIC METRO) who constructed the project. The process was monitored by a special committee with officials from the Ministry of Public Works, the Ministry of National Economy, the European Investment Bank (EIB) and the European Union (EU). The figure below indicates in a schematic form the project structure.

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ATTIKO METRO, the owner and client, is a state owned company set up by the government by law in 1991. The company supervised the project implementation and performed design review, construction supervision, project control, quality control, secured the necessary funding and dealt with all public relations with the public and other third parties. A management–technical consultant blended within the company for providing project management and technical expertise. The total cost of the Owner, including management and other consultants as well as setting up and organizing the subsequent system operation, approached 10 % of the total project budget. The Contracting Consortium which built the project comprised of 23 companies (9 German, 9 French and 5 Greek) appearing as one entity in front of the Owner. The Consortium was divided into a centralized management group and 7 other sub-groups covering Engineering, Civil Works, Power Supply, Low Voltage, Rolling Stock, Trackwork and the Depot. Several internal relationships were set up at various levels between the above companies and subgroups, each one being a different profit center. Overall the Consortium did deliver a safe, reliable and good quality end product with minor problems, with low-moderate budget overruns and moderate-significant time delays, while significant improvements were made to what was initially specified.

FUNDING

For the extensions projects which comprised the four outwards extensions of the Base Project lines 2&3, the project structuring was radically different with each extension being implemented through a series of parallel and independent contracts, as shown below : EU and EIB Ministry of Public Works Ministry of National Economy

ATTIKO METRO

Financial Monitoring Body

Management consultant

Owner (Attiko Metro)

PROJECTS

Engineering Consultants

Extension 1

Extension 2

Extension 3

Extension 4

Other Public Companies

CONTRACTS

CIVIL WORKS

ELECTRO_ MECHANICAL

ROLLING STOCK

VARIOUS

Fig. 3: Athens Metro extensions projects management structure

The civil works contracts were distributed geographically (one or more contracts per metro extension) while the electromechanical and railway systems contracts were distributed by discipline, remaining the same throughout the four metro extensions for reasons of compatibility, equipment similarity and easier maintenance. The necessary additional rolling stock was procured under a separate contract. The funding mechanisms for the projects remained essentially the same with a 33

specialised government body being created for the financial monitoring of the project, together with other large infrastructure projects. The figure below indicates in a schematic form the extensions projects structure. Under this type of project structure, the Owner was fully responsible for providing the coordination and interfacing between all the various contractors and third parties, for technical, contractual and time scheduling issues. The risk for the correct and timely project implementation as well as the overall cost control was also with the Owner, while each Contractor had only segmental responsibility for his part. The result showed that the projects were implemented in a timely manner (approximately 6 months design, 6 months tender, 24 months of Civil Works and 24 months of Electromechanical and Railway systems installations until operation start, leading to a total phased duration of 4 years), with very limited cost overruns and an overall reduced cost. This process imposed a huge technical, contractual, time scheduling and project control effort on the Owner. A technical consultant assisted the Owner in the above efforts, without however being directly related to the management of these projects.

FUNDING

In the future extension projects of the Athens Metro, a different project structure shall be followed. According to this concept, each one of the new geographically separate extensions projects shall be executed by a main contractor who will undertake the responsibility and the risk for the civil works construction and the main electromechanical and railway systems installation, while only selected few railway systems (signalling, radio telecommunications, fare collection, SCADA control systems) shall be implemented through separate contracts, each for a special reason related to safety and compatibility with existing systems. The project structure for the future extensions is shown in the figure below. EU and EIB Ministry of Public Works

ATTIKO METRO

Management consultant

Owner (Attiko Metro)

Engineering Consultants

PROJECTS CONTRACTS

Ministry of National Economy

Financial Monitoring Body

Extension 1

Extension 2

Extension 3

Extension 4

CIVIL WORKS AND ELECTRO_ MECHANICAL

SPECIFIC RAIWAY SYSTEMS ROLLING STOCK

VARIOUS

Fig. 4: Athens Metro future extensions projects management structure

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Other Public Companies

3. Comparison of alternatives on project structuring and management Comparing of the three different structures and related strategies for implementing a metro project as presented above, reveals a multitude of advantages and disadvantages for each option and indicates that a careful assessment is necessary in every case, for selecting the best option. In a grouped manner the main characteristics for each option are as follows : 3.1 Design & Build Lumpsum Turnkey Contract This type of project structuring is recommended when the Owner has limited technical experience of the project and hence all responsibilities for the project are with the Contractor who has been selected considering also his experience for carrying out the required works. However even in this “turnkey” case, experience has shown that a significant part of the risk which translates into additional cost, is transferred back to the Owner as large scale and multi-disciplinary contracts often have gray areas and are subjected to different interpretations. The following points also characterize lumpsum turnkey contracts : • All design and construction processes involving several companies and subcontractors, their technical and contractual handling and their coordination are under the full responsibility of the Contractor. This results in overhead costs being increased substantially due to the large staffing requirements, complicated design production and long winded cost control procedures. • A large number of Contracting Consortium members results in substantial internal inertia within the Consortium, preventing it from responding quickly to design faults and design evolution issues, project scope modifications, contractual matters and in anything that deviates from the signed contract. In the interfacing of the various groups and subgroups, responsibilities and delays for multi-discipline tasks tend to be transferred from one member to another, often creating significant friction, and eventually impacting the project contractual targets and the Owner. In such an environment the Owner inevitably bears an increased responsibility for taking necessary steps to ensure that the Contracting Consortium remains functional and able to deliver the works as the Consortium multiple profit centres, are always eager to share the payments but not the risks. Hence, it is not recommended to have many (more than approximately 5) members • Large size Consortiums often have the power to negotiate with the Owner and be successful in imposing their opinion on critical and especially on sensitive cost issues • Due to the overall responsibility, and undertaking the majority of the risk, lumpsum turnkey contracts are usually more expensive. This however allows the Owner to limit his direct resources. 3.2 Multi – contract project implementation For this type of project structuring to be successful, the Owner must have very good knowledge and experience of all disciplines and areas of the project. It usually leads to cost savings although strict project management is necessary as the parallel handling of several contractors requires extreme contractual clarity regarding schedule deadlines and phasing of the works, as well as simultaneous adherence to the time schedules by every one of the parties involved. The following points also characterize this type of project implementation : • The overall design and construction processes involving several companies through several contracts are the responsibility of the Owner. This on one hand is very favourable because the Owner gets the final product as he has planned it, however this results in substantial staffing requirements for the design review, the contractual handling and the cost control procedures for the various contractors. • The overall risk is with the Owner • The Owner is in a stronger position to negotiate with one out of a multitude of contractors than in the case of the lumpsum turnkey contract where there is only one large size Contractor 3.3 Project implementation with few contractors This alternative is a compromise between the two above options A and B and utilizes the advantages of each. Its main characteristic is that there is one main contractor doing the majority of the works for a specific project, undertaking also all the coordination requirements and the majority of the risk. Certain safety critical

35

or other special disciplines are left outside the main contract and are awarded as separate specialized contracts. The size of the project and the related contract and cost however is selected to be such that the Contractor can be managed effectively. This type of contract structuring is currently being implemented in the next generation of metro extension projects of the Athens Metro, and is expected to ensure fast track project implementation without however imposing an excessive burden on the Owner. Irrespective, however of the type of project and contract structuring that is followed in the implementation of metro projects there are lessons learned for the future projects that carry significant importance, and some are outlined below : • Changes in the contract scope of any contract should be well evaluated and controlled as they form a prime reason for budget and schedule overruns, usually significantly greater than originally anticipated. Schedule changes in a multi-contract environment needs delicate and careful handling. • Resolution of contractual issues is a time consuming and costly process for both Owner and Contractors. A proactive use of the resources is likely to reduce the number and severity of problems before these arise, to the benefit of both sides. • Time and money spent in interpreting contract terms is inversely proportional to the clarity of the contract terms themselves. It is thus well worth investing in the preparation of coherent and unambiguous contract documents. In multi contract environments the coordination and interfacing between the related parties is an especially important part of the documentation. • Comprehensive risk assessment before construction and application of effective risk control measures, should be an integral part of the project evolution process, involving both Owner and Contractor. Classification of risks is imperative and project managers should prioritise and deal with issues that matter the most. Besides archaeology, the main sources of schedule and budget overruns are usually ineffective project management (both from the Contractor and Owner sides), unforeseen ground conditions and unsuitable construction methodologies and their implementation. • The coordination and management tasks of the Owner bringing together public sector companies (eg utility companies), obtaining all permits, preparing and expediting all town planning, land use and environmental impacts should be well defined and planned from the project inception. • Owner-Contractors relations based on trust and fair judgments are the foundation of problem solving processes.

4. Time Schedules Time schedules are an indispensable tool for managing large scale projects, enabling both Owner and Contractors to follow the project progress, implement actions for mitigating delays and keeping the contractual monitoring in order. Metro project schedules range in size from approx. 100 activities during the project planning stage to several thousand activities during the implementation stage (eg 6000 activities for a section of 6.2 Km with 7 stations). Project time schedules are especially important in multi contract environments offering a tool for managing the time windows available to each Contractor for his works. The actual summary schedule for the first part of the turnkey lumpsum Base Project, and indicating typical time durations for the main categories of the works delivered in Jan. 2000 (so called “Partial Opening” with 12 Km with 14 stations on 2 lines) is shown below. The dominating impact of archaeology is observed, indeed being one of the main reasons for a 2 year project delay. The time schedule for a specific 1.2 Km section “Syntagma – Monastiraki” of line 3 completing the Base Project, although sensitive and very critical for the operation, suffered extreme delays due to a combination of several adverse factors, including archaeology, sensitive adjacent and overlying structures, very unfavourable ground conditions requiring state of the art excavation techniques at low advance rates, as well as the significant redesign of this station (Monastiraki), following the deletion of the original terminal station of line 3, again due to archaeological reasons.

36

' 92

' 93

' 94

' 95

' 96

' 97

' 98

' 99

' 00

' 00

' 01

' 02

' 03

' 04

Start Design Tenders Archaeology Utility relocations Tunnels Civil Works Stations Civil Works Trackwork E/M systems Train Controls Architectural finishes Integration testing Trial running Operation start

Contract award Design Archaeology Utility relocations Tunnels Civil Works Stations Civil Works Trackwork E/M systems Train Controls Architectural finishes Integration testing Trial running Operation start

Fig.5: Actual project time schedules for Base Project (left) and Extensions (right) A fast track philosophy was employed in the extensions projects, implemented in the 2000-2004 period under a multi contract approach, and is shown in the summary schedule above. The smaller size of the extensions projects, the much reduced archaeological impact, the easier public utility relocations and the effective project management, resulted in a much reduced overall time for the projects implementation, as well as in very limited budget overruns, demonstrating that the lessons learned during the Base Project construction were well applied to the extensions projects.

5. Conclusions Three different project structuring and management alternatives were presented from the recent implementation of metro projects in Athens, covering lumpsum turnkey and multiple contracts approaches to the contractual and management structuring for these projects. Their related characteristics, advantages, disadvantages and special points were outlined and compared, indicating the best suited environment and conditions for their application. Representative project time schedules indicated that the technical and non technical lessons learned from the Base Project implementation resulted in efficient project management which in turn led to a timely and within budget completion of the first phase metro extension projects.

References ENR World Projects,(1993), “Athens digs through its ancient heritage to construct a subway” ENR publication Ratzer, P. (1998), “ Management of Risk in Projects”, Tunnel Mngmt Int., Nov. 98 Anderson, J. (2000) “Tunnel Project Procurement and Processes : Fundamental Issues of Concern” Tunnel Manamgement International.

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1. Cost Engineering and Financial Issues 1.1 Cost and Financial Management

in development of so-called product configuration systems which can be used in quotation of a new building. Establishing of analogical system could help to increase competition on construction market, to reduce prices and to ensure better orientation on market for customers in other countries. Consequence will be higher satisfaction on consumer’s side as well as on the side of authorities. The objective of this study is to share advantages of Czech classification system.

Paper 1:

Preventing Corruption in Public Works —Rediscovering the Function of Surety Bonding System Dr. Xiaomei Deng Vice-director, Engineering Management Institute, Department of Construction Management, School of Civil Engineering, Tsinghua University, Beijing

Paper 3:

The Assessment of the Public Order Tender Jana Korytárová Doctor, Institute of Structural Economy and Management Brno University of Technology, Faculty of Civil Engineering, Brno, Czech Republic

Abstract: Surety bonding system is a familiar tool on transferring the performance risk of a contract in construction area, but seldom is it to be connected with preventing corruption in construction area. The author find that: when a well designed surety bonding system works together with, the open tendering and biding procedure for public works can become much more transparent and efficient. However, in normal practice, there are some factors causes the system malfunction in term of anti-corruption, such as low penalty, improper surety, or the monopoly of surety market. The paper will discuss these factors and their impacts in detail, and will give advice on how to improve the function of surety bonding system so as to use it as an anti-corruption tool in construction area.

Alena Tichá Doctor, Institute of Structural Economy and Management Brno University of Technology, Faculty of Civil Engineering, Brno, Czech Republic Abstract: The evaluation of economical expediency of the public order tender is in detail described by no legal norm. This paper presents methodology of economical expediency evaluation orders of public procurements by methods of value analysis and cumulative economic criterion.

Paper 2:

Contribution of Czech Construction Classification on West-European Construction Market

Paper 4:

Prices of Structural Works and Production Costs

Tomáš Hanák Ph.D. Candidate, Institute of Construction Economy and Management, Brno University of Technology, Faculty of Civil Engineering, Brno, Czech Republic

Leonora Marková Head of institute, Institute of Construction Economy and Management, Faculty of Civil Engineering, Brno University of Technology, Brno, Czech Republic

Abstract: Czech Republic had centrally planned economy before 1989. During this period detailed classification system was created for industrial production. Structural classifications are still used, more than 14 years after transformation to free-market economy, mainly in the construction sector. In fact these classifications are huge databases containing various information about materials, prices, etc. Databases are currently actualized and ensure well transparent market and competition. They allow comparing prices of construction materials from various manufacturers; this eventuates in final price reduction. Czech system can inspire West European countries. Good example is Denmark, a country with a developed free-market economy. But construction market is controlled by oligopolistic markets structures or cartels even if it is against the law. Old market structures impede the development of the construction industry. An interesting use of these information can be

Abstract: The creation of the prices of the structural works stems from the costs and the profit. To achieve the profit from the sale of the structural works it is necessary to manage the costs of the production with regards to the coverage of the costs and the profit with the prices of the sale. Therefore the firm has to create the conditions for the check of the costs that are projected into the prices, and by this way to avoid the disproportion among the actually achieved costs of the structural production and the costs from the costs calculation. Paper 5:

Cost Management under Construction Management (CM) Contracts- in the Case of Large Building Projects in Finland

38

Juhani Kiiras Professor, Construction Economics and Management (TKK/CEM), Helsinki University of Technology, Espoo, Finland

vendors) by determining a proposed multiplier coefficient. This technique uses procurement criteria and weights according to the relevant legislative framework for government procurement in order to provide a multicriteria value score for each vendor. The application of the proposed approach is demonstrated through an illustrative example concerning the procurement of earthmoving equipment (i.e. bulldozer). The primary advantage of this approach is that it incorporates a degree of subjectivity into the evaluation process as it is outlined into the existing legislative framework.

Matti Kruus Project Manager, Indepro Ltd Construction Management Consultants, Helsinki, Finland Pekka Huovinen University Teacher, International Construction Business (TKK/ICB), Helsinki University of Technology, Espoo, Finland

Paper 7:

A New Approach for Setting a Tunnel Excavation Tender Price List

Abstract: Frequently, large building projects are started and going on without knowing the actual occupiers or before the decision makers are able to determine their final design requirements. In Finland, construction management (CM) contracts are increasingly used. CM contracts allow the start-up of construction works even when room infill designs have not been finalized. However, the costs of CM projects cannot be controlled by tender prices only, as in traditional general contractor lump sum projects. Herein, a new model is introduced for managing costs in CM projects from programming to handover. The adoption of this model enables (1) to set a target price (cost frame) based on a flexible (modifiable) building program (brief), (2) to check a given overall design by comparing a building element estimate (BEE) against the target price, (3) to break down the BEE into a target budget (cost plan) according to design packages, (3) to check the design solutions of each design package against the target budget by using a detailed bill of quantities and a detailed cost estimate, (4) to break down these cost estimates into procurement packages, and (5) to utilize the expertise of suppliers and subcontractors to develop the design solutions in order to meet the target budget.

Cleopatra Petroutsatou Doctoral Candidate, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens Nikolaos Rachaniotis Mining – Geotechnical Engineer, Egnatia Odos SA Sergios Lambropoulos Assistant Professor, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens Abstract: Egnatia Motorway is 680 km long and crosses Northern Greece from west to east; its budget is expected to reach € 6 billion. A 35 km long critical mountainous section has been tendered early this year with a budget of € 500 million. It includes, amongst other structures, thirteen twin tube tunnels totaling 22 km bore length. The predominant construction method to be applied is that of drill and blast, following the general principles of NATM. The Owner of the project has already the experience of 56 km constructed tunnel bores in various geological – geotechnical conditions. Based on this experience and taking into account the financial and time restrictions for the completion of the Motorway, an innovative strategy has been established for tendering tunnels in the above section. Tunnelling is a combination of expertise in several disciplines with the ability to fit different elements together. The emphasis of conventional approaches is on “quality production tunnelling”, with exact contours and cost optimization. In the new approach both the Price List and the Technical Specifications have been thoroughly examined and modified, resulting in: first, premium price in the “lighter” excavation and support categories; second, rational handling of individual elements, i.e. forepoles, face bolts, micropiles, which are costly for the Owner and time consuming to install for the Contractor; and third, improved profit for quality contours. Operation analysis was used to

Paper 6:

Vendor Selection in Construction Projects Odysseus Manoliadis Associate Professor, Department of Geotechnology and Environmental Engineering, Technological Education Institute of Western Macedonia, Kozani 50100, Greece Ioannis Tsolas Lecturer, School of Applied Mathematics and Physics National Technical University of Athens, Greece Abstract: The aim of the present paper is to model the vendor selection problem in construction projects using a proposed approach based on a multicriteria selection technique. The applied approach is a multicriteria rating technique, which used for calculating a normalised economic bid for the alternatives (i.e.,

39

estimate the cost per linear meter for each designed excavation and support category. The results triggered changes in the specifications. Clear guidelines for the construction works were defined as well as a set of parameters, which directly affect cost; these will be monitored during construction to enable early correction measures when needed.

shortcomings. A number of approaches have been developed for calculating the value of potential investments, and real options have been used in many application areas, including applications to planning and design of engineering systems, and especially to construction projects. Although it is almost unanimously recognized that real options analysis has transformed thinking about investments, criticisms have also been addressed to assumptions on which is based, questions have been raised about its extent applicability, many related issues have not been fully explored and difficulties remain for its practical application. We critically review the fundamental assumptions under the traditional approach, the decision analysis and the real options model, pointing out simultaneously the difficulties for the implementation of real options analysis.

Paper 8:

The Social Discount Rate and Project Appraisal K. P. Anagnostopoulos Assistant Professor, Department of Production and Management Engineering, Democritus University of Thrace, Xanthi, Greece F. Kalpakis Undergraduate Student, Department of Production and Management Engineering, Democritus University of Thrace, Xanthi, Greece

Paper 10:

Longest Path Time-Cost Analysis of Construction Projects with Generalised Activity Constraints

Abstract: The choice of the appropriate discount rate is crucial in project appraisal given that cash flows occur at different points in time. The traditional valuation regularly employs the weighted average cost of capital to estimate the discount rate in private investments. On the contrary, disagreements exist in the academic literature about the discount rate to be used for public sector funded investments. The choice of social discount rate is of special interest both for the funding of public projects and the Public Private Partnership (PPP) procurement under the condition that a PPP project should only be accepted when it delivers value for money. The intent of this paper is to discuss the discount rate choice in public infrastructure, one the one hand, by examining some aspects of the social discount rate, such as the cost of capital and the time preference rate approaches, and, on the other hand, to discuss recent studies that have important implications for project evaluation, i.e. the discount rate is not constant but it declines over time.

Athanasios P. Chassiakos Assistant Professor, Department of Civil Engineering University of Patras, Patras, Greece Abstract: Time-cost analysis is an important element of project scheduling, especially for lengthy and costly construction projects, as it evaluates alternative schedules and establishes an optimum one considering any project completion deadline. Existing methods for time-cost analysis have not adequately considered typical activity and project characteristics, such as generalised precedence relationships between activities and external time constraints, that would provide a more realistic representation of actual construction projects. The present work aims to incorporate such characteristics in the analysis and proposes a method for developing optimal project time-cost curves based on critical path analysis. In this method, the project is described through a matrix where all paths are tabulated with respect to activities. The project matrix includes values of 1, 0, or -1 depending on the type of precedence relation between an activity and its adjacent ones within a path. Integer programming is employed to choose among all activity crashing alternatives those which reduce path durations to a desired project length value with the lowest possible crashing cost. Evaluation results indicate that the method can be reliably applied to construction projects with the above characteristics.

Paper 9:

On the Strengths and Weaknesses of Real Options Analysis for Investment Decisions K. P. Anagnostopoulos Assistant Professor, Department of Production and Management Engineering, Democritus University of Thrace, Xanthi, Greece Abstract: Traditionally, project evaluation is based on discounted cash flow analysis. However, this technique may not be proper for investment evaluation since fails to take into account uncertainties, irreversibility of decisions and managerial flexibility. Real options analysis is considered as a credible alternative to these

Paper 11:

A Prototype System for the Prediction of Final Cost in Construction Projects

40

Georgios Aretoulis PhD Candidate, Civil Engineering Department, AUTh, Thessaloniki, Greece

the existing process and removing them. In order to do this, the study first identifies detailed activities in each phase of the curtain wall construction process: architectural design, curtain wall engineering design, off-site manufacturing of curtain wall units, on-site construction and maintenance. Secondly, reasons and sources of such wastes and problems are found and listed according to the Muda system, which was developed by Toyota. Thirdly, the relative importance of each reason and source is evaluated by the Analytic Hierarchy Process (AHP) method based on experts' opinion. Finally, the results indicate the reasons for and source of wastes and problems, and in which phases it is more critical to improve the efficiency of the overall curtain wall construction process.

Demos Angelides Professor, Civil Engineering Department, AUTh, Thessaloniki, Greece Glykeria Kalfakakou Associate Professor, Civil Engineering Department, AUTh, Thessaloniki, Greece Georgios Fotiadis Assistant Professor, Civil Engineering Department, AUTh, Thessaloniki, Greece Konstantinos Anastasiadis Assistant Professor, Civil Engineering Department, AUTh, Thessaloniki, Greece

Paper 13:

Abstract: Civil engineering projects include several uncertainties and risks, due to the special characteristics of construction industry. Time and cost are two parameters that could potentially lead to successful and conforming to regulations production of projects. It is imperative to estimate correctly the development and the final outcome of these parameters. Various tools have been applied in order to create trustworthy estimations. In this paper, a prototype system will be presented, which aims at predicting the final cost, based on information available at the bidding stage. The methodology will be based on a combination of regression analysis and case based reasoning in order to produce models for the prediction of final cost. These models will incorporate a process view and will depend on activity based costing methodology to estimate the process cost.

M. J. Kapp Institute for Construction Engineering and Management Swiss Federal Institute of Technology Zurich, Switzerland

Support Tool for Comparable Life Cycle Oriented Decision Taking

G. Girmscheid Professor, Institute for Construction Engineering and Management Swiss Federal Institute of Technology Zurich, Switzerland Abstract: Up until now, the calculation of life cycle costs has generally taken no account of the uncertainties associated with the individual costs. The ensuing, purely deterministic aggregate cost is submitted to the decision-maker and generally also selected for the delivery. Using this type of calculation, there is no way of knowing whether, and with what probability, this figure will be correct. In contrast, the model for the analysis of the life cycle costs (LCCA model) developed at the Institute for Construction Engineering and Management at the Swiss Federal Institute for Technology Zurich makes it possible to provide much more in-depth advice, and, given a competent interpretation of the results, it can serve as a worthwhile decision-making aid for investors, property developers and, in the future, life cycle system providers. It is divided into three elements: structural framework of costs, forecasting, and simulation model. The ensuing probability density resp. probability distribution functions for the aggregate life cycle costs enable the various alternatives to be evaluated with a view to their probability of occurrence, and the associated costs to be assessed for investors, property developers and life cycle service providers.

Paper 12:

Efficiency Improvement through the Life-cycle Process of Curtain Wall Construction Yea-Sang Kim Professor, Sungkyunkwan University, Seoul, Korea Soon Oh Jung Assistant Professor, Kyungbok Position College, Pochon, Korea Chang Duk Kim Professor, Kwangwoon University, Seoul, Korea Jae Youl Chun Associate Professor, Dankook University, Seoul, Korea

Abstract: The purpose of this study is to improve efficiency of the curtain wall construction through its life-cycle process by finding wastes and problems in

41

the taxpayers can be guaranteed value for money. This necessitates economic comparisons in various phases of the project. In the case of pure street maintenance and rehabilitation works without any investment, qualitative decision-making criteria become more important. In order to be able to include a meaningful and objective consideration of these criteria, the value benefit evaluation is subjected to Monte Carlo simulation within the economic comparison. The use of bandwidths and their simulation reveal comprehensive scenarios that can be used as a decision-making aid by the public decision makers.

Paper 14:

Lifecycle Oriented Construction and Maintenance of Traffic Tunnels – Strategy Assessment to Develop Tunnel Drainage Systems with Low Calcification and Minimal required Maintenance Tobias Gamisch Research Assistant/Doctorate, Swiss Federal Institute of Technology Zurich, Switzerland Gerhard Girmscheid Professor for Construction Management and Process Technology in Civil Engineering, Swiss Federal Institute of Technology Zurich, Switzerland

Paper 16:

Reducing Overruns In a Volatile AEC/FM Market: Can Vendor Planning and Estimating Software Help?

Abstract: Scaling in tunnel drainages causes high cleaning and repair expenses, constrains traffic and can endanger tunnel and roadway stability. Based on deductively explained scaling processes, and taking the special demands of the new preventive maintenance method “hardness stabilization” into account, design requirements for drainages have been developed with the aim of achieving “low scaling”, “durability” and “maintenance support”. Hardness stabilization reduces the failure probability of the drainages by decreasing scaling risk, whereby the stability of both the tunnel and the transportation route is increased. Using hardness stabilization, a reduction of more than 46 per cent in maintenance expenses can be achieved and the repair expenses will be sustainably reduced, the drainage durability can be significantly increased, the utilization capacity is enhanced and the life cycle of the whole structure is increased. The presented methods and guidelines therefore have a great life-cycle effect for tunnels and can, furthermore, be transferred to other structures.

Wilfred Masuwa Matipa Lecturer – Quantity Surveying and Commercial Management, University of Central Lancashire, Faculty of Design and Technology, Department of Built Environment, Preston, Lancashire, United Kingdom Abstract : The 21st Century has seen an intensified usage of IT systems in almost all human operations. Faced with the pressure of management of information and or lack of it, highly competitive and complex work environments coupled with the multidisciplinary nature of the work place and diverging interests, post-modern managers have resorted to designing gadgets and/or systems that do not think independently per se, but are faster in information processing. Such systems support managers in dealing with the challenges of project related work, more so in developing nations where economic volatility is usually the norm. However, the availability of the much-needed information and communication technology (ICT) systems essential to cost engineering are pricey and may not be guaranteed in certain situations; hence optimising available systems cannot be over emphasised.

Paper 15:

PPP in Switzerland - Economic comparison for street maintenance and rehabilitation delivery models J. Dreyer Institute for Construction Engineering and Management Swiss Federal Institute of Technology Zurich, Switzerland

This research looks at the possibility of using basic vendor software for planning (scheduling) and estimating to reduce time and cost overruns in the Architecture, Engineering, Construction and Facilities Management (AEC/FM) industry in Zambia.

G. Girmscheid Professor, Institute for Construction Engineering and Management, Swiss Federal Institute of Technology Zurich, Switzerland

An Experimental Investigation on Aggregate Gradation and W/C ratio on Strength and Cost Effectiveness of Concrete

Abstract: For performing public works project delivery models such as Public Private Partnerships (PPP) offer opportunities to increase efficiency. However, PPP should only be selected as the project delivery form if

Sunil Kumar Thattanappillil Graduate Student, Department of Construction Science Texas A&M University, College Station, TX 774843-3137, USA

Paper 17:

42

Mohammed E. Haque, Ph.D., P.E. Associate Professor, Department of Construction Science, Texas A&M University, College Station, TX 774843-3137, USA

insurance cost of very large construction projects. Workers’ compensation loss control program is key to the success of any OCIP. This study examines the average amount paid on workers’ compensation claims for OCIPs, and compares it with the average amount paid on workers’ comp claims in traditional policies. Claim information was obtained from a large national insurance carrier. A comparison will give owners who are considering using an OCIP a clear picture of what they can expect. The streamlining and simplification of the claims process in an OCIP reduces the amount claims are paid on average, but whether the reduction is significant enough to produce real savings, is less clear.

Abstract: The selection and mixing of the aggregates has a dominating influence on the quality and price of the concrete. The aim of aggregate selection and combination is to make concrete mix with lowest void content, which in turn will lead to the lower cement consumption, porosity and shrinkage, and thus the concrete with the higher performance and the lower price. In addition to gradation of aggregates, the water/ cement (W/C) ratio also plays a major role in determining the strength of concrete. This paper presents the results of an experimental investigation to evaluate the effect of aggregate gradation and W/C ratio on strength parameters and possible reduction in cost of the concrete. Gap graded and continuously graded aggregate has been used to prepare concrete with different W/C ratio to study the strength parameters. Intermediate graded aggregate was blended with gap-graded aggregate using an iterative process to obtain well-graded or continuously graded aggregate. The compressive strength and shrinkage specimens were prepared from the gap graded and well graded concrete, and tested in accordance with the ASTM test procedures. The study showed relatively high compressive strength and less shrinkage for specimens prepared from well graded concrete compared to the specimens prepared from gap-graded aggregate. Slump test and German drop test were conducted immediately upon mixing concrete and it was found that the slump and the number of drops of the concrete with well–graded aggregates is greater than that of gap graded aggregates – an indicator of workability of concrete. A well graded aggregate played a dominant role in concrete workability and influenced the minimum cement content needed in concrete and thus a reduction in price of the concrete mix. The study concluded that the use of dense graded aggregate in the preparation of concrete can reduce the cement requirement by approximately 17% in the mixture proportion, and hence a reduction in cost without compromising the strength of the concrete.

1.2

Decision Making and Risk Analysis

Paper 19:

Comparative Analysis of BOOT and BOT System for Project Delivery of Public Projects Mihir Soneji Student, Faculty of Health, Engineering and Science. Chandrakant Bhuta Associate Professor, Faculty of Health, , Engineering and Science. Victoria University, Melbourne, Victoria, Australia Abstract: Due to increasing worldwide trend of privatisation through the concept of Public Private Partnership (PPP), most of the projects in developed countries are being delivered through Build Own Operate and Transfer (BOOT) as a procurement tool. In BOOT private party returns the entire facility to government after certain period of operation. This involves high amount of risks through out the project at construction, operation and maintenance stages of the project. Effective legal, political, financial scenario planning and sound risks mitigation strategies can overcome most of the project risks. In a developing country such as India, projects are still being delivered through an annuity kind of Build Operate and Transfer (BOT) system, in that mainly government takes traffic risk for the project and the project developer has only the right to maintain the facilities at an agreed fee. Main objective of this study is to compare the standard BOOT delivery system with the annuity BOT system used for projects in India. Two transport area projects from developing countries namely India and Colombia have been selected as case studies. A hypothetical Net Present Value (NPV) for government after the concession period has been determined. The analysis indicates that for Indian situation in BOOT kind of project delivery after the concession period (once facility returns to government) have a negative NPV within assumed economic life of infrastructure. The study concludes that a win-win solution is feasible

Paper 18:

Expected Reduction in Workers’ Compensation Claims for Owner Controlled Insurance Programs Gouranga C. Banik and Frank J. Bickerstaff School of Architecture, Civil Engineering Technology and Construction, Southern Polytechnic State University Marietta, GA 30060 Abstract: Owner Controlled Insurance Programs (OCIPs) are an effective method of reducing the

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through a BOOT system for delivery of a project with careful planning and proper constraints.

compared. Data from the comparison are used for development of risk breakdown structure (RBS) which can facilitate process of risk management in construction projects. RBS can be applied as a tool for determination of key internal or external risk sources, so as a base for developing strategy for dealing with risks in project. Following findings about several the most frequent risk sources the paper analyzes scope of their impacts and provides information about related risk drivers.

Paper 20:

Key Management Decisions Crucial for the Success or Failure of Construction Projects Prof. Mladen Radujkovic Vice Dean, University of Zagreb, Faculty of Civil Engineering, Zagreb, Croatia Ing. Maria Parova Czech Technical University, Faculty of Civil Engineering, Prague, Czech Republic

Paper 22:

Abstract: The paper deals with decision-making processes in the sphere of project management in construction industry. The current status of the construction sector, and main changes of business and market trends recently operated in the central and south-eastern European countries, are briefly presented in the introductory part of the paper. A particular emphasis is placed on results obtained through analysis of changes in business operation, including changes in management sector. There is a strong perception that the management process in construction sector has not as yet reached appropriate levels so that, compared to other sectors, construction is more vulnerable to negative deviations in the project realization process. Key decisions taken in the process of project management are fully considered and analyzed, based on their significance for the project success or failure. A detailed description of 10-15 key sources of possible project failure is given in the central part of the paper, including recommendations for management actions needed for the successful administration of projects. Brief conclusions as to future steps to be taken to improve project management practices on construction projects are given in the final part of the paper.

Ayman H. Nassar Assistant Prof., Higher Technological Institute, Department of Civil Engineering,, 10th of Ramdan City, Cairo, Egypt

Expert Views and Analysis of the New Yellow Book (Plant Contract)

Abstract: FIDIC has updated the standard forms and published four new Standard Forms of Contracts which are suitable for the majority of construction and plant installation projects around the world. "The Conditions of Contract for Electrical and Mechanical Works" including Erection on Site (The Yellow Book (1987)) was renewed to "The Conditions of Contract for Plant and Design – Build" which is for Electrical and Mechanical Plant and for Building and Engineering Works Designed by the Contractor. Owners, builders, engineers and designers should have the knowledge and skill to negotiate a favorable contract. The objective of this study is twofold: the first is to evaluate the efficiency of the New Yellow Book to avoid the falling of projects outside the scope of the new forms; the second is to identify the significance of the different clauses of the New Yellow Book (The Plant Contract) in projects that have been designed by the contractor. A questionnaire was designed in order to capture the feedback of construction contract experts in Egypt. The responses of forty participating experts were further analyzed. The opinions of the experts were focused on the importance and significance of FIDIC clauses to the Egyptian market.

Paper 21:

Risk Breakdown Structure for Construction Projects Prof. Mladen Radujkovic Vice Dean, University of Zagreb Faculty of Civil Engineering, Zagreb, Croatia

The study evaluates an importance factor for each individual clause of the FIDIC, depending on the expert’s responses. The study is viewed as a valuable asset for any international organization aiming at joining the Egyptian Construction industry through The Plant Contract (FIDIC).

Ivana Burcar Assistent, University of Zagreb Faculty of Civil Engineering, Zagreb, Croatia Abstract: The paper analyzes current approach and problems in risk management process in construction projects. The most frequent negative consequences of risks, such as cost and time overruns, are discussed. The results of risk source researches that have been performed in Croatia since 1996 are presented and

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Anaptixiaki S.A., Katerini, Greece

Paper 23:

A DSS Using Multiple Time Periods for Measuring Project Uncertainty

Betty A. Partsalidou General Director- Architect, Pieriki Anaptixiaki S.A., Katerini, Greece

Odysseus G. Manoliadis Associate Professor & Chair , Department of Geotecnology and Environmental Engineering, Technological Educational Institute of Western Macedonia, Kozani, Greece

Glykeria Kalfakakou Dep. Professor, Department of Civil Engineering, Aristotle University of Thessaloniki, Thessaloniki, Greece

John-Paris Pantouvakis Assistant Professor, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens, Athens, Greece.

Abstract: The main objective of a contract is to establish the rights, duties, obligations and responsibilities of the parties and to allocate risk. The acceptance of an obligation or duty brings with it the acceptance of a commensurate risk, which is the risk of being unable to fulfill the obligation or duty because of one’s own inadequacy, incapacity, inadvertence, or error, or because of interference from outside sources or events. For these reasons, risk management was introduced as an important element of a project’s contract preparation phase as a system which aims to identify and quantify all risks to which the project is exposed so that a conscious decision can be taken on how to manage risk.

Abstract: This paper presents a decision support system based on hierarchical planning and control for the assessment of multi project management under uncertainty. The Proposed DSS contains three hierarchical levels namely the planning, management and operational level. Applying a hierarchical DSS at each level the utilization of the resources in an effective way in the long term medium and short term is achieved. Specifically at the planning level decision have to do with the strategic goals to be pursued in the system management and with the ways to achieve them: overall long term sustainable policies are set at this level. The scope of Management is the utilization of the resources in an effective way in the short and the medium term, according to the directive issued by the Planning stage. In the operational level the DSS is mostly applicable the implementation of the Management decisions in real time operation and it is generally highly structured, so that fixed rules can be applied at this level. Queuing theory is used to estimate the size of the time buffers. Some principles of development of the methodological framework are formulated. This formulation represents a significantly different view of project planning from the ones implied to traditional project management. A small computational example that focuses on maximizing the probability of successful decision making of a project based on minimizing the number of resource conflicts is presented. The problem formulated here has importance and direct application to the management of a wide variety of projects where there is significant uncertainty.

This paper analyses the process of dealing with contractual risks, applied in co-financed projects by specific European Union’s Funds. Fit-for-Purpose contractual relations are illustrated, leading to a different contract for each project. Risk apportionment is the overall objective of that process, using both allocation of risk and structure of power analysis. During the contract preparation, the three-stage model of Risk Management is used; identification, analysis and response, having as fundamental issue to allocate the risk through the selected funding method, strictly imposed by the European Directives. Paper 25:

Construction Sector Risk Considerations on PPP Projects in Greece Athena Roumboutsos Lecturer, University of the Aegean, Chios, Greece Konstantinos P. Anagnostopoulos Assistant Professeur, DemocretianUniversity of Thace, Xanthi, Greece

Paper 24:

Risk Management Analysis during Contract Preparation of Co-financed Projects

Antonios – Athanassios Milonas Graduate Student, University of the Aegean, Chios, Greece

Konstantinos C. Zapounidis Doctoral Candidate, Department of Civil Engineering, Aristotle University of Thessaloniki, Thessaloniki, Greece - Project Manager – Civil Engineer, Pieriki

Abstract: In Greece, as in other PPP markets, risk allocation is foreseen to become a key issue in the development of Public-Private Partnerships. The

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attitudes, beliefs, values and expectations of stakeholders, both private and public, have an impact on risk considerations. The present paper explores and registers the risk considerations of the Greek construction companies considering their involvement in Greek PPP infrastructure projects. The investigation was conducted through a questionnaire survey. The research findings reinforce the results of other surveys carried out on the subject and should enable public sector clients to establish a more efficient framework for risk allocation, thus reducing negotiations prior to contract award.

A. P. Vavatsikos Civil Engineer, Ph.D. Candidate, Democritus University of Thrace, Xanthi, Greece Abstract: Contractor prequalification, i.e. the elimination of incompetent contractors from the bidding process according to a predetermined set of criteria, is a frequently used procedure of selecting contractors, because it seems to minimize risks and failures. In this paper a model based on the Analytic Hierarchy Process (AHP) is proposed for contractor prequalification, which is: a/ Complete, in the sense that various criteria are included, in order on the one hand to ensure the quality of the completed product and, on the other hand, to avoid contractors bankruptcies quite often due to the lowest tender price methods, or bargains between applicants. b/ Easy to use, in the sense, first, that it requires no prior knowledge of multicriteria methods from the potential users; and, second, it minimizes subjective judgments, since state administrators having to be accountable for their decisions dislike the use of ambiguous evaluation criteria.

Paper 26:

Risk Management process applied on Motorway Service Areas Petros S. Evgenikos Civil Engineer - Research Associate, Department of Transportation Planning and Engineering, National Technical University of Athens, Athens, Greece David J. Ling Professor, Transportation Group, Department of Civil and Construction Engineering, University of Manchester Institute of Science and Technology, Manchester, United Kingdom

Paper 28:

Contractors’ Pricing for Time-Related Contract Risks at the Tendering Stage Maria C Y AU Lead Quantity Surveyor, Franklin + Andrews (HK) Ltd, Hong Kong

Abstract: Risk Management, has become a formal and discrete process in the overall management of construction projects. The requirements by project stakeholders for better quality and lower cost in less time require the identification, analysis and subsequent mitigation of potential risks that may jeopardise a construction project. Transportation sector can benefit from the application of Risk Management and both social and financial benefits for motorway users and investors could be derived. The objective of this research is the development of a framework for risk management in the development of Motorway Service Areas, based on evaluation of best practices, and its assessment through a pilot application to an existing Motorway Service Area operating in Greece to prove its validity. Risks related to the development of Motorway Service Areas are identified, analysed with CASPAR software package and appropriate measures of risk mitigation are proposed. First results showed that systematic approach to Risk Management could support potential developers of Motorway Service Areas to make viable decisions about relevant investments.

Dr. Edwin H W CHAN Associate Professor, Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong Abstract: The contractors’ pricing for contract risks in tenders determines how much the employers have to pay for the risk shifts, regardless of whether the risks materialize or not. Therefore, understanding the factors influencing the contractors’ pricing for contract risks is crucial for employers to optimize the cost effectiveness of risk allocation in contracts. This study investigates the factors that contractors perceive to be important when they are pricing ‘time-related’ contract risks and the relative importance of these factors with reference to previous studies on bid / no bid decisions and mark-up size decisions. Questionnaire survey is designed for the target list of government approved general building contractors to collect data from the Hong Kong construction industry.

Paper 27:

An AHP Model for Construction Contractor Prequalification

The importance ratings are pre-defined by percentages of inflation / deflation in prices, so the scale of implication of the identified factors can be worked out. As a single factor may have two-sided implications

K. P. Anagnostopoulos Assistant Professor, Democritus University of Thrace, Xanthi, Greece

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(both inflating and deflating the prices) for which they can be in unequal scales, two extreme scenarios are introduced for each factor to examine its potential in pushing prices upwards and downwards. It is anticipated that two sets of importance ratings, one for inflating pricing and one for deflating pricing for time-related risks, will be worked out.

Dr. Runeson, Goran Professor, Faculty of Design, Architecture and Building, University of NSW, Sydney, Australia

Paper 29:

Abstract: This paper studies the relationship of changes in housing demand and changes of lagged supply, in order to analyze discontinuous changes of housing prices using cusp catastrophe model. Lagged supply makes housing price fall due to decreasing in demand for housing. Four phases of housing prices are defined in order to understand the impacts of lagged supply on housing prices. The four phases are the stable, the bubble, the unstable and catastrophe phase, and the recovery phase. Yearly data of private housing price index, take-up and vacant units collected from the Hong Kong government publication have been used to test the model. The analysis suggests that it is important to manage the lagged supply to meet the current demand requirements in order to minimize housing price fluctuation.

Dr. Leung, Andrew, Y T Professor, Department of Building and Construction, City University of Hong Kong, China

Profit Forecasting Model for International Projects Using Multiple Regression Analysis and Neural Networks Du Yon Kim Ph. D Student, Department of Civil Engineering, Yonsei University, Seoul, Korea Sang Min Yeom Graduate Student, Department of Civil Engineering, Yonsei University, Seoul, Korea Seung Heon Han Associate Professor, Department of Civil Engineering, Yonsei University, Seoul, Korea Myung Jin Chae Senior Researcher, Construction Engineering & Management Research Dept., KICT, Gyeongi, Korea

Paper 31:

Abstract: International projects are inherently exposed to unpredictable and complicated risk scenarios. To minimize the possible losses due to the risks, most of construction firms have their own procedures or primitive methods of screening potential projects nominated. The screening rules are usually based on the engineers’ and decision makers’ experience and knowledge which are often very subjective and lack of scientific basis. Systematic risk analysis of international projects should entail the processes of defining, analyzing, and controlling of various risk factors. In this paper, a scale-based profit forecasting model for international project is presented. Many successful and unsuccessful international project cases with respect to profitability are collected. Then, scale-based profit forecasting model are developed through a multiple regression analysis and a neural networks. Finally, this paper presents the comparative analysis of these two models, and furthermore provides lessons learned to improve profitability.

Andrzej Minasowicz PhD. CEng., Vice-Director for Scientific Affairs, Institute of Construction Engineering and Management, Warsaw University of Technology.

Chosen Techniques of Construction Risk Analysis

Jacek Zawistowski MSc. CEng., Lecturer, Institute of Construction Engineering and Management, Warsaw University of Technology.

Analysis of Discontinuous Housing Prices

Abstract: The paper presents some issues related to analysis of construction investment profitability, including detailed approach to probability methods related to risk analysis and management. The analysis was performed with the use of Net Present Method (NPV), considering influence of variables on profitability of the investment. Statistic calculations were carried out with the use of Monte Carlo method and the Crystal Ball computer software. Results of the research leading to simulation NPV value, are shown on a diagram, described by a probability distribution and additionally enriched by Tornado analysis. Conclusions from the paper describe very useful tools for analysis of construction investment profitability.

Dr. Ge, Xin Janet Lecturer, School of Built Environment, UNITEC, New Zealand.

Quantitative Risk Management Model for General Contractors

Paper 30:

Paper 32:

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Th. A. Busch Institute for Construction Engineering and Management; Swiss Federal Institute of Technology Zurich, Switzerland

statistically attempts to explore in what way, and to what extent does the national culture value orientations influence construction workers’ attitudes and behaviours. The paper presents the results of a questionnaire survey, administered in Pakistan to determine whether construction workers’ intentional behaviour could be explained by their attitudes and perceptions. The paper then proceeds with investigating the influence the national culture has on identified attitudes and behaviours.

G. Girmscheid Professor, Institute for Construction Engineering and Management Swiss Federal Institute of Technology Zurich, Switzerland Abstract: European general contractors are facing two major challenges: First, in their operational business several general contractors gathered significant losses by building turn key projects. It became obvious that risks cannot be covered by a global, unspecified risk premium. Secondly, clients of the European cnstruction industry are increasingly asking beside low investment costs for minimized operating costs during the life-cycle of a building. This will encourage general contractors to provide life-cycle oriented total concepts as part of their core business in the future. Taking into account cost, schedule, quality and functionality risks associated with risk of cost guarantees for the operating phase demands integral risk management that encompasses both the project risks and general corporate risk. The basis for corporate risk management is the systematic risk management process at project level. The subsequent aggregation of risks within the whole company leads to a bandwidth of total corporate risk costs. Risk bearing capacity is determined by the resources available to cover any occuring risks. The potential risk burden of a company must be adjusted to match its risk bearing capacity. Quantitative risk management permits general contractors to attain their planned budget in a risk-oriented way and thereby improve their commercial results.

2. 2.1

Paper 34:

Economic aspects of Safety in the Construction Industry

Dr. Georgios D Panopoulos Managing Director, Management Force, Athens, Greece Dr. Richard T Booth Professor of Safety and Health, Aston University, Birmingham, England Abstract: This paper addresses the economic impacts of construction safety in Greece, based on a methodology for determining the overall costs of safety, namely the sum of the costs of accidents, the costs of effective preventive efforts, and the costs of safety management failures not involving an accident. The methodology was applied to three construction projects in Greece to test the methodology and to offer some preliminary evidence on the business case for safety. The methodology incorporated systematic criteria for determining which costs are counted in the overall cost of safety. The results suggest that while the overall costs of safety for a principal contractor were very small compared with the overall project budget, but up to 11.5% of gross profits. Those projects that appeared to manage safety most cost-effectively achieved the lowest overall safety cost. The practical work was supported by a theoretical analysis that showed that in the construction industry there is a plausible business case that the pursuit of ‘zero accidents’ is justified on economically.

Construction Project Management Safety and Quality Management

Paper 33:

Predicting Safe Work Behaviour: The Case of Pakistan

Paper 35:

The Health Status of South African Construction Workers

Tauha H. Ali Doctoral Candidate, School of Engineering, Griffith University, Gold Coast, Australia

Theo C Haupt Research Coordinator, Cape Peninsula University of Technology, Faculty of Engineering, P.O. Box 1906, Bellville 7535, South Africa.

Sherif Mohamed Associate Professor, School of Engineering, Griffith University, Gold Coast, Australia

Claire Deacon Managing Member, OCCUMED cc; P O Box 40108, Walmer 6065, Port Elizabeth, South Africa.

Abstract: It is widely accepted that a proper attitude toward safety predicts safe work behaviour. Also, there is strong evidence that the national culture affects one’s perception, attitude and behaviour. This paper

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John Smallwood Head of Department, Department of Construction Management, Nelson Mandela Metropolitan University, P.O. Box 1600, Port Elizabeth 6000, South Africa.

management processes. Specifically, duty holders have responsibilities under the five key stages of the construction process. At each stage, information and knowledge management is key to the successful performance of duty holders. Several research efforts have been made towards providing ICT tools that will aid H&S information management. However, evidence suggests that the effectiveness of (H&S) management would require recalling and integrating knowledge of different duty holders relating to the various construction processes. It is thus hereby proposed to investigate current and potential ICT impacts on health and safety information and knowledge management. A literature review of available ICT tools for (H&S) management is hereby presented, while a pilot study of awareness, uptake and impacts of the tools is also envisioned as a means of developing a framework for further enhancement of construction H&S knowledge management.

Abstract: Construction has a reputation for being a particularly unhealthy industry because its rate of work-related illness is one of the highest across all industrial sectors. Health problems among construction workers are prelevant because of the number of high-risk activities involved and the peripatetic nature of the workforce. Acute and chronic health conditions experienced are generally non-occupational. However, these conditions could be exacerbated by construction activities, ultimately leading to absenteeism, poor performance and construction workers leaving the industry due to ill health. The nature of construction work involves, inter alia, building, repairs, renovating, modifying, and demolishing of structures. These activities involve work that varies from fully mechanized activities to hard physical labor. Work sites vary from, for example, being in isolated locations to being in the midst of heavy traffic. This paper reports on studies of two convenience samples of construction workers that sought to establish the health status of construction workers. The authors found that workers complained of several occupational and non-occupational diseases and presented with a range of musculoskeletal disorders, respiratory problems and skin infections. These diseases negatively affected work productivity in the industry and increased absenteeism. Further, the majority of workers required referral, many for unresolved non-occupational such as various skin, upper and lower respiratory and musculoskeletal conditions. Recommended interventions include regular medical surveillance as part of employer-driven health promotion programs.

Paper 37:

Smoke Control Systems at the Miami International Airport

Mario Berrios P.E., M.Sc., Florida International University, Miami, Florida, USA Juan Zheng Florida International University, Miami, Florida, USA Weihua Mao Florida International University, Miami, Florida, USA Abstract: The smoke control systems at the Miami International Airport are based on the South Florida Building Code and other pertinent codes, standards and guidelines. The Miami International Airport has about 4 million square feet of existing construction and the new construction underway with additional 4 million square feet, which makes a total of 8 million square feet of construction. The new construction has smoke control systems. Part of the existing construction has smoke control; certain existing areas are going to be fitted with smoke control systems. The smoke control systems consist of exhaust of smoke from atria, pressurization of elevators shafts and certain corridors, and stair pressurization. The remaining areas use exhaust in the area of origin of fire and pressurization around the perimeter.

Paper 36:

The Impact of Information and Communication Technology (ICT) on Construction Health and Safety (H&S) Knowledge Management Dr. David Oloke Lecturer, School of Engineering and the Built Environment, University of Wolverhampton, Wolverhamtpon, UK Hao Yu Doctoral Researcher, School of Engineering and the Built Environment, University of Wolverhampton, Wolverhamtpon, UK

Paper 38:

Quality Culture Auditing for Construction Sites

Abstract: The introduction of the Construction (Design and Management) – CDM Regulations of 1994 has significantly complemented efforts by the construction industry to reduce construction site fatalities and improve overall health and safety

S.L. Tang Civil and Structural Engineering Department, The Hong Kong Polytechnic University Hunghom, Kowloon, Hong Kong, China

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Raymond T. Aoieong Department of Civil & Environmental Engineering, University of Macau, Macau, China

The first research programme developed a quality management system for a 195 km, C$650 million public-private highway mega-project in New Brunswick. The quality management system used information and communication technologies in which the developer was required to achieve a specific quality score of 99% to qualify for a full monthly payment.

M.H. Ng Civil and Structural Engineering Department, The Hong Kong Polytechnic University Hunghom, Kowloon, Hong Kong, China Abstract: Successful implementation of a construction quality management system depends very much on the culture of the construction organization concerned. This can be easily understood because although an organization has the best quality system, the success still lies on how the organization (top management and employees) implements it. The collective attitudes and beliefs of employees towards quality are commonly described as the quality culture of an organization. Hence, the quality management system and its principles must build on a good quality culture. The question is: how to measure quality culture of a particular construction site? “Culture auditing” is proposed in this study to be used for measuring the state of the quality culture of a given construction site. The purpose of this paper is to report the development of a trial quality culture audit questionnaire and then conducting a pilot audit for three construction sites so as to study the feasibility of culture auditing in the Hong Kong construction industry. The result of this pilot study indicates that the major obstacle to implementing a quality culture audit is the lack of expertise or resources in conducting the audit and the lack of employees’ understanding, education and training in carrying out the auditing process. Since this study is of a pioneering nature, it may be too early to make any solid conclusions. It is expected, however, the local construction industry may benefit from using quality culture audits in their organizations for improving their quality culture.

In the second research programme, a collaborative research partnership was created between the Canadian Department of National Defence and the Construction Engineering Group at the University of New Brunswick. The design and construction, maintenance, operational, and rehabilitation life cycle costs were acquired from 215 buildings. Formulae and a scoring metric were developed to quantify the degree of quality. Paper 40:

The Confucianism Quality Management Philosophy in ISO9000 and Total Quality Management (TQM) in Hong Kong Johnny Y. N. Mok Academic Coordinator, Building Construction, School of Higher Education, Hong Kong College of Technology International, Kowloon, Hong Kong Hebe How Lecturer, Department of Building & Real Estate, Hong Kong Polytechnic University, Kowloon, Hong Kong Abstract: The concepts of quality assurance in the Chinese civilization have existed for more than two thousand and five hundreds years since the days of the two great Chinese philosophers Confucius (551-479 BC) and Mencius (390-305 BC). Nowadays, the ideas of Confucius philosophy which were advocated 2,500 years ago are manifested in ways that this ancient Chinese conceptual framework of quality management philosophy has become the basis of our economic activities in the modern society. The realization of quality assurance in project management has enabled the construction industry to deliver quality services which in turn made possible for the awareness of total quality management in the field of project management for the follow-up of global economic integration.

Paper 39:

Towards a Quality Management System in Construction John Christian Emeritus Dean and Professor, Honorary Research Professor, Department of Civil Engineering, University of New Brunswick, Fredericton, NB, Canada Abstract: Two separate facets of quality, which would make a significant difference in achieving and maintaining long term quality were studied by the Construction Engineering Group at the University of New Brunswick in Canada. One research programme covered the establishment of a quality management system with measured quality scores, and the other study included the detailed measurement of the life cycle costs of many buildings.

The objective of this paper is to evaluate the Confucian philosophy of quality assurance and to explore its implications on today's quality assurance concepts with specific reference to ISO9000 and Total Quality Management (TQM) in the Hong Kong construction industry from both conceptual and implementation perspectives.

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Elevated sound levels can permanently damage hearing if the exposure is of sufficient duration. Elevated sound levels are commonly referred to as noise and noise is generally regarded as unwanted or undesirable sound. In the context as it is used here, noise will refer to elevated sound levels that can do harm to human hearing.

Paper 41:

Analysis of Smoke Control Systems at Airports Mario Berrios P.E., M.Sc., Florida International University, Miami, Florida, USA Juan Zheng Florida International University, Miami, Florida, USA

To develop a hearing conservation plan, it is important to understand the various sources of elevated sound levels or noise and their relative magnitudes. It is also important to understand some of the basic principles of sound. In the study being described here, the focus was on the measurement of the noise propagation of selected construction power tools under varying conditions. The objective was to provide some basic information on sound propagation that occurs on many construction sites.

Weihua Mao Florida International University, Miami, Florida, USA Abstract: Studies show that death by burns has fallen in the USA by 50% and death by smoke only by 15%. In order to save life, smoke control systems are highly recommended in all kind of buildings. Smoke control systems at airports are exceptionally important as thousands of people take flights at airports every day. A brief review of fire/smoke accidents at airports in the past reveals the extreme importance of smoke control systems at airports. Stairwell pressurization, zoned control systems and roof mounted air handling systems are nested with fire sprinklers, speakers, smoke detectors, air conditioning systems and fire alarm systems to help control smoke at airports. Enclosed public areas, ramp level tug drives, concourse /corridors, and automated people mover stations have been identified as having unique design requirements and therefore will have different design and testing criteria established for each. There are also several computer programs in the market to simulate the spread of smoke. It is expected that with these different smoke control systems and techniques, smoke at airports will be greatly minimized and controlled.

Paper 43:

Improving Efficiency of Materials Management Using CDPM Methodology Mohammed Kashif ul Asad Research Assistant, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia. Dr. Sadi Assaf Professor, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia. Abstract: Materials management professionals must consider the need for quality improvement in the areas of materials requirement and planning, purchasing, shipping, receiving and inventory. Customer Driven Project Management (CDPM) can prove its point, if integrated with materials management. CDPM is the integration of quality management environment and project management system. To achieve effective materials management, the top management must recognize and give priority to the importance of customer satisfaction. This effort involves segregation of all the steps in materials management and applying CDPM to each phase independently. This approach can improve the quality standards of managing materials. This paper attempts to integrate the CDPM and materials management. The resulting structure tries to look at the materials managing problems from customer point of view and gain a better understanding in increasing the efficiency of materials management.

Paper 42:

Noise Generated by Construction Power Tools Jimmie Hinze M. E. Rinker, Sr. School of Building Construction, University of Florida, USA Abstract: It is generally widely known and accepted that hearing capacity is diminished with exposure to elevated sound levels over a period of time. This is an issue that should be a major concern to every employer who has employees who are exposed to elevated sound levels in the workplace. This is especially true in the construction industry where there are numerous sources of elevated sound, included heavy equipment, power tools, generators, air compressors, and motors of various types. While this is a concern that is addressed by some construction firms, the area of hearing conservation is one in which most construction firms have not devised specific plans.

Paper 44:

Impact of Organisation Size and TQM Maturity on Implementation of TQM: Empirical Findings From The UK Construction Related SMEs.

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Dr Nicholas Chileshe Senior Lecturer, School of Environment and Development, Sheffield Hallam University, Sheffield, UK

Dr Nicholas Chileshe Senior Lecturer, Faculty of Development and Society, School of Environment and Development, Sheffield Hallam University, Sheffield, S1 1WB, UK

Professor Paul Watson Head of Quality of the Built Environment Division, Faculty of Development and Society, Sheffield Hallam University, Sheffield, UK

Abstract: Despite numerous implementation frameworks (Yusof and Aspinwall, 2000) for TQM existing within the manufacturing and service literature, those found were not suitable and were not systematically developed for SME's. Furthermore, little research has been undertaken to determine if these frameworks can be applied to UK Construction related SMEs. This can be inferred as the question of what TQM "really is" has not interested the academia to a large extent (Hellsten and Klefsjo, 2000). The data collection carried out in the descriptive stage was used with the specific aims of testing the adequacy of the TQM concepts developed in relation to the phenomenon, and the hypothesised linkages among the TQM concepts. Structural Equations Modelling (SEM) approach was employed using the AMOS software to translate these identified relationships into structural equations. This enabled the identification of the contributory effect of each of the Ten Deployment constructs towards effective implementation of TQM. By applying the extension to the basic measurement model to include modelling systematic shared variance among indicators, evidence about the extent of bias that could not be obtained using traditional approaches such as partial correlation and multiple regressions was obtained. The factor loadings were used to determine the unit contributions of each construct towards TQM. In additional to testing the validity and reliability of the structural model through Confirmatory Factor Analysis (CFA), the structural equation modelling (SEM) was utilised to verify the construct validity of scales and to test relationships among variables and unobservable variables. SEM was used to determine the relative influence of each of the ten deployments constructs on the quality manager's perception of the overall TQM deployment. Knowledge of the interactions among the ten deployment constructs can be a valuable diagnostic tool in addressing the effectiveness of each initiative alone to further enhance competitive success.

Abstract: Studies on impact of organisational size and TQM maturity present mixed findings, with the main two schools of thought being the fact that there would be a difference between early adopters and late adopters (i.e. Powell 1995; Taylor and Wright 2003; and Reed et al 1996). The other school claiming that there is no difference between early adopters and late adopters, According to Taylor (1997). While some studies find support for a correlation between organisation size and TQM implementation, in contrast several studies have failed to find support for a direct relationship between organisation size and implementation of TQM. In addition, most of the studies conducted are in large organisations and the impact of time-lag on benefits of TQM implementation remains unexplored. Thus the motivation for this paper is to address the identified omissions. The main aims of this paper are twofold; first to ascertain whether the perceived TQM success was associated with the length of time since adoption of TQM and organisation size, and secondly to determine whether the strengths of model relationships are affected by TQM duration and organisation size. Time-lag analysis is then addressed through contingency analysis, which involves an examination of the invariance of levels of the TQM deployment constructs across sub groups based on TQM maturity. The classification of organisations based on Ahire and Dreyfus (2000) is as follows; Recent TQM implementers (3 or few years of TQM) and Experienced TQM implementers (more than 3 years of TQM) The findings indicate that there is little difference in the deployment of TQM based on the organisational size and duration of the program. Secondly the time between inception of the quality initiative and accruing of benefits, and the variation in a casual and the consequent variation of the caused construct is not great. Time lag is considered in this TQ-SMART model as evidenced by the inclusion of an indirect path, which emanates from the executive commitment and reaches the organisation performance variables through various intermediate variables

Paper 46:

Impact of Contract Language on Implementation of TQM in the Building Construction Industry Hazem Elzarka, PhD, PE, LEED AP Associate Professor, Department of Construction Science, University of Cincinnati, Ohio, USA Abstract: A construction contract is typically composed of several clauses that describe the right and responsibilities of the parties signing the contract with regard to several important issues. These issues include for example method and time of payments to

Paper 45:

Critical Success Factors of TQM: Regression Analysis versus Structural Equation Modelling Approach

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the contractor, quality control requirements, mechanisms of resolving disputes, expected project completion date and insurance requirements. Such contract clauses are found in any construction contract regardless of the project delivery system utilized. The language of contract clauses can greatly affect the quality of the project. Contract clauses that unfairly transfer risk to one party adversely affect working relationships, increase the number of claims, prevent the free flow of information necessary for the successful completion of a quality project and in many cases are not upheld by the court in case of legal disputes. The paper discusses unfair contract clauses that should be avoided and effective contract clauses that should be utilized.

Management Program, Faculty of Built Environment, University of New South Wales, UNSW Sydney NSW 2052 Australia Teck-Heng Lim Formal undergraduate student, Faculty of Built Environment, University of New South Wales, Australia Abstract: The competitions in the construction industry has evolved from company and project based to supply chain based and therefore developing long-term supply chain alliance relationship within construction supply chain members become vital in order to remain competitive in the industry. This paper aims to understand the main contractors’ perceptions on their long-term relationships with the sub-contractors/suppliers. Fifteen face-to-face semi-structured interviews were conducted with representatives of 8 main contracting firms. A Content Analysis Software “CodeMiner 0.9 Beta” and a spreadsheet software Excel were used to analyze the information gathered from the interviews. The research found that the main-contractors recognize the importance of having long-term relationship with their subcontractors to “enhance the organisational competitive advantages, maximize profit, to enhance customer satisfaction, improve quality, and to gain strategic market position”. The research also found that the key elements for establishing successful long-term relationships include: “trusting behaviour between parties, honesty, top management commitment, open communication and integrated information system” and the proactive strategies for establishing long-term relationships include “organize regular meetings, provide incentive financial scheme, maintain constant contacts, taking ownership of the program and well structured documentation”.

Paper 47:

A Survey on Employee Satisfaction and Productivity in the A/E/C Industries Željko M. Torbica Associate Professor, School of Engineering, Computing and Construction Management, Roger Williams University, Bristol, Rhode Island, USA Jeannette M. Rivera Staff Architect, BC Architects AIA, Inc. Coral Gables, Florida, USA Abstract: This study utilizes a survey that portrays the variety of issues that may cause employee dissatisfaction and productivity loss. The survey included architecture, engineering, general contracting, and subcontracting companies that are engaged in construction projects in Miami, Florida. A total of 80 surveys were distributed, with a return number of 62. The study suggests that the major causes of productivity loss in the job place are poor communication and management. Employees expressed that they would be more productive if their responsibilities were increased or if their tasks were more challenging. Employees want to be trusted and relied on. They also want the opportunity to grow with their companies. The study also suggests that although better pay may get employees to work more productively, routine (repetitious) work and lack of responsibilities will drive them back to a cycle of unproductive work.

Paper 49:

Optimising Tender Process Outcomes through Effective and Efficient Organisational and Project Knowledge Identification and Capture Andrew J. Wilson Research Fellow, Research Development Unit, RMIT University, Melbourne, Australia.

Developing Main-Contractor -- Subcontractor Long-Term Relationships: Current Practice and Strategies

Abstract: The Australian construction industry typically utilises the practice of competitive tendering to facilitate its procurement process. To improve competitive tendering outcomes, a systematic approach to the use of knowledge should be undertaken that effectively identifies, captures, and uses relevant project and organisational knowledge.

Dr Patrick X.W. Zou Senior Lecturer and Director, Master of Construction

Effective knowledge identification and capture within an appropriate knowledge management system should

2.2

Partnership and Contractual Issues

Paper 48:

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utilise suitable knowledge mapping methodologies and project history formats. Knowledge mapping procedures would determine the level of tacit knowledge imbedded in project and organisational activities associated with the tender process, particularly the key, tacit-rich, activities of project cost and duration estimation. To effectively capture this tacit knowledge in a useable format, document-based project history processes must be undertaken that gather information dynamically in a real-time environment and that are enabled through dedicated organisational resources and appropriate Information and Communication Technologies (ICT)

application are presented. Paper 51:

The Process of Partnering: Gluing Contracts, Organizing and Finansing Together Christian Koch Associate Professor, Section for Planning and Management of Building Processes, Department for Civil Engineering, Technical University of Denmark, Denmark Stefan C. Gottlieb Research Associate, Department for Process and Innovation, Danish Building Research Institute, Denmark.

The effective and efficient identification and capture of organisational and project knowledge utilising dedicated knowledge management processes and infrastructure, and appropriate ICT, will enable the optimisation of tender process outcomes through the compilation of more accurate estimates of project cost and duration.

Christian Thuesen Doctoral student, Section for Planning and Management of Building Processes, Department for Civil Engineering, Technical University of Denmark, Denmark

Paper 50:

Developing Public Private Partnership in Croatia - A pilot public building project

Abstract: Taking a practice based theory and political process approach, this paper discuss partnering as an example of a complex project operation, characterized by processual interactions between an emergent conceptual frame and the project's operational activities. Drawing on two case studies, it is analyzed how the governance frame of partnering projects is a combination of partnering elements, traditional contracts and financial arrangements. On the operational level these elements is continuously mobilized, negotiated and stabilized in their intersection with the practices and skill basis for the project. It is shown how incentives becomes especially problematic for the architects due to tensions between new and old contractual forms, and that project management levels are more successful in one case in mediating between operations and governance frames than in the other. The research implies that the governance frame and the operations of the projects are mutually interacting throughout the projects, in contrast to the traditional sequential phase breakdown structure in the partnering literature. The contradictory governance becomes a recurrent barrier for project operation management; forcing project participants to develop new sets of skills in dealing with partnering, thus entering an emergent process of developing the partnering practices on top of existing practices and institutions.

dr. Sasa Marenjak Ph.D., M.Sc., B.Sc. Scientific Collaborator, Croatian Institut for Bridge and Structural Engineering, Zagreb, and Senior Lecturer, Faculty of Civil Engineering, University of Osijek, Osijek, Croatia Prof.dr. Vladimir Skendrovic Ph.D., M.Sc., B.Sc. Professor, Faculty of Civil Engineering, University of Osijek, Osijek, Croatia Josip Cengija B.Sc. Research Assistant, Croatian Institut for Bridge and Structural Engineering, Zagreb, Croatia Abstract: The Private Public Partnership (PPP) procurement method requires the private companies involved to take long-term responsibility for public facilities, for not only the initial construction costs, but also for building operation and maintenance costs during its defined life. The PPP procurement method for public buildings requires involvement of private and public clients, and includes finance, design, construction, maintenance and operation of public buildings (e.g. schools, hospitals etc.). The unsatisfactory condition of public buildings in Croatia, due to lack of usable space (e.g. schools etc.), demonstrates that the traditional procurement route for public buildings, among others, might be challenged with a new (PPP) procurement method. In this paper the first public building pilot project is described, and the barriers and difficulties affecting its

Paper 52:

Developing Public Private Partnerships in Denmark –The Role of Construction Firms in Networked Public Services

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Christian Koch Associate Professor, Dep. for Civil Engineering, The Section for planning and management of building processes, Technical University of Denmark, Denmark.

on: the contingency factors, the project specific variables, and the organisation design and implementation. The result shows that the core of the STO organisational structure (from a supply chain perspective) falls under formal/specialised/differentiated through decentralised formats via the owner (demand chain perspective) centralised management systems. This form of organisation eliminates the duplication of activities in project execution/management, while it increases dynamism and efficiency via specialisation.

Martine Buser Research Assistant, Department for Civil Engineering, The Section for planning and management of building processes Technical University of Denmark, Denmark Abstract: The establishment of private public partnerships in Denmark in relation to construction has been a long and reluctant process. A first wave of PPP arrangements started flourishing in Danish municipalities from the late nineties. Although a number of arrangements were established, the development was halted because of a scandal in one municipality in 2002. In the spring of 2004 however the government launched an action plan and PPP arrangements are now emerging. One central issue in the establishment PPP is how to develop a governmental metaframe, which is here viewed as an emergent process of networking, learning and establishing of institutions. Drawing on new public management perspectives, it is argued that the future model of public services is a network of a mixed set of players (private, voluntary and public). Such networks might be strong in combining forces and strength from these various sectors in producing present public services. The paper analyse the emergent network and the metaframe. Examples of Danish PPP are given highlighting the role of the construction firms. The experiences illustrate the importance of recognizing public private partnerships as emergent political arenas.

Paper 54:

Management Contractor – At What Stage Should It Be Appointed? S.L. Tang and C.S. Chan Civil and Structural Engineering Department, The Hong Kong Polytechnic University Hunghom, Kowloon, Hong Kong, China Abstract: In selecting a management contractor, tenders are invited and they are usually submitted based on the "base cost" of a project. This base cost is roughly estimated by the designer (or consulting firm) before tendering, so tenderers can submit tenders by referencing the base cost. However, by doing so, the management contractor, who usually helps giving design input/advice to the designer, may sometimes be too late to become a part of the project team. Hence, a solution must be found which will enable the owner to select a management contractor as early as possible in the project life. A total of ten interviews were conducted to solicit the possible solutions from ten senior construction professionals in Hong Kong. The result shows that the two stage selective tendering is the most suitable method to appoint a management contractor in situations with unknown base cost. In addition, the interviewees in general agreed that a management contractor should be involved early in the design stage, but most of them felt that it is unnecessary to appoint a management contractor prior to the appointment of a designer.

Paper 53:

Validating the Specialist Task Organization (STO) Route through the Organization Theories and Empirical Studies Adekunle Sabitu Oyegoke Senior Researcher, Helsinki University of Technology, Construction Economics and Management, Finland

Paper 55:

Abstract: This paper examines the validity of the STO delivery approach based on theoretical development and empirical studies. The organisational theory is assessed from structural, functional, conflict management and organisation contingency perspectives in relation to project organisation. The empirical studies measured different project delivery performance factors in comparative terms along the variables of time, cost, quality, contracting methods, among others. The analysis shows that there are different forms of organisations in relation to procurement routes: formal, informal, centralised, decentralised, specialised, differentiated, etc. The structure and performance of an organisation depends

A Research Framework for Comparing the Partnering Practices in Australia and Hong Kong APC Chan, DWM Chan, LCN Fan, PTI Lam, JFY Yeung Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China AC Sidwell Faculty of Built Environment and Engineering, Queensland University of Technology, Brisbane, Australia

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Abstract: The construction industry is faced with many problems such as little co-operation, limited trust, and ineffective communication often resulting in an adversarial relationship among all project stakeholders. This type of adversarial relationship can give rise to construction delays, difficulty in resolving claims, cost overruns, litigation, and a win-lose climate. Over the past decade, partnering has been acknowledged in both Australia and Hong Kong as an innovative and non-adversarial approach to the procurement of construction services in the industry. This paper provides an initial report of a Research Grants Council (RGC) funded research project in Hong Kong, which aims to compare and contrast the partnering practices in Australia and Hong Kong, and to study the cultural impact on partnering performance. The background, the research approach, and the likely impact of the study will be discussed in this paper.

Paper 57:

New Partnering Models and their Success Factors in the Swiss Construction Market Gerhard Girmscheid Professor, Institute for Construction Engineering and Management, Swiss Federal Institute of Technology Zurich, Switzerland Abstract: Given the conventional project delivery forms currently in use, and the ensuing fragmented interests of the individuals involved in the projects, cost optimizations are primarily driven by price competition. This produces a high degree of potential conflict and an attitude of confrontation among the various individuals involved in the project. This paper focuses on identifying a solution to achieve cost optimizations in the future through the synergies of a partnership or cooperation agreement by using the synergy potential to focus increasingly on generating innovations and continuous improvement processes. Two approaches to differentiation that are based on each other are examined for an in-depth verification of this working hypothesis. The first differentiation approach examines whether there are success factors in projects that substantially support and promote the partnering approach to project delivery. The second approach to differentiation is based on this and develops the main features of a possible total service contracting portfolio that is both life cycle-oriented and specifically promotes the partnering approach to project delivery.

Paper 56:

Relational Contracting Culture and Teambuilding prospects and perspectives in Singapore M. Motiar Rahman Post Doctoral Fellow, The University of Hong Kong, Pokfulam, Hong Kong Mohan M. Kumaraswamy Associate Professor, The University of Hong Kong, Pokfulam, Hong Kong Abstract: Targeting integration in construction, the study reported here compares the suitability of various factors and strategies, in order to provide suitable contractual and non-contractual incentives for building a Relational Contracting (RC) culture and effective teamwork. Results from statistical analyses of 96 questionnaire responses from Singapore contractors, consultants and clients are presented. Despite differences of perceptions among different groups of respondents on the relative priorities of various individual items, it was observed that trust should be at the core of RC. Also, some factors appear to be more important depending on the project, client, and other contracting parties. However, there are some factors that are substantially common. The results suggest the need for an interrelated and consolidated approach, both for propagating RC and building integrated project teams for RC. Like many other countries, the results indicate the readiness of Singaporean construction industry stakeholders to incorporate RC and teambuilding techniques in a move towards improved performance and value for money.

Paper 58:

A study into the use of on-line tendering and e-procurement in the construction procurement process Pauline Corbett Senior Lecturer, School of Engineering and the Built Environment, University of Wolverhampton, UK Rodney Moulder Area Manager, Turner and Townsend Cost Management, Birmingham, UK Abstract: The emergence of web-enabled software has derived as a response to the construction industry’s need to drive towards more efficient processes. The purpose of this study is to investigate and establish whether adopting a method of tendering on-line will improve efficiencies in the tendering processes, resulting in time and cost savings at the tender stage of a project. Case Studies were carried out to identify and compare the processes involved in: 1) tendering on-line, via a specialist service provider and 2) tendering

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traditionally, via post, fax and telephone. A questionnaire survey of quantity surveyors and contractors was also undertaken to provide an insight into their experiences and perceptions regarding the use of on-line tendering.

that mitigate full incorporation of performance indicators are discussed.

Findings suggest that tendering on-line has the potential to reduce the amount of time taken and costs incurred over traditional methods. The amount of cost savings achieved seems to be dependant upon the specific project details, whereas the time savings appear significant regardless of project type.

Arvind Tavare Project Engineer, the Haskell Corp., Jacksonville, FL, USA

Paper 60:

A Survey on Subcontractor Prequalification

Yimin Zhu Assistant Professor, Florida International University, Miami, FL, US

The future use of on-line tendering is difficult to predict. The results suggest that the barriers for the adoption of on-line tendering reflect the barriers faced by the construction industry generally when embracing new technology, which mainly comprise issues relating to people, cost and technology.

Weihua Mao Graduate Student, Florida International University, Miami, FL, US Abstract: Construction work is often executed by many subcontractors specialized in various trades. It has been noted by many studies that the pre-qualification process of selecting subcontractors is an important step to ensure a successful execution of a construction project. The objective of this study is to understand if there is a consensus within the industry regarding the subcontractor pre-qualification process, as well as the information needed for pre-qualifying subs, and to understand what factors may contribute to different practices in the industry if the consensus cannot be reached. The authors first collected pre-qualification statements from various companies to design a questionnaire. The aim is to solicit opinions according to variables such as company type, annual volume and project type. Then, the authors solicited input from construction companies by requesting their participation in the survey. Finally, the authors performed a preliminary data analysis to obtain some initial results. Based on the preliminary analysis, it seems to suggest that construction companies have no or little difference to many of the factors related to subcontractor prequalification regardless their sizes and types of project they serve. However, further studies are required to make conclusions.

Paper 59:

A Survey of the Use of KPI to Augment Current Evaluation Criteria of Projects Tik Sang Lueng Department of Civil and Building Engineering, Loughborough University, UK Francis Tekyi Edum-Fotwe Department of Civil and Building Engineering, Loughborough University, UK Abstract: The emergence of performance indicators in the 1990s as tools for internal monitoring of construction projects promised a step change in the way projects were monitored and evaluated. There is sufficient evidence to support the growing use of such indicators, and in particular, standardised key performance indicators (KPI). KPIs are applied for evaluating projects, and to provide objective measures for assessing potential future performance of project stakeholders. The incorporation of KPIs into existing active progress monitoring for construction projects has been rather slow. While there are several anecdotal evidences of successful use of KPI to actively manage projects, these are often the exception and not the rule. In this paper, the authors present an investigation into the use of performance indicators in Hong Kong construction industry to shed some light on the constraints that surround the apparent slow adoption of such indicators. The investigation is preceded by a review of current performance indicator systems that have evolved in recent times. The study shows that the use of performance indicators is a new concept in Hong Kong construction industry. It also shows that current performance indicators typically provide parallel evaluation for existing factors of time, cost, quality, and client satisfaction. Other constraints

2.3

Project Management Issues

Paper 61:

Improving Organizational Performance of Construction Management Processes Alfredo Serpell Department of Construction Engineering and Management, Pontificia Universidad Católica de Chile Jaime Herdoiza ICAPITAL S.A., Ecuador Abstract: Improving management processes in a

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construction company requires an intervention to the performance-processes–organizations-systems chains that currently exist in an organization. This intervention should be planned and carried out in a systematic way to assure its success when facing the culture and characteristics of the people that are to be affected by the changes that will be introduced. This paper describes an improvement framework utilized and reports the main findings obtained from its application to a construction company. It also discusses the necessary conditions for a management process improvement project and the need for further research in this area. A preliminary conclusion shows that the improvement framework, although systematic in its application, should be flexible and dynamic at the same time to adequately address the uncertainty of groups and individual behaviours.

Paper 63:

A Web-based Information System for Project Monitoring Serafim P. Sakellaropoulos Doctoral Candidate, Department of Civil Engineering University of Patras, Patras, Greece Athanasios P. Chassiakos Assistant Professor, Department of Civil Engineering University of Patras, Patras, Greece Abstract: Project monitoring is an important element of efficient construction management. However, monitoring is generally hindered by the requirement for continuous and detailed information collection and dissemination among the construction sites, often spatially dispersed, and the company headquarters. This paper presents a web-based information management system that aims to overcome current deficiencies in information sharing throughout the monitoring process of construction projects. The system consists mainly of a relational database and a dynamic data-driven web site. The database contains several types of information necessary for project monitoring concerning the construction process (e.g., activity progress, resource usage, material arrival) as well as company characteristics (e.g., manpower, equipment, construction sites). Project participants access the database through the internet and can perform certain transactions such as inserting, searching, viewing, printing, updating, or deleting information by simply using a web browser. A pilot implementation has shown that the system can improve information management as it provides concise information, quick/remote access, prompt updating capabilities, and information reliability. As a result, time and cost savings, as well as higher construction quality can be expected.

Paper 62:

Learning from Failures in Operations Christian Koch Associate Professor, Dep. for Civil Engineering, The Section for planning and management of building processes, Technical University of Denmark, Denmark. Abstract: This paper discusses failures and quality in operations in design and production of buildings. The importance of human action, interpretations and interactions in tackling complexity, fragmentation and disturbances in the building industry is underlined. Building processes encompass requisite parallelism and fragmentation due to their predominantly quantitative complexity. It is suggested that a number of critical junctions occur in these processes and that obtaining quality and avoiding failures quite often requires a series of competent and situational operation management actions. An empirical study of failures and their causes was carried out in the spring of 2004. The observation period was three month covering the assembly phase. In this period we observed 160 failures equal to a calculated cost of 80.800 euro and 8% of the production costs. However only 7-8 % end up as impact on the final product. The analysis showed that, among others, design review, project review, commencing and finalizing operations turned out to be critical junctions in the control of failures.

Paper 64:

Sustainability and performance of projects Odysseus Manoliadis Associate Professor & Chair , Department of Geotecnology and Environmental Engineering Technological Educational Institute of Western Macedonia, Kozani, Greece John-Paris Pantouvakis Assistant Professor, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens, Athens, Greece

Practical implications and improvements are discussed. The focus on critical junctions, points to supply chain management, lean construction and operational innovation in the site organisation as possible elements. Moreover the importance of flexible daily coordination is underlined.

Abstract: The construction sector is of such a vital importance to our societies that most other industrial sectors fade in comparison. The last decade there is an

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expresssed trend towards developing sustainable construction practices. Performance based standards and performance tests are tools in this context. Standardisation is often one of the better ways of entering research results onto the market. The paper gives an overview of the current activities on Sustainable Construction and Performance-Based Standards and accounts for present and planned standardisation. Implementation of the above is summarized in Europe for the last three years. Conclusively performance analysis is considered crucial R&D area for the future implementation.

Abstract: There is a very eye-catching project, namely the Langham Place, being completed recently in the densely built-up area of Hong Kong. The project was originally an urban renewal project under the former Land Development Council, in which a series of pre-war buildings in poorly maintained conditions were resumed, demolished and redeveloped. The site occupied an area of about 12,000 sq m, with a servicing 1 way 3-lane roadway cutting in between. The final decision was to redevelop the site into a commercial complex which includes a 58-storey office tower, a 16-level shopping mall constructed in structural steel and a 42-storey 5-star hotel building. Other provisions included a 5-level basement used as retail and car-parking purposes, Site condition was extremely unfavorable both for the designers, engineers and the builder particularly when the congested environment of the site was taken into account. This paper tries to highlight the engineering and construction features of the project.

Paper 65:

Comparing PMBOK® to the Greek Construction Production Process John-Paris Pantouvakis Assistant Professor, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens, Athens, Greece

Paper 67:

Exploring Delays of Korea Express Railroad Project using Macro – Microscopic Approach

Evgenia Voulgari Graduate Student, National Technical University of Athens, Athens, Greece.

Sung Min Yun Master Student, Department of Civil Engineering, Yonsei University, Seoul, Korea

Abstract: This paper sets out to examine the similarities and differences between the PMI “Guide to the Book of Knowledge” (usually referred to as the PMBOK® Guide) and the Greek construction production process (Gcps). The research is confined in scope to include the most essential and readily applicable knowledge areas i.e. those of time and cost management. The comparison between different methodologies is difficult because of the varying application domains, philosophies, procedures and notations. This is corraborated by the scarce relevant literature in which various methodologies have been used. Following a literature review, a systematic effort was undertaken to classify the Gcps according to the PMBOK’s® knowledge areas. The major conclusions that can be drawn from this work are that the differences between the two systems in the areas compared are remarkably minimal, nonetheless the experience accumulated indicates that further research in the subject is needed.

Sang Hyuk Park Ph D. Student, Department of Civil Engineering, Yonsei University, Seoul, Korea Seung Heon Han Associate Professor, Department of Civil Engineering, Yonsei University, Seoul, Korea Abstract: In April 2004, Korea has become the 5th country to own and operate the high speed railroad. However, there were many difficulties until Koreans enjoy it. The high speed railroad requires elevated quality standards differently from traditional railways. In addition to the technical difficulties, the construction project itself was an unpleasant case with huge delays and cost overruns mainly due to the lack of experience, poor project planning, and environmental concerns. This paper analyzes the reasons for delays on this mega-project. The route of the railway is divided into three sections which have different characteristics. Furthermore, it is very complicated and linear project, whose total length is around 412 km. Subsequently, the analysis is performed in both macro and micro level. First, macroscopic analysis such as S-curve comparison responsibilities of participants on the causes of delay is performed to find any critical sections in the railway route that induce the significant delay in opening day. Then, microscopic analysis is followed to quantify the causes and effects of delays

Paper 66:

Engineering and Construction Features of an Extremely Complicated Redevelopment Project in the Densely Built-up area of Hong Kong Raymond W M Wong Lecturer, Div. of Building Science & Technology, City University of Hong Kong, Hong Kong.

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focused on these critical sections in more detailed way. Finally, this paper provides lessons learned from this project to avoid the decisive delays in performing the similar large-scaled projects.

have started monitoring practices to save their national asset and have made management of such infrastructure mandatory through legislation. It is essential to Pakistan’s national economic prosperity that infrastructure is constantly developed at rates comparable with other developed economies, as well as a policy is devised for efficient and effective infrastructure management in the country to preserve country’s national asset. This paper examines the need of development of a federal policy for the development and management of physical infrastructure in Pakistan and also provides a framework for the policy.

Paper 68:

Effect of National Culture on Construction Project Management Dr Peter Rutland Acting Executive Director, Faculty The Open Polytechnic of New Zealand Wellington, New Zealand

Paper 70:

Factors for Implementation of Affordable Housing in Saudi Arabia

Abstract: The seminal work of Hofstede on national cultures (Hofstede 1994) is the starting point for the work described in this paper, and it has been translated and transformed into an approach to consider the effect of national cultures on construction projects. The paper describes the results of a study by the author into the impact of Cultural Factors (CFs) on conflicts during 4 phases of a project, namely Initiating, Planning, Executing, and Controlling.

Sadi Assaf Professor, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia Muhammed Mubashir Ali Research Assistant, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia

The impact of national culture components on the cost of a project are also considered, and indicators are given as to which factors, if present, might indicate a possible overspend or underspend on a project.

Abstract: The study on Affordable Housing is unique because the definition and measurement of ‘Affordability’ is very subjective according to geographic, demographic, cultural and economic differences. Since Saudi Arabia has its own socio-economic peculiarities, it would be imperative to look at the public housing scenario from the consumers’ affordability point of view. This research will ascertain the concept and the state of Affordable Housing in different developed and developing countries where affordable housing has been successfully implemented. Based on this research some factors necessary for successful implementation of affordable housing in Saudi Arabia are identified.

Paper 69:

Policy Framework for Management of Physical Infrastructure In Pakistan Sarosh Hashmat Lodi Professor & Chair, Department of Civil Engineering, NED University of Eng & Tech, Karachi, Pakistan Khalid Iqbal Member, Directing Staff, Pakistan Administrative Staff College, Lahore, Pakistan

Paper 71: Rizwan Ul Haque Farooqui Assistant Professor, Department of Civil Engineering, NED University of Eng & Tech, Karachi, Pakistan

The New Scottish Parliament Building – A Critical Examination of the Lessons to Be Learned

Sahibzada Farooq Ahmed Rafeeqi Professor & Dean, Faculty of Civil Eng & Arch, NED University of Eng & Tech, Karachi, Pakistan

Keith Potts Senior Lecturer, School of Engineering & the Built Environment, University of Wolverhampton, UK

Abstract: Physical infrastructure is a measure for development of a country. Huge amount of tax payers’ money and foreign borrowings are invested every year in development of new infrastructure facilities to improve the quality of life. In the developed part of the world an equal importance is now been given to not only sustainable development but also to the management of such public infrastructure. Most of the countries, including a number of developing countries,

Abstract: The design and construction of the new Scottish Parliament building, which was initiated in 1997, has been an immense challenge aiming to create a landmark building that would identify that particular moment in Scotland’s history. It was finally opened for business in September 2004 with a reported final cost of £431 million (Euro 647million.) The aim of this research is to critically analyse the

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Scott W. Kramer, Ph.D. Associate Professor, Department of Building Science Auburn University, Auburn, Alabama, USA

project management of the Scottish Parliament building using the 22 hypotheses identified in Morris & Hough’s book The Anatomy of Major Projects as a template. The hypotheses will be tested using the extensive published material including The Spencely Report, two major reports from the Auditor General and the Lord Fraser’s judicial review The Holyrood Inquiry, in order that lessons can be learned and best practice identified and disseminated.

Hiliary H. Henderson Assistant Project Manager, Doster Construction Birmingham, Alabama, USA

Francis Tekyi Edum-Fotwe Department of Civil and Building Engineering, Loughborough University, UK

Abstract: Because of the many different issues that can affect the construction of an international project, planning is very important. In order to properly plan for a construction project in a foreign location, pertinent issues should be identified. Information must be gathered and researched in order to establish these important issues. The data for this paper was gathered through personal interviews and discussions with construction companies and organizations in Western Europe and the United States. This paper presents issues that relate to pre-project planning of international construction and conclusions are made regarding the main challenges of international construction and what can be done to overcome them through proper pre-project planning.

Antony Thorpe Department of Civil and Building Engineering, Loughborough University, UK

The Construction in Lithuania and Their Transformation in 21st Century

The research has established that the Scottish Parliament building project could not be considered a success when tested against the Morris and Hough 22 hypotheses; however it is a high-quality iconic building that may well stand the test of time. Paper 72:

How Would the Management of Design Projects Change into the Future?

Paper 74:

Arvydas Juodis Professor, Department of Civil Engineering Technologies, Kaunas University of Technology, Kaunas, Lithuania

Abstract: The design phase of an engineering and construction project is often described as the knowledge phase of the project delivery. This is because it relies heavily on the knowledge input of various design and engineering specialists and the output from that phase is typically information. Collaboration of these specialists making a team often presents considerable challenges. Where members making up the team are geographically remote from each other, this often results in a heightening of the potential challenges associated with such teamwork. The possibilities of remote working through virtual environments made available by IT and other technological solutions equally give rise to new ways of interaction for project teams. The authors outline how these emerging developments will help to shape the current challenges of delivering design projects into the future. A framework of the possible transition to a future state of design-work environment, which captures the elements of people, organisation, process and information, is presented and discussed. The authors focus on the scenarios of the possible future state to provide lessons for the AEC sector both at industry and academic levels.

Nerijus Varnas Junior Research Assistant, Department of Civil Engineering Technologies, Kaunas University of Technology, Kaunas, Lithuania Abstract: Lithuania as a member of European Union shares the same economical space with countries, which have longer experience of market economy. In that situation it is very important to know the European economical system and the peculiarities of construction market. Internationalization processes in construction influence the business of Lithuanian contractors. The beginning of 21st century could be named as an intellectualization epoch of construction business, engineering and management solutions. The success of Lithuanian contractors will depend on international construction experience, competitive abilities and adaptation in changeable construction market.

Paper 73:

Global Project Management: Pre-project Planning for International Construction Projects

Paper 75:

The Facility Manager Information Worker of the Future

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Patrick Okamura CFM, CSS, CIAQM, LEEDAP General Dynamics C4 Systems, Facilities Operations, Scottsdale, AZ, USA

Engineering, Democritus University of Thrace B. Lekou Graduate Student, Department of Industrial Management & Technology, University of Piraeus

Kenneth Sullivan, Ph.D. Assistant Professor, Arizona State University, Tempe, AZ, USA

Abstract: The project duration compression is often a necessity that project managers have to deal with. The most common method is to compress the duration of tasks that are on the critical path, according to the Critical Path Method (CPM), starting from the one with the minimum compression cost per time. The characterization of a task as critical / non critical based on CPM lacks flexibility as it depends only on the amount of slack time of the specific task. In this way activities with non zero slack time but with characteristics that may be considered critical in the general sense of the term, as duration, cost and risks related to the task, are excluded of the compression process. The aim of the present paper is to generate a system based on multi-criteria analysis and fuzzy logic, that calculates the criticality degree of project activities and use this value as measurement for the choice of the most proper activity to be compressed.

Dean Kashiwagi, Ph.D., P.E. Associate Professor, Arizona State University, Tempe, AZ, USA Marie Kashiwagi Graduate Student, Performance Based Studies Research Group, Arizona State University Tempe, AZ, USA Syed M Ahmed, Ph.D. Assistant Professor, Florida International University, Miami, FL, USA Abstract: One of the difficulties in the field of facility management (FMgmt) is the identification of value. FMgmt has been a longtime technical profession, staffed by personnel with engineering, construction, or design training and education. The hypothesis of this paper is to show that, although technical expertise is currently required to manage facilities, it is becoming more important to know how to interface/communicate the value of FMgmt to the rest of a company in non-technical information (value, performance information, and cost.) This paper proposes that unless FM’s (Facility Manager) can master the interface, they will not be successful or sustainable, and either be outsourced or eliminated. It proposes that FM’s must realize that their most critical function is not managing the facility (which can be outsourced) but demonstrating/identifying efficiency (better operations for a lower cost) to the facility owner. This requires a FM to become more of a non-technical information worker who does more with less. The emphasis must move from technical knowledge to efficiency, or performance, based on concepts such as outsourcing to performing contractors.

2.4

Paper 77:

A Multi Objective Linear Programming Model for Scheduling of Linear Repetitive Projects Pandelis G. Ipsilandis Professor, Department of Project Management, Technological Educational Institute, Larissa, Greece Abstract: The Critical Path Method (CPM) and the Repetitive Scheduling Method (RSM) are the most often used tools for the planning, scheduling and control Linear Repetitive Projects (LRPs). CPM focuses mostly on project’s duration and critical activities, while RSM focuses on resource continuity. In this paper we present a linear programming approach to address the multi objective nature of decisions construction managers face in scheduling LRPs. The Multi Objective Linear Programming model (MOLP-LRP) is a parametric model that can optimize a schedule in terms of duration, work-breaks, unit completion time and respective costs, while at the same time the LP range analysis can provide useful information regarding cost tradeoffs between delay, work-break and unit delivery costs. Results are demonstrated with the use of a standard LRP literature example.

Project Planning and Control

Paper 76:

A Fuzzy Logic Approach to Criticality in Scheduling D.M. Emiris Lecturer, Department of Industrial Management & Technology, University of Piraeus

Paper 78:

D.E. Koulouriotis Lecturer, Department of Production Management

Piotr Jaskowski Doctor eng., Institute of Building and Architecture

Multicriteria Construction Project Scheduling Method Using Evolutionary Algorithm

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Lublin University of Technology, Lublin, Poland

account in project planning, scheduling and contractors selection. The multicriteria optimization of schedules is a complex question being among NP-hard problems. There is a demand for methods of proved reliability that would facilitate solving practical cases within relatively short time and allow for numerous constraints typical for construction. The paper presents results of calculations carried out by means of a computer system developed on the basis of a multicriteria project scheduling method using evolutionary algorithms proposed by the authors. The results of verification tests confirmed the correctness of the assumptions and methodology. The method developed by the authors has been applied to solve a case of bicriteria (duration and cost minimization) scheduling optimization and contractor selection.

Anna Sobotka Associate Professor, Institute of Building and Architecture, Lublin University of Technology, Lublin, Poland Abstract: Construction projects are not of repeatable character so their completion scheduling process should consider already existing conditions on its every stage (e.g. application of possible technologically – organisational variants to process completion; potential contractor availability) and constraints (resources and contractors availability limitations, often variable in time). As a result optimal workers and resources schedule should be established in terms of accepted assessment criteria. Most often it is aimed at minimisation of duration and cost project completion influencing its efficiency. The contractor selection process should be realised simultaneously to project schedule and due to that fact the authors describe it as an optimal multicriteria scheduling problem. Bringing down this decision to one criteria analysis is the result of major simplifications and often leads to unsatisfactory results for a decision maker. Due to limitations of possibility precise methods application to solve complex practical issues and heuristic method imperfections, an evolutionary algorithm (using stochastic processes) has been adopted to solve multiple-objective combinatorial optimisation scheduling problems and heuristic algorithm of constrained and variable in time resources and contractors number units allocation. Proposed solutions are generated from achievement scalarizing function based on Tchebycheff utility function.

Paper 80:

Schedule Delay Analysis Maria Petrov Vice President & Southwest Regional Manager, The Nielsen-Wurster Group, Inc., San Diego, CA USA Abstract: As engineered and constructed projects worldwide become more technically and contractually complex, the challenges and risks associated with completing a project “on schedule” and within the contractually specified time frame are enhanced. These time and schedule related challenges are further exacerbated by the current international trend of streamlined project delivery mechanisms, increased multi-firm project execution, alternative contracting arrangements, and the growing utilization of liquidated damage contractual provisions. Under these circumstances, the engineering and construction industry has experienced a dramatic increase in delay-related claims and disputes between the various project constituents. As a result owners, engineers, contractors and suppliers are finding themselves in the position of having to perform a schedule delay analysis in order to justify the entitlement to an extension of time and additional costs, or conversely, to defend against such allegations. This paper offers insight and discussion relative to the necessary and fundamental steps required to perform an accurate and defendable schedule delay analysis, one that is consistent with standard industry practice. In addition, some of the major schedule delay analysis methodologies currently being utilized in the industry will be explored in order to develop an overall understanding of their respective strengths and weaknesses. Specific examples are detailed to offer insight to contractors, engineers, construction managers and owners involved with international engineered and constructed projects in order to allow for an understanding of how to properly perform an accurate and supportable schedule delay analysis.

Paper 79:

Multicriteria Construction Project Scheduling Method– Practical Application Piotr Jaskowski Doctor eng., Institute of Building and Architecture Lublin University of Technology, Lublin, Poland Anna Sobotka Associate Professor, Institute of Building and Architecture, Lublin University of Technology, Lublin, Poland Abstract: The owners demand that construction projects are to be accomplished in time and to budget. For a contractor, any excess of time and is hardly possible, and if happens, it results in conventional penalties. Regardless of construction project completion system, duration and cost are key factors determining project’s economic efficiency and fulfillment of the owner’s needs and requirements. Beside quality, they are basic criteria taken into

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has its own advantages and disadvantages, area of application and data requirements. In this paper the requirements of the most common construction scheduling methods are analyzed in terms of data and dependencies in order to design a scheduling database, capable of holding all necessary information. It is argued that the maintenance of this scheduling database is practically feasible, allowing the study of different parts of a project (sub-projects, work packages etc.) using the most suitable method and, thus, in the most effective way.

Paper 81:

Implementation of Methods in Architecure and Civil Engineering Elmar Erdell PhD Student, Institute of Product Development, Technical University of Munich, Garching, Germany Prof. Dr.-Ing. Udo Lindemann Institute of Product Development, Technical University of Munich, Garching, Germany Abstract: Whilst many methods for product development exist and are applied successfully in different industrial sectors, e.g. in mechanical engineering, these methods are widely unused in civil engineering and construction. The application of several methods in the planning of buildings and building parts is generally possible and reasonable, e. g. in terms of quality management and design for sustainability. Problems occur in implementing these methods in the planning process, which is often, especially in small and medium sized projects, unorganised and characterised by “information cuts” between planning, realisation and utilisation. Due to the predomination of small architecture firms and building companies, where modern forms of design (e.g. teamwork) are rarely exercised and research concentrates on solving immediate problems rather than creating general solutions for multiple projects, the implementation of methods turns out to be a difficult change project. To address the above mentioned problems, a strategy for implementation is presented. Process optimisation and the integration of methods into the design process are crucial pre-requisites for the use of methods.

2.5

Construction Education and Training

Paper 83:

Leonardo da Vinci Programmes - Tools for Improvement of Construction Managers Mobility across European Union Andrew Minasowicz PhD., CEng., FCIOB, Vice – Director for Scientific Affairs, Institute of Construction Engineering and Management (ICEM), Faculty of Civil Engineering, Warsaw University of Technology, Warsaw, Poland Paul O. Nowak PhD., CEng., FCIOB, Vice – President, Polish British Construction Partnership Ltd., Warsaw, Poland Abstract: The authors discussed issues connected with accreditation of Continuous Professional Courses (CPD), certification of managers in construction and mutual recognition of qualifications of construction managers in European Union. The Institute (ICEM) was the Promoter of several LdV projects: finished in 2002, the LdV Didactic project titled: “Development of New Type of Studies and Courses in the Field of Management in Construction for Engineers According to Requirements of European Union”. Two next projects were finished in 2004: “Model of Professional Qualification Structure and New Methods of Promotion, Certification and Mutual Recognition of Managerial Skills in Construction Industry According to the Requirements of EU” - connected with creation of tools for transparency of the construction managers qualification in Europe and “Improvement of the Linguistic Skills of Polish and Portuguese Construction Managers and Engineers - Recognition of Needs and Preparation of Courses in "Construction English Language"” - connected with improvement of English language skills among construction industry employers. Nowadays the Institute is the Promoter of the LdV project titled: “Recognition of needs and creation of the professional training in the area of preparation and management of infrastructure construction projects financed by the European Union”. The main goal of all of these projects is to increase

Paper 82:

Data Requirement Analysis of Construction Scheduling Methods John-Paris Pantouvakis Assistant Professor, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens, Athens, Greece Elena Petroulopoulou M.Eng. Student, Faculty of Civil Engineering, National Technical University of Athens, Athens, Greece. Abstract: Several scheduling methods have been proposed to represent, monitor and control the complex and discrete tasks required for the completion of a construction project. These methods vary in complexity from simple to-do lists to bar charts, networking methods (AOA & AON), linear scheduling techniques, probabilistic methods, critical chains etc. Each method

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employment capabilities of Polish, Lithuanian, Spanish and Portuguese engineers and managers at construction market of enlarged European Union.

process engages instructors in a two year cycle; first year instructor apprenticing with second year instructor, with one instructor rolling off and one coming on each year. This provides opportunity for many faculty members to participate without exhausting a few. Over time this should generate broader support within the department and a more collective sense of ownership of the program. In addition it creates excitement among students regarding the value added to their degree from unique learning experiences offered by construction study abroad. This paper describes the course background, structure, rationale, and lessons learned from previous courses.

Paper 84:

The Role of Continuing Professional Development (CPD) in Formal Higher Education Professor Paul Watson PhD, MBA, MSc, MCIOB, FBEng, CertEd, ILTM School of Development & Society,Sheffield Hallam University, UK Abstract: CPD is an important aspect of any professional person's development. It enables the vital issue of being a 'Reflective Practitioner' to be addressed and thus gain an improvement in professional performance. However, many professionals within the Construction Sector engage in CPD but do not have a degree. Their professional development/progress in many cases is linked to having a formal academic qualification.

Paper 86:

The Influence of Construction Management Work Experience on University Students’ Academic Achievement Scott W. Kramer, Ph.D. Associate Professor, Department of Building Science Auburn University, Auburn, Alabama, USA Abstract: This study compared the academic achievement of students who participated in a cooperative education program with the academic achievement of those students who did not participate. The general hypothesis was that students who gained knowledge through co-op work experience would use that knowledge in subsequent coursework and achieve a higher grade point average (GPA) than students who did not participate in the co-op program. Historical data were analyzed on students who graduated from the building science program at Auburn University from 1996 – 2000. The independent variable was STATUS and the dependent variable of academic achievement was measured by the GPA of five sequential project management classes.

This paper describes a Case Study of how a joint venture between a professional body and a UK university resulted in the validation of a BSc (Hons) degree built upon CPD activities and making full use of 'Work-based Learning'. The paper provides a useful model for future developments of CPD within the Construction Sector.

Paper 85:

Higher Education: A Global View of Construction through Study Abroad Scott W. Kramer, Ph.D. Associate Professor, Department of Building Science Auburn University, Auburn, Alabama, USA

Paper 87:

Michael F. Hein, P.E. Professor, Department of Building Science Auburn University, Auburn, Alabama, USA

Proposal of a new paradigm for Construction Management Education and Industrial Engineering Collaboration

John D. Murphy, Ph.D. Professor & Dept. Head, Department of Building Science, Auburn University, Auburn, Alabama, USA

Lincoln H. Forbes, Ph.D., P.E. Adjunct Professor, College of Engineering, Florida International University Miami, Florida, USA

Abstract: The department of Building Science at Auburn University offers students the chance to expand their horizons by participating in a construction-specific study abroad course during summer semesters. Successful study abroad thesis trips have been conducted in summer 2000, 2002, and 2004. Growing interest over past trips prompted faculty to propose a yearly study abroad alternative thesis experience beginning in summer 2005. This yearly

Syed M. Ahmed, Ph.D. Assistant Professor, College of Engineering, Florida International University Miami, Florida, USA Abstract: The Construction Industry lags far behind the manufacturing and service industries with regard to the application of performance improvement and

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optimization techniques. Several research studies have pointed to high levels of waste in the construction industry in the order of 30% because of entrenched attitudes in the management of projects. As the US has an annual dollar volume of over $1.2 Trillion, the potential for savings is indeed great. This paper posits that traditional construction education programs are not equipped to induce change on the level needed to redirect the industry. It proposes the inclusion of Industrial Engineering and Engineering Management courses. It also proposes collaboration between construction professionals and Industrial Engineers to apply a number of techniques in construction that have been used successfully in the manufacturing and service sectors.

University, Zagreb, Croatia Abstract: The paper will analyse the position of local and regional construction companies in common European market. The factors that impact the competitiveness of local and regional construction companies will be discussed. The importance of life long learning as a tool for increasing the competitiveness of construction industries will be explained. The program of the life long learning, and experience in its application at the Faculty of Civil Engineering, Zagreb University will be presented. The possibilities for international co-operation will be discussed. Paper 90:

Leadership Required to Change the Culture of Construction

Paper 88:

An Empirical Study on E-Learning for Construction Education

Paul Murphy Graduate Student, Central Connecticut State University, Hartford, CT, USA

Dr Patrick X.W. Zou Senior Lecturer and Director, Master of Construction Management Program, Faculty of Built Environment, University of New South Wales, UNSW Sydney NSW 2052 Australia

Jacob Kovel, Ph.D. Associate Professor, Central Connecticut State University, Hartford, CT, USA

Abstract: It is commonly accepted that information and communication technology has made much impact in the ways we work and learn. The paper aims to measure the change of the students’ perception on e-learning by comparing the survey results before and after having experienced an e-learning session. This paper presents the results of an empirical study on e-learning in undergraduate construction education where there results were cumulated over a period of three years. The results show that while the majority of students indicated that it is feasible and effective to use e-learning in construction education, they prefer an integration of face-to-face and e-learning methods rather than solely face-to-face or solely e-learning method. From learning outcome perspective, the students considered that there was little difference in the level of mastery obtained by e-learning compared with face-to-face method. It is concluded that e-learning is an effective tools for learning and teaching and should be integrated into today’s learning and teaching

Dean Kashiwagi, Ph.D., P.E. Associate Professor, Arizona State University, Tempe, AZ, USA Kenneth Sullivan, Ph.D. Assistant Professor, Arizona State University, Tempe, AZ, USA Marie Kashiwagi Graduate Student, Performance Based Studies Research Group, Arizona State University, Tempe, AZ, USA Syed M Ahmed, PhD. Assistant Professor, Florida International University, Miami, FL, USA Abstract: Determining how to increase the performance in the construction industry has been a daunting task. Concepts such as lean, continuous improvement, just-in-time, quality control, and supply chain management have been transferred and implemented from the manufacturing sector. New delivery systems have been introduced such as design-build, construction management at risk, indefinite delivery, indefinite quantity, cost plus fixed fee, design-build-operate-maintain, and privately financed and maintained. The profession of construction management has also been introduced. However, there is no documented evidence that performance has increased. The International Council

Paper 89:

Increasing the Competitiveness of Construction Industry through Life Long Learning Dubravka Bjegović Ph.D. Dean, Faculty of Civil Engineering, Zagreb University, Zagreb, Croatia Ivica Završki, Ph.D. Assoc.Prof., Faculty of Civil Engineering, Zagreb

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for Research and Innovation in Building and Construction’s (CIB) latest effort is to now revalue construction, in attempt to identify the value of construction. The authors propose to utilize concepts from a value added transformation in the manufacturing sector, the transition of General Electric under Jack Welch’s leadership, to propose changes which can add value to the construction industry. The authors hypothesize that the construction industry requires the implementation of leadership and performance information concepts in the industry structure.

Derek Walker Professor of Project Management, Graduate School of Business, RMIT University, Victoria, Australia Andrew Finegan Senior Lecturer, School of Information Technology, Charles Darwin University, Darwin, Australia Abstract: The research focus of recent construction industry knowledge management research has primarily been the development of knowledge management strategies for a certain ‘single’ organisation to unleash innovation and creativity by exploiting the resources available within the organisation. The emerging paradigm of supply chain management dictates that unit of competition from organisation vs. organisation will soon change to chain vs. chain. Hence, a collective collaborative effort of all supply chain partners would be required to achieve such innovation and creativity. This research explores the role of knowledge management to serve as such a vehicle in the emerging paradigm through which innovation and creativity can be unleashed by a collaborative effort of all the members of the supply chain. The research is built on the recently completed CRC for Construction Innovation Australia, research project “Delivering improved knowledge management and ICT diffusion in Australian construction industry” where a ‘Knowledge Advantage’ framework was developed for a certain organisation to unleash innovation and creativity. This paper explains how this framework can be extended to take into account the supply chain partners and create a culture of knowledge sharing through which a Knowledge Advantage for the whole supply chain can be developed and used to unleash creativity and innovation in the construction projects.

Paper 91:

ICT Usage and Proficiency Level of Architectural, Engineering and Construction (AEC) Industry Educators in Nigeria Olukayode Sunday Oyediran Senior Lecturer and Head, Quantity Surveying Unit Department of Building, University of Lagos, Lagos Nigeria Abstract: AEC Industry educators occupy are major players in the adoption of ICT in the construction industry. The usage of and proficiency in industry specific package by construction educators is bound to exert multiplier effect on teaching and research. This study attempts to examine the access, to and use of ICT facilities, by individuals and institutions, the training and proficiency levels of the educators. The study employed a survey research design, drawing a stratified random sample from Nigerian educational institutions, offering construction education. It was discovered that majority of the educators did not receive formal ICT training as institutional support appears to be weak. Their level of proficiency was very low for industry-core-IT packages, whereas there was a high level of proficiency in computer based communication media. There is need therefore for high-level institutional support and programme of training the educators (TTE) towards the capacity development of the AEC industry professionals to take full advantage of ICT and consequently improve the efficiency of the industry.

3.

Paper 93:

Innovative application of Information Technology in China Construction Engineering Management: status quo, question and some advice Chunjing Shang Engineer, School of Economics and Management, Beijing Jiao tong University, China Changbin Liu Professor & Chair, Management Engineering Department, Beijing Institute of Civil Engineering & Architecture, China

Information Technology and Information Systems in Construction

Paper 92:

Unleashing Innovation and Creativity through Managing Knowledge in Supply Chains: Creating the Learning Chains

Abstract: The Layout Compendium of the Information Technology in Construction Industry from 2003 to 2008 was announced by the ministry of construction in Nov., 2003. This indicates the government drives the whole construction industry to apply information technology designedly. This paper describes the application status quo of information technology in

Tayyab Maqsood Doctoral Candidate, CRC for Construction Innovation, School of Business Information Technology, RMIT University, Victoria, Australia

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china construction engineering management, and compares it with the advanced information technology in construction engineering management and analyzes the question and cause in China construction engineering management. Combined with the characteristic of Chinese construction engineering, this paper gives some advice, above all, one of the most important is to utilize government influence to drive the whole industry improvements, especially management systems and e-Government services should be improved as soon as possible. Then is to set up information gathering, share and exchange mechanism and the IT standard in construction industry, last is to apply advanced management technologies, such as Web-based central information management system and IFCs-based BIM for the whole construction engineering process, and to realize the construction engineering life-cycle management which is a tool for construction sustainable development.

to their own specific internal business environment, and the nature of their projects. Paper 95:

A Software Tool for the Life Cycle Management of Information Technology Projects in Construction: ProjectIT Rodney A. Stewart Lecturer, School of Engineering, Griffith University, Gold Coast, Queensland, Australia Abstract As international competition continues to intensify, significant numbers of construction organisations are investing large amounts of resources into IT as they seek to gain competitive advantage. IT is increasingly being implemented for strategic reasons, so as to enable improved efficiency and to improve control and productivity of internal processes. The failure of realising expected IT-induced benefits has led to a growing number of senior executives to question the value of IT investments. This research study was inspired by the perceived lack of a structured framework for the life cycle management of innovative IT projects in construction. In addition to a structured IT project life cycle framework consisting of three modules representing each phase of the life cycle, namely, IT project selection, strategic IT implementation and IT performance evaluation, industry practitioners require a user-friendly software tool to assist them to undertake this arduous task. This paper details a summary of the previously developed framework and the current progress for the development of the ProjectIT software tool. Once finalised, ProjectIT should assist construction firms to rapidly select IT projects based on monetary and non-monetary benefits and risks, implement these projects in a well-planned strategic manner and evaluate the short- and long-term value generated from them.

Paper 94:

A Self-assessment Tool for Knowledge Management Implementation in the Construction Industry Le Chen Doctoral Candidate, School of Engineering, Griffith University, Gold Coast, Australia Sherif Mohamed Associate Professor, School of Engineering, Griffith University, Gold Coast, Australia Abstract: Knowledge management (KM) provides a structured process to establish the link between knowledge-based assets within an organisation and its desired business objectives. Although KM issues are becoming increasingly important to the construction industry, there is currently no measurement tool for assessing the implementation of KM programmes. This paper reports on the development of such a tool which can be used as both a means of self-assessment and also for benchmarking purposes. Important practices needed for successful KM implementation were identified from the literature and via a self-administered survey targeting large and medium construction organisations in Hong Kong. Survey findings demonstrate the potential of the proposed self-assessment tool to measure the individual’s perception of the relative importance of KM antecedents and practices, also providing early insight of KM implementation by highlighting the negative gaps between what “is” and “should be” happening, thus identifying areas that need re-alignment of KM strategies and tactics. The paper also suggests this tool could be further developed to help organisations to formulate and modify their KM programmes according

Paper 96:

Managing Inter-enterprise Information Exchange in Construction VOs Dr. Abdul Samad (Sami) Kazi Senior Research Scientist, VTT – Technical Research Centre of Finland, Espoo, Finland Abstract: The typical operational modality of a construction project is that of a virtual organisation. Within such contexts, different organisational entities share competencies to deliver a one-of-a-kind product or service. This paper presents a typical VO (virtual organisation) environment in the form of a seven layered ICT architecture that supports the definition and mapping of an organisation’s internal system

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within a shared inter-enterprise context for VOs. An ICT system based on a set of system components is furthermore presented to provide a illustration of the operational environment of a typical VO.

traditional reporting tools and the ability to provide a multidimensional conceptual view of data. This paper presents an approach to monitoring construction cost with OLAP technology. Practical examples are derived from the monitoring and controlling systems that are applied in the construction of the Egnatia Motorway, one of the most significant infrastructure projects currently under construction in Europe, with a total length of 680 km and a total cost of works of 5 € bn.

Paper 97:

Evaluation of an Automatic Monitoring System of Surface Displacements at "Prinotopa" landslide of Egnatia Odos Dr. Konstantinos Lakakis Lecturer, Aristotle University of Thessaloniki, Greece Consultant, Egnatia Odos S.A., Greece

Paper 99:

Abstract: The general tendency in systems for structural and environmental monitoring guides towards ever more automatic and autonomous operation. Technologies and instruments are available to reliably interconnect distributed, disparate components. The measurement, logging, data processing and interpretation activities may be carried out by separate units at different locations in near real-time. Most of the systems which focused on deformation monitoring use as basic technology GPS and Motorized Total Stations. These systems also have been generalized to accommodate a range of other sensors, thus rendering it even more flexible. In this paper I will try to present an integrated evaluation of all tests which have been carried out the last two years about an autonomous, automatic and low costed monitoring system for the landslide movement at Prinotopa site near Metsovo at Northern Greece. Through this critical area Egnatia Odos has to be constructed and operated.

Dale Christenson DPM candidate, RMIT University and Executive Director, Leadership and Learning Centre, B C Public Service Agency, Province Of British Columbia

The Project Management Office a Centre of Knowledge Excellence?

Derek H.T. Walker Professor of Project Management, Graduate School of Business, RMIT University, Melbourne, Australia Abstract: Knowledge is widely regarded as one of an organisation’s key assets. Heightened attention is now being focussed on creating an environment that effectively maximises knowledge transfer. To this end, the centre of excellence and its role within a corporate project office provides a useful example of how this facility contributes to knowledge management for project managers. We explain in this paper how centres of excellence can be viewed as a particular class of knowledge networks that has great potential for making well-informed decisions. Its usefulness is that it helps to focus those involved in project management on developing project management knowledge assets. We hypothesise that this will contribute to the improvement of project management practices and provide both tangible and intangible outcomes for clients and project management practitioners.

Paper 98:

The Application of OLAP Technology in Monitoring Construction Cost Alexander Maravas Head of Planning and Cost Control Unit, Egnatia Odos AE, Thessaloniki, Greece Alexandros Kallantzis Regional Planning Engineer, Egnatia Odos AE, Ioannina, Greece

Paper 100:

Using a Multiobjective Local Search Procedure for Construction Time-Cost Analysis

Sergios Lambropoulos Assistant Professor, National Technical University of Athens, Greece

K. P. Anagnostopoulos Assistant Professor, Democritus University of Thrace, Xanthi, Greece

Abstract: On-line Analytical Processing (OLAP) is a category of software technology that allows users to gain insight into data, through a variety of possible reports and queries. Information is transformed from raw data to portray the real dimensionality of either a project or an enterprise as understood by the user. Key benefits of the use of this technology are: faster query performance, more powerful data analysis than

L. G. Kotsikas Civil Engineer, Ph.D. Candidate, Democritus University of Thrace, Xanthi, Greece Abstract: The time-cost trade-off problem, i.e. selecting appropriate resources to perform the activities of a project so that to balance the project total duration

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Su-Won Yoon Research Assistant, Dept. of Architectural Engineering, Sungkyunkwan University, Suwon, 440-746, Korea

and the project total cost, is one of the most important aspects of construction and business projects planning. The literature for the case where the time-cost relationships are defined at discrete points, known as the discrete time-cost trade-off problem, has been rather sparse. In any case, it seems that new generation multiobjective techniques have not used to solving it. In this paper we propose a model of project scheduling with two conflicting objectives, i.e. minimize the total direct project cost and minimize the project duration, for the discrete time-cost trade-off problem. We apply a recently developed multiobjective evolutionary algorithm, the so-called the Pareto Archived Evolution Strategy (PAES), for approximating the Pareto front of the non-dominated solutions which employs local search and uses a reference archive of previously found solutions in order to identify the approximate dominance ranking of the current and candidate solutions. We also discuss some issues relating to its implementation.

Sangyoon Chin Associate Professor, Dept. of Architectural Engineering, Sungkyunkwan University, Suwon, 440-746, Korea Yoon-Ki Choi Assistant Professor, Dept. of Architectural Engineering, Soongsil University, Seoul, 156-743, Korea Cheolho Choi CEO, Doalltech, #1403 Aju Bldg. 679-5, Yeoksam-Dong, Gangnam, Seoul, 135-978, Korea Abstract: Curtain walls are one of the critical components in high-rise buildings. Since their life-cycle processes involve many participants from various disciplines, successful supply chain management of curtain walls requires effective and efficient coordination and cooperation among the participants. Therefore, the objective of this research is to improve efficiency and effectiveness of the curtain wall life-cycle process by developing a collaborative supply chain management system using RFID (Radio Frequency Identification) to track the information and product flow among participants. In addition, this paper includes discussions on various factors that affect the selection of a specific RFID technology for the given domain.

Paper 101:

Developing a Common “AEC” Extranet for Regional Networking of Professional Practice Edwin H.W. CHAN Associate Professor, Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong SAR China Henry Suen Research Associate, Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong SAR China

Paper 103:

A Method of Retrieving Similar Construction Plans for Conpla-CBR (Construction Planning by CBR)

Abstract: In the light of the increasing need for an effective IT system to foster effective project communication and integration, this paper study the development of an integrated extranet system prototype for the construction professionals (architects, engineers and contractors) in Hong Kong and nearby region. The system (referred as e-AEC) aims at achieving technological and organizational integration. The paper examines how it can be used to support the construction industry, which has been slow to adopt Information Technology. The requirements that form the basis for the construction and development of e-AEC prototype have been identified, which fall into the grouping of information database and interactive services. With the advent of extranet technology, the “AEC” extranet platform has lot of room to improve services to the industries, which are beyond the boundary that traditional media can offer.

Han-Guk Ryu PhD Candidate, Seoul National University, Seoul, Korea Bo-Sik Son PhD., Seoul National University, Seoul, Korea Moonseo Park Assistant Professor, Seoul National University, Seoul, Korea Hyun-Soo Lee Professor, Seoul National University, Seoul, Korea Abstract: Construction project is the dynamic entity to be actively managed in the internal and external consditions. Thus, project planning must be systematic, flexible enough to handle unique activities, disciplined through reviews and controls, and capable of accepting multifunctional inputs (Kerzner, 1998). The schedule related information can be accumulated from the compny’s operating systems such as ERP, PMIS to

Paper 102:

An RFID-Based Supply Chain Management System for Curtain Walls

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CSDM (Construction Schedule Data Mart) through ODS (operational data store). The ODS serves as a point of integration for operational systems. The cumulated information of CSDM can be used through CBR (Case-Based Reasoning). CBR can be regarded both as a cognitively sound modeling approach for explaining human problem solving in domains where experience plays an important role (Strube and Jantzko, 1990). It is especially appealing to those professionals who solve problems by recalling what they did in similar situations that happened in the past. Likewise, many human schedulers create schedules by reusing past similar schedules (Dzeng and Tommelein, 2004). The implementaton of Conpla-CBR (Construction planning by CBR) is subject to matching problem to determine which features are important when selecting construction project plan cases. Thus, the purpose of this paper is to propose a method to retrieve useful and efficient similar project planning cases from the CSDM. This study will be contributed to the planner for effectively and efficiently planning the construction project.

Paper 106:

Supply Chain Management in Construction Procurement System Anna Sobotka Assoc. Prof., Lublin University of Technology, Lublin, Poland Agata Czarnigowska Research Assistant, Lublin University of Technology, Lublin, Poland Abstract: Implementation of the idea of supply chains proved beneficial in many branches of industry and commerce. However, it is impossible to transfer the concepts of supply chain management directly from manufacturing industry to construction. The construction project procurement may be analysed as a supply chain with consideration to variability of its configuration dependent on procurement system. The latter is determined by the particular aim of the project and preferences of its owners and funders. The possibility of organising the project’s participants into supply chains depends on e.g. their willingness, technical preparation and know-how necessary for entering tight cooperation and mutual commitments. This varies according to branch and sector and is conditioned by the state of economy and level of organisational development of potential links of supply chains. The paper focuses on a particular aspect of construction supply chains, i.e. supply logistics, and investigates into logistic processes concerning material flows. The authors researched on the logistics of Polish builders to examine possibilities of applying supply chains ideas to construction, to trace changes in logistic management and establish directions of development.

Paper 105:

Data Exchange Technology And Database In Engineering Drawings Algirdas Sokas Doctor, Department of Engineering Graphics, Vilnius Gediminas Technical University, Vilnius, Lithuania Abstract: Integrated Computer Aided Design (CAD) environment and data exchange capability greatly enlarge designer possibilities. Modern data exchange technology is ActiveX. This technology allows exchanging information with CAD application and other ActiveX enabled applications as database. Algorithms are formed to attach database record information to a graphical object, to read the information from graphical objects, and to collect extended data in the database records. The following are presented: procedure fragments and results dependent on selected record in the database of graphical object parameters; creation of extended data for a new graphical object; and information transfer to another database for created elements’ specifications in the drawing. Presented examples of procedures show that it is possible to control names and numbers of graphical objects in the drawing. Using this technology in the engineering drawings, we can automatically design specifications of drawing elements. The prepared example shows framework drawing with specifications and database with steel information written in Visual Basic Application (VBA) programming language. The general purpose of this paper is to contribute to a debate about possibility of VBA graphics programming in the CAD environment.

Paper 107:

A Survey on E-Government in Chinese Construction Industry Chunjing Shang Engineer, School of Economics and Management, Beijing Jiao Tong University, China Changbin Liu Professor & Chair, Management Engineering Department, Beijing Institute of Civil Engineering & Architecture, China Abstract: Government informatization engineering has been built since 1999 in China. In order to push the use of IT in the construction-related agencies and be consistent with the whole national e-government, “one parts of e-Government system~ the system in the construction industry” began to build in 2003. Two years passed, what is the actual state of e-Government in the construction-related agencies now and what were

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the perceived benefits and questions? And how will e-Government in the construction-related agencies develop in the next years? The latest survey which was carried in Aug., 2004 answered the above questions. The survey results showed that the construction-related agencies had rapid progress in building e-Government system. Based on the survey, this paper compares e-Government in construction-related agencies in big cities with that in SM sized cities and analyses the cause. At last it pointed out that it is very important that construction-related agencies in provinces and districts should keep developing e-Government to impel those in counties to improve and operate e-Government systems in the next process of building and operating e-Government in the construction-related agencies in China. And e-office work should be taken into considered firstly. For the agencies in SM sized cities, the finance mode should be increased.

Gerhard Girmscheid Professor, Institute for Construction Engineering and Management, Swiss Federal Institute of Technology Zurich, Switzerland Abstract: The choice of appropriate construction techniques is a core competency of construction companies and will have a very important impact on efficiency and effectiveness of the work and the costs involved. Due to the short bidding period and work preparation time before work on site has to be commenced, and due to missing systematic decision making tools, the selection of construction techniques is done mainly by experience and subjective calculation of the project even for major complex projects. This does often lead to non-optimal processes during the construction phase. Resulting from this generally accepted practice, construction companies are frequently reluctant to consider new and innovative construction techniques, in particular, or they reject them totally for reasons of lack of experience. Practice has shown that adherence to tried and “trusted“ construction techniques is making it very difficult for new, innovative and better-performing construction techniques to break into the market. Given the far-reaching commercial consequences of selecting the optimal construction technique, the Institute for Construction Engineering and Management at SFIT Zurich has initiated a research project aimed at providing a tool for practical application that allows a process-oriented, risk-based selection of the construction technique with particular focus on the impacts of the same on the overall construction process.

Paper 108:

Supply Chain Management in Monolithic Works Zygmunt Orlowski Institute of Civil Engineering, Bialystok University of Technology, Bialystok, Poland Abstract: In the logistics – production system which is the complex process of concrete works, during the realization of objects in monolithic technology, two subsystems of concrete transport are distinguished. In the mathematical model, according to which the choice of optimal machine set for external transport of concrete mixture is made, the assumption is that the concrete production plant delivers concrete mix using its own means of transport of varied capacities to a few simultaneously realized objects. Conceptual apparatus created for this purpose allows to present the transport system (distant and internal) as one entity and in the logical record of mutual internal relationships between its elements. It also describes its relationships with the external environment. The prepared computer program allows to perform complete analysis of machines and devices during the task realization. Presented algorithm of solving the task also allows to determine the optimal order of loading the concrete truck mixers, i.e. to determine which means of transport start the work and which ones transport concrete mix to the construction site to minimize the transport costs.

Paper 110:

A Strategic Approach to Bridging the Gap between Global Digital Construction and the Low-Tech Third World: An Overview Wilfred Masuwa Matipa Lecturer – Quantity Surveying and Commercial Management, University of Central Lancashire, Faculty of Design and Technology, Department of Built Environment, Preston, Lancashire, United Kingdom

Paper 109:

Nguesso Pandawe Projects Quantity Surveyor, Nashinga Construction Company Limited, Lusaka, Zambia

Bernhard Schaiter Senior Scientist, Institute for Construction Engineering and Management, Swiss Federal Institute of Technology Zurich, Switzerland

Abstract: The rapid advancement in the usage of information and communication technology (ICT) has – inter-alia – led to a more integrated and interconnected business world. A key driver of this phenomenon has been the increasing demand for business information so that firms can outbid

Integrated Process-oriented Selection Method for the most efficient Construction Techniques

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competitors in global-based business maneuvers. Even though construction may lag in terms of uptake of technology, there has been an increase in the proliferation and application of assorted ICT in global construction activities – except the third world nations. As a result, construction business in most countries face severe competitive disadvantage from international firms that are highly mechanised, and use world class standard ICT tools in their business operations. Such is the case for most construction related businesses in the architecture, engineering, construction and facilities management (AEC/FM) industry in Zambia. A recent pilot survey indicated that local firms were out-bid on most projects that international firms were allowed to bid for. There are many factors causing this scenario, of which underutilization of ICT is one. This research highlights the general severity of the digital divide that exists between the low-tech third world and the developed world – with special reference to construction business in Zambia – and the best strategies to use so that the problem could be reduced.

Civil Protection (CP) for the member states of the European Union. This paper presents the ways of communication between CP members in Greece, Italy and United Kingdom (UK). The current information and communication technologies (ICT) used during an emergency are assessed based on interviews with expert representatives of CP organisations for each country. Finally, through the use of soft systems methodology (SSM) the limitations of current approaches are outlined. Paper 112:

Automatic Integration of Construction Images using Digital Imaging and Pattern Recognition Tools Ioannis K. Brilakis Visiting Scholar, Carnegie Mellon University, Pittsburgh, PA, USA Lucio Soibelman Associate Professor, Carnegie Mellon University, Pittsburgh, PA, USA

Paper 111:

Studies of Emergency Management Procedures in Greece, Italy and the United Kingdom

Abstract: In the modern, distributed and dynamic construction environment it is important to exchange information from different sources and in different data formats in order to improve the processes supported by these systems. Previous research has demonstrated that (i) a significant percentage of construction data is stored in semi-structured or unstructured data formats (ii) locating and identifying such data that are needed for the important decision making processes is a very hard and time-consuming task (iii) there is no automated method for associating visual data with their related project objects (iv) construction visual data and specifically images are a significant part of construction documentation with thousands stored in site photographs logs of large scale projects. Therefore, methods for managing such types of data and especially construction images are important for construction information management. In this paper, an automated methodology for the retrieval, classification, and integration of construction images in AEC/FM model based systems will be presented. Specifically, a combination of techniques from the areas of image processing, computer vision, and content-based image retrieval have been deployed to develop a method that can retrieve related construction site image data from components of a project model. This method is able to automatically classify, store, integrate and retrieve image data files in inter-organizational systems so as to allow their usage in project management related tasks like project monitoring and productivity measuring systems, processes visualization across time and inventory monitoring as well as evidence retrieval for litigation and other purposes.

Eleana Asimakopoulou Research Student, Centre for Innovative Construction Engineering (CICE), Department of Civil and Building Engineering, Loughborough University, Leicestershire, LE11 3TU, UK Chimay J Anumba Professor of Construction Engineering & Informatics, Director of Centre for Innovative Construction Engineering (CICE), Department of Civil and Building Engineering, Loughborough University, Leicestershire, LE11 3TU, UK Dino Bouchlaghem Professor of Architectural Engineering, Deputy Director of Centre for Innovative Construction Engineering (CICE), Department of Civil and Building Engineering, Loughborough University, Leicestershire, LE11 3TU, UK Abstract: Natural phenomena are planetary actions, which may cause disastrous results to the human life, property and environment. Nowadays the number of losses caused by natural catastrophes has been increased. As humans are not capable of avoiding nature, they need to prepare and plan in advance their actions in response to these events. On this basis, various emergency management bodies involving authorities on a local, national and international level have been formed to mitigate, prepare, respond to and recover from catastrophes. They act under the label of

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various software packages. This paper describes how contractors may use extended markup language (XML) based forms to easily collect data from the field. This data may seamlessly integrate into existing databases without very little intervention. The paper presents a case study of how one construction company used Microsoft Web-Services combined with XML technologies to deploy enterprise wide project management solutions that are not totally dependent on the internet. A comparison of adopting ‘Off-The-Shelf’ solutions as opposed those developed ‘In-House’ is presented. The author summarizes how late adopters of information technology in construction may spend less money to implement these technologies as compared to companies that were early adopters of web-based project management systems.

Paper 113:

Framework of Construction Management Task Map for Integrated Project Management Systems Boong-yeol Ryoo, Ph.D. Assiatnt Professor, Department of Construction Management, Florida International University, Miami, Florida, USA Ronald A. Baier, P.E. Instructor, Department of Construction Management Florida International University, Miami, Florida, USA Abstract: Due to the existance of various project delivery methods and contract delivery methods utilized in the construction industry, it is difficult to categorize the scope of Construction Management (CM) tasks and related contractual responsibility. E-Business solutions in construction are equipped with the tasks and associated procedures as programming logic. Inconsistency and reusability among these solutions have been a concern since the programming logics have been formulated depending on the purposes of the solutions. The primary objective of this research is develop a framework of construction management tasks including associated inputs, outputs, methods, and tools throughout the construction project life cycle. A System Integration (SI) methodology is adopted to develop the map because of its effectiveness in process modeling. This approach should be beneficial for construction managers as well as system integrators in the construction industry.

Paper 115:

Charting the Future of RTD in Construction IT: the ROADCON Roadmap Dr. Abdul Samad (Sami) Kazi Senior Research Scientist, VTT – Technical Research Centre of Finland, Espoo, Finland Matti Hannus Chief Research Scientist, VTT – Technical Research Centre of Finland, Espoo, Finland Abstract: This paper presents the main findings from the recently concluded ROADCON project that was funded by the European Commission to define a vision and roadmap for future RTD in construction IT. Findings indicate a paradigm shift towards research in the areas of total life cycle management, knowledge re-use, ambient access, model based ICT, flexible interoperability, performance driven processes, virtual teams, etc. A high level roadmap is presented followed by a presentation of a specific sub-roadmap in the priority area of knowledge sharing covering use, take-up, development, research, and exploration of new emerging technologies.

Paper 114:

Interoperability in Construction Software Solutions: Re-Inventing Web Based Project Management Anoop Sattineni Assistant Professor, Department of Building Science, Auburn University, Auburn, Alabama, USA

Paper 116:

Information and Communication Technology: Organisational and Supply Chain Adoption and Diffusion - An Australian Case Study

Abstract: Technologically advanced construction companies are seeing the benefits of real time information by using internet-based project management software. The drawback with existing web-based project management systems is that they are not always compatible and may not be able to exchange information with other databases in a corporation, such as an accounting system. A recently published study from the National Institute of Standards and Technology finds that building owners, operators, and their allies in the United States could save at least $15.8 billion a year through better coordination of electronic data. Data exchanged among these participants is typically retyped several times into

Andrew J. Wilson Research Fellow, Research Development Unit, RMIT University, Melbourne, Australia. Abstract: The complex, competitive nature of the Australian construction industry’s production processes presents problems for the effective adoption and diffusion of emerging Information and Communication Technologies (ICT) by its participant stakeholders.

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This paper reports on research that examined the adoption and diffusion of ICT groupware by six significant Australian construction contractors and a large construction subcontractor. The research utilised a methodological instrument adapted from Galbraith’s ‘star model’ of change and Rogers technology diffusion model to investigate the strategies and processes undertaken to affect ICT adoption and diffusion. The research also investigated the maturity of the organisations’ ICT adoption, relative to the industry group studied, utilising a technology adoption profiling process.

Paper 118:

The DCM model: A Strategy for implementing the Information Technology Techniques at the Construction Phase Zubair Ahmed Memon Ph.D. research student, CTMC, Faculty of Civil Engineering, University Technology Malaysia (UTM), 81310-Skudai, Johor, Malaysia. Muhd Zaimi Abd.Majid Director, CTMC, Faculty of Civil Engineering, University Technology Malaysia (UTM), 81310-Skudai, Johor, Malaysia.

The research revealed that the ICT diffusion activities undertaken by these enterprises reflected various levels of technology adoption maturity. The diffusion processes and outcomes also indicated that effective ICT adoption and diffusion, both from an organisational-specific and supply chain context, occurs though top-down and bottom-up strategic processes within organisations and as collaborative or independent initiatives both upstream and downstream of the supply chain.

Mushairry Mustaffar I.T. Manager, CTMC, Faculty of Civil Engineering, University Technology Malaysia (UTM), 81310-Skudai, Johor, Malaysia. Abstract: In today’s construction industry, information and automation technology must be viewed as potential resources. Computer Integrated Construction (CIC) is an emerging technology and this study attempts to investigate the issue of implementing CIC at construction stage by evaluating and monitoring the progress of construction sites. A persistent problem in construction is to develop the as-built actual physical progress schedule of construction scene. Managing project information during the construction phase is an important task yet difficult task, however, information exchange between the different phases of a project is not ideal and typically paper-based and parties during each phase of life-cycle spend time and effort to manage information manually. Manual monitoring of construction sites is costly and error prone. Consequently, this study addresses Digitalize Construction Monitoring (DCM) automated model for monitoring and evaluating the physical progress of the project. DCM is an ongoing component of the digital scheduling and evaluation of work progress system for construction industry at Construction Technology and Management Centre (CTMC), University Technology Malaysia (UTM) by the cooperation of Ministry of Science, Technology and Innovation (MOSTI), Malaysia. The research reported in this paper focuses on the issue related to digitalizing the project progress monitoring and proposing prototype software, which integrate the AutoCAD drawings and digital images. User can retrieves the project information in form of images and by using photogrammetry techniques every detail of building should be precisely documented to obtain reliable measurement from photographs and simulated with CAD drawings to develop the physical progress report. By introducing the DCM at the construction phase it allows the resident engineer, project manager, construction manager, and site manager to develop the physical progress report of

Paper 117:

Strategy of Project Management Information System for Subcontractor Tai Sik Lee Professor, Hanyang University, Ansan, Kyunggi-Do, Korea Young Hyun Kim Candidate Ph. D., Hanyang University, Ansan, Kyunggi-Do, Korea Ja Kyung Koo Ph. D. Student, Hanyang University, Ansan, Kyunggi-Do, Korea Abstract: The construction industry has continuously tried to improve the productivity of construction projects through Information Technologies (ITs). It is not actually easy for the subcontractors to apply IT to their projects because of their smaller scale of operations and the problem of the cost of equipment, programmer, and operator to introduce IT. So we need a device to overcome the high investment risk. Therefore, subcontractors need to consider a counter-measure to solve the problem of information management. This paper presents IT outsourcing for subcontractors that effectively accommodates the demand of project information management. The purpose is the conceptual design of an Application Service Provider (ASP)-based project management system. This paper offered the conceptual proposal for the mutual communication and information collection between the construction industry subjects through collaboration and the coordination.

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construction and helps in decision making. This system bridge the gap for monitoring and controlling the construction work by implementing the information technology techniques.

Miami, Florida, U.S.A. Abstract: In the architecture-engineering-construction (AEC) industry, large-scale capital projects, mainly transportation, energy, commerce and infrastructure projects, display the common characteristic of an extensive utilization of time, capital investment, skilled and unskilled labor, material, equipment and other resources, through the entire project life-cycle. The extensive scope of the project and the complicated structure of its organization make the cost and schedule control and management aspects of these projects extremely complex and critical. The biggest problem, however, is to facilitate dynamic and ad-hoc collaboration between the various project entities to ensure detailed, accurate, updated, timely information transfer to support the decision-making process in addition to other design, planning and construction activities; as a way to overcome problems in communication created by the increasingly fragmented project organization and work structures and the application-specific or domain-specific nature of heterogeneous information systems supporting their business processes.

Paper 119:

Implementing Data Warehousing in the Construction Industry: Opportunities and Challenges Irtishad Ahmad Professor and Chair, Department of Construction Management, Florida International University, Miami, Florida, USA Salman Azhar Ph.D. Candidate, Department of Civil & Environmental Engineering, Florida International University, Miami, Florida, USA Abstract: Construction organizations deal with large volumes of project data containing valuable information. These data are normally stored in operational and application databases that are designed to support day-to-day business transactions. While making critical decisions, decision makers would like to quickly analyze existing data to discover trends so that predictions and forecasts can be made with reasonable accuracy. Existing construction databases do not offer such functionality. The concept of data warehousing provides a powerful mechanism to solve the problem of access to appropriate information by decision makers. A data warehouse is a dedicated database created by combining data from multiple databases for purposes of analysis. It supports reorganization, integration, and subsequent utilization of data that enable users to access information quickly and accurately. This paper examines the opportunities and challenges in implementing the data warehousing technique in the construction organizations. The paper first briefly reviews the in-place database management systems in the construction industry. Next, the concept of data warehousing is presented with examples related to the construction industry. At the end, the challenges construction organizations may confront while implementing the data warehousing technique are discussed.

In this paper, the author discusses systems integration using the common semantic model and mapping strategies as a means of collaboration for decision support, which, although being popular and well-researched, have certain limitations. The paper then suggests hybrid systems integration using context models as a better alternative strategy for systems integration, with a larger spectrum of applications and lesser limitations.

4. 4.1

Construction Technology Innovative Construction Technology and Techniques

Paper 121:

New Erection Method and Nonlinear Analysis of Arch Shaped Space Structure with Multi-directional Joint Jin - Woo Kim Professor, Department of Civil & Environmental Engineering, Gyeongsang National University, Gyeongnam, 650-160 Korea

Paper 120:

A Hybrid Integration Strategy Using Semantic and Context Models for the AEC Industry

Hae Jun Rhew Director, The Institute of Construction Solution Ltd., Busan, 602-819 Korea

Yimin Zhu, PhD Assistant Professor, Florida International University, Miami, Florida, U.S.A.

Jong - Ju Kim Professor, Kyungnam College of Information & Technology, Busan, 617-701 Korea

Aarti Pandit, B.E. Graduate Student, Florida International University,

Abstract: This paper discusses about the erection of

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arch shaped space structures by cable tensioning. It is a fast and economical method for constructing such an arch shaped space structures by post-tensioning of the cable in the bottom chords. This structure consists of uniform pyramids with multi-directional joint, and the structure is shaped and erected into its final curved arch shaped space structure from the planar layout on the ground. The feasibility of the proposed erection method and the reliability of the established geometric model were confirmed with nonlinear finite element analysis and experimental investigation on a small-scale test model. As a results, the Total Lagrangian(TL) and Update Lagrangian(UL) method can be used in shaping analysis of arch shaped space structure, we can find the most reasonable analytical technique for the prediction of shape formation in practices and we can know the characteristic of the behavior in shaping test for practical design purposes.

Paper 123:

Dealing with Construction Waste: policies and response Emilia.L.C. van Egmond – de Wilde de Ligny PhD, MSc Faculty of Technology Management, Eindhoven University of Technology, Eindhoven, the Netherlands Anja Kuijsters M.Sc. BSc. Faculty of Technology Management, Eindhoven University of Technology, the Netherlands Alfredo Serpell Department of Construction Engineering and Management, Pontificia Universidad Catolica de Chile, Santiago, Chile. Abstract: There is an increasing awareness and interest in the need for sustainable construction in many countries. Compared to the high income countries, developing countries might be able to establish socio-economic growth with lower levels of pollution, because of today’s global concern and research knowledge about environmental quality and the availability of cleaner technologies. Research carried out in various countries with different development level by scholars at the Eindhoven University of Technology aims at getting a better understanding of response policies and actions as well as mechanisms at work in dealing with construction waste. In Chile -which is an emerging country- the attention for the environment grew the last 10 years, although environmentally sustainable building practices are still in a starting up phase. Sustainable construction became a policy issue in the Netherlands in the 1990s, although the measures to meet the targets of sustainable construction are not adopted on a large scale since then. Major bottlenecks for sustainable construction appeared to be the awareness and interest among the stakeholders. Policies could boost sustainable construction by stimulating the awareness among stakeholders and encourage actions to incorporate sustainability considerations in integrated design, engineering and execution of construction projects.

Paper 122:

Economic Aspects of Composite Beam Using Trapezoidal Web Profiled Sections with Unequal Flange Mahmood Md. Tahir Associate Professor & Director, Steel Technology Centre, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia Thong Chin Mun, Siew Liang Phor Research Fellow, Steel Technology Centre, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia Abstract: This paper presents the analytical design method on Composite Trapezoidal Web Profiled (CTWP) as composite beam with full shear connection. Flange only method was adopted to determine the moment capacity of the beam as suggested in BS 5950-1:2000 and Steel Construction Institute. In this method the web of the CTWP beam is assumed not to contribute to the moment capacity of the beam as the web of TWP section is too thin and classified as semi-compact section. An unequal flange of TWP section is proposed for composite beam design. A series of parametric study has been carried out to compare the design of CTWP with the design of composite beam using hot-rolled British sections. The beam spans ranging between 6m to 12m were designed for both types of composite beam. The results showed that the percentage savings in steel weight by comparing CTWP sections with composite beam of hot-rolled section were in the range of 4% to 34% depending on the length of beam span. It can be concluded that the use of TWP section as composite beam contributed to the saving in steel weight by designing the beam as unequal flange.

Paper 124:

Developing an airy timber frame wall Faas Moonen Associate Professor, Eindhoven University of Technology, Faculty Architecture, Building and Planning, Department Structural Design & Construction Technology, Eindhoven, the Netherlands Abstract: An integral building concept is developed based on industrial produced, lightweight, load-bearing

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wall panels. The leading idea is to apply I-shaped studs combining structural solidity, thermal comfort, integrated piping and simple lightweight assembly. The I-shaped stud mainly consists of two fir laths 30x46 mm2 at intervals of 400 mm. Combined with hardboard and insulation makes a solid wall with impressive buckling loads (full-scale laboratory tests found an average axial load of 176 kN/m’ at buckling length 2.8 meter although the total dead weight is just 0.45 kN ~ 7.1 kg/m2). The composite load-bearing wall consists of approximately 3-5% solid substance and 95-97% stationary air and yet it seems to be suitable for a 3-story dwelling even when applying massive concrete floors. Since the composition of the wall panel is based on using durable materials and allows for full industrially manufacturing the integral building concept is meant to be preparatory for future house building.

investigations on bridges that were in different states of disrepair. This paper provides an overview of the problems and a brief description of the on-site forensic studies undertaken. Paper 126:

Analysis of Vibrations of Lightweight Floor Systems S.F.A.J.G. Zegers PhD researcher, Eindhoven University of Technology, Faculty Architecture, Building and Planning, Department Structural Design & Construction Technology, Eindhoven, Netherlands F. van Herwijnen Professor, Eindhoven University of Technology, Faculty Architecture, Building and Planning, Department Structural Design & Construction Technology, Eindhoven, Netherlands

Paper 125:

Role of Construction in the Poor Performance of Deck Panel Bridges

N.A. Hendriks Professor, Eindhoven University of Technology, Faculty Architecture, Building and Planning, Department Building Fysics and Science, Eindhoven, Netherlands

Atiq Alvi Senior Structural Engineer, Parsons Brinkerhoff, Tampa, Florida, USA Ivan Gualtero Structural Engineer, Ayres Associates, Tampa, Florida, USA

Abstract: During the last four decades floor systems used in housing and office-buildings in the Netherlands were mostly made of stone-like materials, and can be characterized as heavy. In recent years, in light of sustainable building methods, the trend is to reduce the use of materials and thus build lighter. Lightweight floor structures are however often found to be more susceptible to vibrations than heavier floor structures. The vibrations are caused by dynamic actions such as walking persons or vibrating machines such as a washing machine. This represents the floor system as a beam supported by hinges with a rotational spring at both ends. The influence of the parameters involved are described. An analytical approach is used that results in an approximation formula to find the first natural frequency depending on several parameters and recommendations for practical use are given.

Niranjan Pai Structural Engineer, Bridge Concepts, Tampa, Florida, USA Rajan Sen Professor, University of South Florida, Tampa, Florida, USA Gray Mullins Associate Professor, University of South Florida, Tampa, Florida, USA Abstract: Precast deck panel bridges were first used in the construction of highway bridges in Illinois in the early 1950’s. This type of construction offers significant economies; the stay-in-place (SIP) panel combined with a cast-in-place (CIP) topping can considerably reduce construction time as field forming is only needed for the exterior girder overhangs. Florida has approximately 200 precast deck panel bridges. Despite successful performance in other states, precast deck panel bridges have a long history of premature deterioration in Florida that has led to excessive maintenance and impacts to the traveling public. A program is underway to systematically replace selected deck panel bridges. During the replacement of these bridges the opportunity was taken to conduct on-site

Paper 127:

Rudiments of A New Foundation Concept Faas Moonen Associate Professor, Eindhoven University of Technology, Faculty Architecture, Building and Planning, Department Structural Design & Construction Technology, Eindhoven, the Netherlands Abstract: House building will in the end shift towards using large-sized industrially produced panels. To benefit in full of new housing methods the accuracy of a foundation must be geared to using large-sized wall

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panels. Since current foundation methods do not meet this accuracy a new foundation concept is developed to be prepared for future applications. A preliminary test in real practice showed the improved accuracy but also revealed additional benefits regarding costs and simplification of work. This new insight promises already opportunities in present-day house building. A major advantage besides accuracy is that all work can be done in unbroken activity to reply to shattered activities of current construction. The new foundation offers good prospects to have the entire work (including ground floor) contracted out to a subcontractor as an extension to groundwork, which is contracted out as a rule. Pilot tests in practice demonstrate substantial time reduction (30-45% on labour on site and additional by removing intervals between separate activities). Other advantageous aspects regard material use (almost halved though strength and stiffness are increased) and a prospect of pouring concrete for foundation beam simultaneous with concrete for ground floor. The new foundation is suited for strip foundations as well as pile foundations in housing.

Paper 129:

Reliability Construction of Multi-story Reinforced Concrete Buildings Toshihiko Yamamoto Professor, Department of Architecture Daido Institute of Technology, Nagoya, Aichi, Japan Abstract: This paper explains a reliability construction method to prevent structural damage such as cracking, excessive deflection and yielding of structural members during the construction of reinforced concrete buildings. The structural damage remains after construction and affects the building’s lifetime serviceability. An improved nonlinear analysis model of construction loads on the supporting floors of multi-story reinforced concrete buildings was presented and Monte Carlo simulations were performed to examine the variation of the construction loads for the reliability construction. The results indicate that the construction loads are inevitably heavy and the creep deformation is not negligible. The coefficient of variation due to the variation of concrete strength and Young’s modulus and shore rigidity was less than 10% for the construction loads and about 20% for the creep deformation during construction. The results of the nonlinear analysis and Monte Carlo simulations are compared with field measurements.

Paper 128:

CMU Elastomers and Window Safety Films: Dual-Use Retrofit Technologies for Airblast and Wind-load Protection

Paper 130:

K.R. Grosskopf, Ph.D. Assistant Professor, University of Florida, Gainesville, Florida, USA

The Determination of Rut Susceptibility of Carbon Fiber Modified Asphalt Binders in Hot-Mix Asphalt

Abstract: Fragmentation failure of unreinforced masonry and glazing systems are among the leading causes of injury and death during terrorist and storm events. As a result, concrete masonry unit (CMU) elastomers and window safety films have gained popularity as cost-effective alternatives to conventional reinforcement and high-strength or laminated glass, especially for building retrofits. Elastomeric spray-on coatings have shown to greatly improve tensile strength of infill masonry walls exposed to blast loads. Various combinations of wet glazed films and mechanical attachment systems, including those satisfying ASTM F1642 for glazing systems subject to airblast loadings, have been shown to meet windload and debris impact standards, including ASTM E1996 standards adopted by the International Building Code (IBC). Both technology concepts allow non-ductile wall and glazing assemblies to deform rather than fail in a sudden and catastrophic manner under non-point load wind overpressure, point load projectile impact, and positive and negative phase airblast loading. In addition, both technologies require little or no impact to existing building components and minimal loss of space use during retrofit.

R. Christopher Williams Associate Professor, Michigan Technological University, Houghton, MI, USA Andrea N. Kvasnak Research Assistant, Michigan Technological University, Houghton, MI, USA Bruce Wiljanen Research Assistant, Michigan Technological University, Houghton, MI, USA Abstract: Pavement engineers are attempting to reduce the occurrences of rutting utilizing evolving technologies. One of the techniques for preventing rutting is the use of modified binders in hot-mix asphalt (HMA). Recent interest has developed in testing the effects carbon fibers has on HMA related to rutting resistance. The feasibility and successfulness of carbon fibers in HMA was tested using a loaded wheel tester, an Asphalt Pavement Analyzer (APA). The carbon fibers were tested in HMA specimens with varying binder content and carbon fiber percentages. Analysis compared the rutting susceptibility of HMA with carbon fiber and HMA without carbon fibers. Since rutting problems mainly occur at high

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temperatures, binders intended for areas with significant rutting issues were examined. If the improvement in resistance to rutting are significant with the addition of carbon fibers then the added cost associated with carbon fibers may be justified. The ranking of the pavement’s rutting potential is compared to a neat binder and to another polymer modified binder. The effects of carbon fiber on improving the susceptibility of binders were examined to see if it has uniform enhancement properties for all binders or if it is only advantageous for certain asphalt binders.

Andrew Creteau Graduate Research Assistant, Colorado State University, Ft. Collins, CO, USA Kim Gilbert Assistant Research Engineer, Colorado Department of Transportation, Denver, CO, USA Abstract: Asphalt pavement density measurements were made using a conventional nuclear density guage. Five sets of density tests were made at each of nine sites during, or immediately following paving operations between July and September, 2004. Testing at each site attempted to capture differences in density caused by segregation under five distinct sets of circumstances. These included strip segregation along the centerline created by the auger gearbox of the paver, other visible segregation caused by practices such as truck dumping practices and hopper wing folding, transverse segregation caused by inherent design configurations of the paver including the slat conveyor system and screed extensions and stopping of the paver. Control sections were included where segregation was not visible during construction. Tests were conducted at random for each data set and replicated so that rigorous statistical analysis could be conducted. Results indicate that for the ‘strip’ and ‘visible’ data sets, an average decrease in density apparently occurs in the location of the segregation when all nine sites are included in the analysis. However, variability of the density data between the nine sites was high due to differences in segregation levels. For example, some sites had noticeable segregation during construction while other sites had only minor segregation. However, statistically significant differences in density were measured for all sites for the ‘paver’ transverse measurements, eight of nine sites for the ‘strip’ density sets and five of nine for the ‘visible’ data.

Paper 131:

Building Construction System with Recycled Materials- An Experimental Construction of Residential Plumbing AreaNaoto Mine Professor, Department of Environmental Space Design, Faculty of Environmental Engineering, The University of Kitakyushu, Kitakyushu, Fukuoka, Japan Hiroki Tsutsumi Assistant lecturer, Department of Environmental Space Design, Faculty of Environmental Engineering, The University of Kitakyushu, Kitakyushu, Fukuoka, Japan Abstract: It is said that the usage period of residential buildings in Japan is shorter than that of Western countries such as the US, UK, France, and Germany. It means that buildings are often demolished to build new houses. The demolition process creates a substantial volume of waste that can not be readily reprocessed. Building materials and components can be recycled and reused to mitigate this problem, however a recycling system has not yet been established. The purpose of this study is to establish a reuse system for building materials. To achieve this purpose an experimental construction was performed with used residential plumbing materials such as bath and kitchen fixtures. In the experimental construction process, the bathroom, kitchen, toilet, and wash basin rooms in an apartment house were assembled and disassembled. The paper describes a process for collecting reused materials and components, and the results of the construction experiment. Work processes and man-hours were analyzed. Man-hours to assemble used materials are approximately 1.5 times that of virgin materials.

Paper 133:

A Computational Proposal for the Efficient Use of The Rapid Tunnel Excavation Approach D.M. Emiris Lecturer, Department of Industrial Management & Technology, University of Piraeus D.K. Paterakis Civil Engineer

Paper 132:

D.E. Koulouriotis Lecturer, Department of Production Management Engineering, Democritus University of Thrace

Scott Shuler Associate Professor, Colorado State University, Ft. Collins, CO, USA

Abstract: The situation of a tunnel excavation is frequently encountered in several construction projects. Tunnel excavation typically involves very specialized staff (engineers, foremen, operators and workers), as

Identifying Segregation in Asphalt Pavements Using Rapid, Non-Destructive Techniques

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Saad Abo-Qudais Associate Professor, Civil Engineering Department, Jordan University of Science and Technology, Irbid 22110, Jordan.

well as specific and expensive machinery, thus requiring efficient resource allocation and considerable capital investment. High-level project management techniques need to be employed, in order to efficiently tackle inherent problems in such projects [TURNER 1999]. This paper deals with the presentation of a novel algorithm to perform excavation bi-directionally, in order to optimize resource usage and to minimize execution time. A computational algorithm to automatically schedule activities has been implemented, which enables efficient use of resources and minimization of idle times.

Naseem Matalka Research Assisstant, Civil Engineering Department, Jordan University of Science and Technology, Irbid 22110, Jordan. Abstract: The potential use of hydrated lime and Portland cement as a soil stabilizing admixture and the impact of stabilization on the California Bearing Ratio (CBR) and pavement construction cost were evaluated in this study. Two soil samples obtained from two locations in the northern part of Jordan (East of Irbid and Jordan University of Science and Technology (J.U.S.T.) campus) were evaluated in this study. Two types of stabilizing agent, lime and Portland cement, were added at different percentages by weight of dry soil. After 28 days of curing, the specimens were soaked in water for four days and drained for 15 minutes, then the California Bearing Ratio (CBR) test was conducted. The correlation between CBR and unconfined compressive strength for Irbid soil stabilized by lime was evaluated. This study also covers the characterization of the compaction behavior of stabilized soils.

Paper 134:

Siphon and Submerge Pipeline, Design and Behaviour using the Reptile Skeleton and Accordion Connection Afshin Turk Researcher, Dam – Hydropower Division, KWPA, Ahwaz, Khuzestan, Iran Shabnam Ghanavati-zadeh Biologist, Science Department, Jundi Shahpoor University, Ahwaz, Khuzestan, Iran Abstract: Submerge pipeline and siphon are time-consuming and costly due to executive problems and due to difficult access to under sea water. Settlements in marshland and ring cracks in the pipe skin are problems leading to pipeline reconstruction. Settlement and non- flexible connection exercise the stress unto the Joints. New design could be defined using the spinal column behaviors and reptile moving. The degree of freedom should be satisfied through two degrees rotation and one degree expansion at joint. Therefore, super flexibility could be obtained using the 3 degree freedom at each connection. Spinal parts must be simulated using the pre-cast concrete section with PE covering and accordion joint should be installed using the steel arms inside the concrete. Accordion behaviors could be obtained using the layers of hightensile PE with silk string which will guarantee the water proofing. In the workshop reptile spinal pipeline could be made by a series of production line of concrete sections, fabrication yard and parallel water channel near the production site. More advantages could be obtained through the new design: sewage pipeline are damaged at the joint through sewer exposure and extra rotations and the resulting deflection could be satisfied by the accordion joint.

The results indicated that the CBR value, for the two evaluated soils, increased as the percentage of lime increased to an optimum level of 6%, after which a decrease in the CBR was noted. On the other hand, the CBR value continued to increase as the amount of cement added to the soils increased. In contrast to the CBR results, Unconfined Compressive Strength of Irbid soil stabilized by lime continued to increase regardless of the amount of lime. For the two evaluated soils, Portland cement was found to be much more effective in improving the soil CBR value compared to that of the lime stabilizing admixture. Adding 2% of cement increased the CBR by 7.3 and 8.1 times for Irbid and J.U.S.T. soils, respectively. While adding 3% of lime increased the CBR value by 1.4 and 1.6 times for Irbid and J.U.S.T. soils, respectively. Increasing the amount of stabilizing materials caused a drop in the maximum dry density and a slight rise in the optimum moisture content of both soils. Paper 136:

K-Nut Factor of High Strength Bolts Part-I

Paper 135:

Effect of Soil Stabilization on California Bearing Ratio and Pavement Construction Cost

Dr. Khairedin M. Abdalla Assistant Professor, Civil Engineering Department, Jordan University of Science & Technology, 22110 Irbid, Jordan

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Paper 138:

Hurricane Survivability for Manufactured Housing: A Case Study in Disaster Mitigation for Low-Income Housing

Abstract: The thread lubricant condition of high strength bolts is important in determining the bolt-tensile characteristics. This paper presents .result of tests performed upon 20 mm (3/4-in.) diameter, 76.2-mm (3 in.) long, A325 (M164) bolts, as it varies under different thread and weathering conditions. Factors that affect the pretension-torque relation are K-nut factor, bolt diameter, bolt-material strength, thread conditions, and the surface conditions at the nut-washer-joint interface. Tests were performed upon 101 nut and bolt, to determine the effect of a lubricant and weather on the value of K-nut factor. Lubrication was found to influence the value of K-nut factor.

K.R. Grosskopf, Ph.D. Assistant Professor, University of Florida, Gainesville, Florida, 32611-5703, USA Abstract: An unprecedented hurricane season during 2004 saw four major hurricanes impact Florida within a span of six weeks. These storms left more than 3,000 people dead, including 152 in the U.S. The 2004 hurricane season also caused over $US 42B in damage. Of 152 manufactured home communities and 29,274 manufactured homes surveyed in Florida, 3,583 (12.24%) units were totally destroyed or non-reparable. 44,640 (40%) of the state’s 113,620 dwelling units receiving government assistance for structural damage were manufactured housing units. However, manufactured housing units constructed after the 1994 U.S. Manufactured Housing Construction and Safety Standard survived intact with little or no damage. This paper provides manufactured housing damage assessment data from 60 of 67 Florida counties affected by the 2004 Hurricane season, an analysis of common failure modes in pre-1994 housing stock, and new research on methods and materials incorporated by manufacturers following the 1994 HUD code amendment. It is anticipated that the research herein may assist the international community in providing safe and sustainable housing for rapidly developing countries experiencing population growth.

Paper 137:

Building Construction System with Recycled Materials R. Christopher Williams Associate Professor, Michigan Technological University, Houghton, MI, USA Jeffrey J. Stempihar Engineer, Reynolds, Smith and Hills, Flint, MI, USA Thomas D. Drummer, Ph.D. Associate Professor, Michigan Technological University, Houghton, MI, USA Abstract: Current flexible pavement design procedures in the United States are based upon the AASHO Road Test and subsequent updates and have not considered lateral displacement of vehicles across a pavement lane as a design input until the recent release of the 2002 AASHTO Pavement Design Guide for New and Rehabilitated Pavements. The lateral displacement of vehicles has been identified by researchers around the world to have an impact on the structural design of flexible pavements. As design methods are improved to better represent traffic loading in the field, wheel wander becomes increasingly important. Data were collected on 31 roadway sections consisting of 7761 tire contact points using a digital video camera. It was found that the lateral displacement (wheel wander) on interstate highways can be modeled by a normal distribution with a mean of 280.9cm with respect to the center pavement lane marking and a standard deviation of 30.7 cm. The impact of utilizing wheel wander in pavement design was examined using linear elastic layer analysis. Thirty-six design simulations were examined and found the inclusion of wheel wander does between 30 and 65 percent of the amount of damage of designs not utilizing wheel wander.

Paper 139:

Enhancing Construction Materials Recyclability Abdol R. Chini Professor & Director, Rinker School of Building Construction, University of Florida, Gainesville, Florida, USA Stuart Bruening Assistant Project Manager, Hardin Construction Company, LCC Atlanta, Georgia, USA Abstract: The demolition of building structures produces enormous amounts of materials that in most countries results in a significant waste stream. Deconstruction is emerging as an alternative to demolition around the world (Kibert and Chini, 2000). Deconstruction is the systematic taking apart of the building for the purpose of materials reuse as opposed to destructive demolition. As its primary purpose, deconstruction seeks to maintain the highest possible value for materials in existing buildings by dismantling in a manner that will allow the reuse or efficient

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recycling of the materials that comprise the structure. While the process of demolition often leads to the mixing of various materials and contamination of non-hazardous components, deconstruction helps to preserve and reuse materials. This paper is an overview of current practices in recycling of construction materials in the US and shows how deconstruction increases material recyclability by creating the opportunity for material reuse and upcycling, whereas demolition promotes downcycling and landfilling (Chini, 2005).

Abstract: Many water authorities, both nationally and internationally, have been forced to rethink their strategies for achieving water balance as a result of growing water demands, droughts, reduced storage yields and environmental sustainability considerations. In particular, regulatory bodies in Australia are demanding that water managers exhaust network management efficiencies before considering new water source options (e.g. dams, desalination, pipelines etc.). Demand management incentive schemes in conjunction with water recycling and pressure and leakage management (PLM) initiatives are a few examples of the strategies being adopted by water authorities to achieve water balance without expanding their existing water infrastructure asset requirements. However, justification for PLM options remains difficult due to the limited amount of quantified evidence of the achievable benefits over an urban water systems life cycle. As the first stage in the development of a holistic PLM decision support system, this paper quantifies the benefits derived from a PLM strategy in a trial area located on the Gold Coast, in South-East Queensland, Australia.

Paper 140:

Cement/Fly Ash /Metakaolin Ternary Blends: Effects on Compressive Strengths of Mortars Billy Wiggins, M.S. Professional Engineer, Thiele Kaolin Company, Sandersville, Georgia, USA Khalid Siddiqi, Ph.D. Construction Department Chair, Southern Polytechnic State University, Marietta, Georgia, USA Abstract: The objective of this study is to experiment the possibility of achieving higher compressive strengths and sufficient workability without the use of high range water reducer, in a cement ternary blend containing Metakaolin and fly ash. Metakaolin cement blends provide similar or slightly better hardened concrete properties and better fresh concrete properties as compared to silica fume. Past research indicates that ternary blends of silica fume and fly ash yield a high performance concrete with good early strength age properties and improved workability over concrete containing only silica fume(4). Concretes containing fly ash and Metakaolin should yield a synergistic ternary system. One important finding was that the most economical blends for strength was a cement/Metakaolin blend with no fly ash. An initial cost was calculated for each mix. The study will benefit concrete mix designers, batching plant owners, and those involved in production and supply of concrete products.

4.2

Paper 142:

Performances of double-skin envelopes in Mediterranean Areas Francesco Fiorito Doctoral Candidate, Department of Architecture and Urban Planning, Politecnico di Bari, Bari, Italy. Paolo Pastore Associate Professor, Department of Architecture and Urban Planning, Politecnico di Bari, Bari, Italy. Abstract: The advent of modern architecture has fundamentally changed the role and the appearance of building envelopes. The progressive substitution of traditional materials with highly-technological ones, is an especially clear evolution in office buildings, for which the façade is considered more than a simple barrier between interior and exterior and assumes a promotional role. For these building typologies totally-glazed external surfaces are frequently adopted that satisfy aesthetic and technological needs but, at the same time, cause glare and overheating in the internal spaces, especially in Mediterranean climates, where summer solar radiation reaches very high values. There is an increasing employment of double-skin façades in commercial buildings, especially when vertical external closure becomes a technological element to be integrated with other building subsystems, such as horizontal enclosures and HVAC systems.

Sustainable Construction Techniques

Paper 141:

Evaluating the Impact of Pressure and Leakage Management Strategies on Urban Water Systems: A Trial Study Mark Girard Executive Officer, Queensland Water Directorate, Brisbane, Queensland, Australia Rodney A. Stewart Lecturer, School of Engineering, Griffith University, Gold Coast, Queensland, Australia

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In this way the employment of advanced systems, instead of traditional glass surfaces, enables us to obtain significant energy savings, creating a comfortable internal environment. Various solutions can be evaluated, choosing suitable boundary conditions such as climate, exposure and height of the building that differ with respect to the parameters of ventilation, shape and dimensions of the airspace, and the characteristics of the glass pane. Summarizing the earliest results of simulations of the energetic behaviour of office buildings, the paper will present a classification of the performances offered by double-skin systems in relation to the different parameters used. This could guide the designer in the evaluation of the efficiency conditions of the different systems.

related to environmental goals, things will get worse. This paper considers the nature of corporate culture, its importance to an organisation, and its impact on organisations performance. A review of the impact of industrial and business growth is considered as a foundation for the need for eco-effectiveness in business, energy-efficient buildings and “green buildings”. How to reconcile corporate culture with an eco-focussed organisation is explored, and suggestions made for organisations to follow. Paper 145:

Sustainable Engineering as a Tool for Improving the Manufactured Housing Industry within the United States

Paper 143:

Donald D. Liou Associate Professor, Department of Engineering Technology, University of North Carolina at Charlotte, Charlotte, North Carolina, USA

Global Infrastructure as Counter Measures for Disaster Caused by Climate Change Keizo Baba Professor, Research Institute, Kochi University of Technology, Kochi, Japan

G. Bruce Gehrig Assistant Professor, Department of Engineering Technology, University of North Carolina at Charlotte, Charlotte, North Carolina, USA

Abstract: Sustainability usually implied usually that the use of energy and materials in an urban area to be in balance with what the region can supply continuously through natural processes is important concept of sustainability and becomes common sense. But it will be necessary to have some concept of wide sense such as making countermeasure for global problem like climate changes. For instance by global warming, the sea water level will rise. This will be a potential of big disaster of shortage of food, especially in Asia where rice is major crop of food. If level of seawater rise, seawater will penetrate into paddy fields of rice production. Since rice plant cannot be grown in seawater, rice production will be reduced which will cause the big disaster. It is necessary to do some counter measure for this as one of important items in sustainable construction. The movement of rise of seawater will be quite gradual. Therefore, sometime these movements could be overseen. But, it is necessary to be considered as one of the big items in sustainable development especially in Southeast Asia.

Abstract: Over the last fifty years manufactured housing has been a major component of the affordable housing market in rural areas within the states of North Carolina and South Carolina, USA. The market experienced steady growth until the late 1990’s when the market began to contract; in part because of the perception among homebuyers that manufactured housing is low quality. This perception is driven by the mobile home segment of the market where the houses are not constructed to conventional building codes and are often situated in poorly planned trailer parks. However, a significant portion of the market actually consists of factory built homes with construction and features comparable to conventional framed houses. This perception gap was noted by the U.S. Department of Housing and Urban Development’s Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st Century. This paper examines the implications of the Commission’s findings on the Carolina manufactured housing industry and uses a sustainable engineered modular house designed and constructed by students at the University of North Carolina at Charlotte as a case study to explore how sustainable design principles can be used as a vehicle to overcome the perception gap and improve market competitiveness.

Paper 144:

Achieving Energy Conservation -The Role of Corporate Culture Dr Peter Rutland Executive Director, Strategic Development Open Polytechnic of New Zealand Wellington, New Zealand Abstract: Evidence of what business has done to the environment is plentiful, and unless business goals are

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reinforcement whereas the latter has common stirrups. Both specimens have been suffered the same full cyclic loading with increasing deformation, 2 full cycles at every step. From the results we can see that the specimen with rectangular spiral reinforcement has shown a better response in terms of maximum loads and hysteretic energy absorption compared to the one of the specimen with the stirrups.

Paper 146:

Reducing Impact of Construction Operations on the Environment Hazem Elzarka, PhD, PE, LEED AP Associate Professor, Department of Construction Science University of Cincinnati, Cincinnati, Ohio, USA Abstract: Construction projects can have a significant impact on the surrounding environment. Storm water runoffs carrying eroded soil and potentially hazardous materials from construction site can impact water quality in nearby waters, increase sedimentation, affect navigation and recreational activities and disrupt aquatic life. Construction and demolition activities generate large amounts of solid waste that is estimated to equal 40% of the total solid waste stream in the United States. Inadequate construction sequencing and poor quality assurance measures may result in indoor air contamination that can continue to impact indoor air quality over the life time of the building. A recent research project conducted by the author has investigated current strategies for reducing environmental impact of construction operations. This paper reports on the research findings. Specific strategies discussed in the paper include controlling storm water runoff to reduce erosion and contamination of receiving waters, recycling and reusing materials to reduce volume of construction waste, proper sequencing of construction activities to ensure indoor air quality and development of indoor air quality management plans.

Paper 148:

Modelling Sustainable Competitive Advantage in Services Organisations Dr Nicholas Chileshe Senior Lecturer, School of Environment and Development Sheffield Hallam University, Sheffield, UK Professor Paul Watson Principal Lecturer, School of Environment and Development Sheffield Hallam University, Sheffield, UK Dr Dmitry Maslow Economics and Management Faculty Ivanovo State Power University, Ivanovo, Russia Abstract: For organisations to attain and/or maintain a sustainable competitive advantage they require a competitive orientated management system. The system should address key concepts such as leadership, personnel and development. However, the system also has to fully address the needs of stakeholders. Twenty-five different management function features are correlated with corporate profitability and stakeholder satisfaction. The study used Canonical correlation methods to correlate simultaneously the management function features to the assessment of competitive advantage measures. Through a survey of data collected from 39 employees and 5 managers from the Russian Service Industry, this study empirically refines and validates 5 constructs for management functions. The constructs refined in this study are compared with other major quality measurement instruments. The study reports on the operational framework of Management Functional Assessment Model (MFAM), which can be used to examine the levels of critical factors relating to competitive advantage. The findings indicate that the MFAM is both reliable and valid. Qualitative data was collected based on the following five management function constructs, namely, Forecasting Planning, Organising, Motivation, Control and Co-ordination. Based on a fuzzy scoring system, Construction organisations are able to rate the advancement of identified and validated Management Maturity. The result of the assessment, is a classification of the organisations into five different levels of management maturity in terms of achieving competitive advantage,

Paper 147:

Seismic Behaviour of Reinforced Concrete Columns With Rectangular Spiral Shear Reinforcement Chris G. Karayannis Professor, Department of Civil Engeneering Democritus University of Thrace, Xanthi, Greece, GR George M. Sirkelis Civil Engineer, MSc, Doctoral Candidate, Department of Civil Engeneering Democritus University of Thrace, Xanthi, Greece, GR Abstract: In this study the innovative technology of applying continuous rectangular spiral reinforcement as shear reinforcement of reinforced concrete columns (instead of stirrups) under seismic loading is experimentally investigated. The experimental program comprises two exterior beam–column joints. The length of the column part is equal to 1.80 m and the cross section is 20×20 cm. The beam length is 1.10 m and the cross section 20/30 cm. The first of the specimens has continuous rectangular spiral shear

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ranging from Unaware to Achiever, and also identifies the strengths and weaknesses of their quality initiatives. The paper further explores the model’s constituent parts and relates them to the process of gathering data on organisational requirements focussed upon attaining/maintaining a competitive advantage.

Abstract: This paper assesses the risks associated to the construction costs of infrastructure projects due to changes in the energy prices as the energy prices have changed drastically in the last twelve months and are expected to rise further. This assessment is performed on the basis of the actual data taken from two ongoing projects in the public sector. For this purpose, major project components are identified which have substantial energy input and then the energy input in them is calculated to work out that proportion of cost which is directly sensitive to the energy prices.

Additional Papers Paper 149:

Predicting Effectiveness of Construction Project Management: Decision-Support Tool for Competitive Bidding

Paper 151:

Lessons Learned from Two PFI Road Projects in the UK

Arvydas Juodis Professor, Department of Civil Engineering Technologies Kaunas University of Technology, Kaunas, Lithuania

Rıfat Akbiyikli PhD Candidate, Research Institute for Built and Human Environment, University of Salford, Salford M7 1NU

Rasa Apanaviciene Assistant Professor, Department of Civil Engineering Technologies Kaunas University of Technology, Kaunas, Lithuania

Dr David EATON Senior Lecturer, Research Institute for Built and Human Environment, University of Salford, Salford M7 1NU

Abstract: This article presents construction project management effectiveness modeling from the construction management organization perspective. The paper reports on construction project performance data collected from construction management companies in Lithuania and the USA. Construction project management effectiveness model (CPMEM) was established by applying artificial neural networks (ANN) methodology. Twelve key determinants factors that influence project management effectiveness in terms of construction cost variation were identified covering areas related to the project manager, project team, project planning, organization and control. The CPMEM can be used during the competitive bidding process to evaluate management risk of a construction project and predict construction cost variation.

Abstract: PFI is an extension of the policies to shift the paradigm of government from public administration to public management; and its real aim is administrative reform and its main mission is to transfer much of the public sector’s role to the private sector in infrastructure construction and service provision. The PFI is not about borrowing money from the private sector. It is all about creating a structure in which improved Value for Money (VFM) is achieved through private sector innovation and management skills delivering significant performance improvements and efficiency in service delivery. An important feature of the introduction of any new procurement process is learning from past experiences. This paper presents the critical feedback from two PFI Road Projects in the UK identifying the key messages from conception to operation. Learning from these key messages should improve the ‘bankability’ of future PFI road projects and ensure that all stakeholders benefit from the iterative learning from the projects.

Paper 150:

Risks to the Construction Costs due to Changes in Energy Prices Syed Amir Raza Business Process Reengineering Manager, Project Management Unit, Planning and Development Department, Government of the Punjab, Lahore, Pakistan.

Paper 152:

An Investigation of Pre-Construction Problems between Building Clients and Designers: A Study of Lagos State, Nigeria Martin Oloruntobi Dada Department of Building, University of Lagos, Akoka, Lagos, Nigeria.

Khalid Ahmed Khan Project Director, Project Management Unit, Planning and Development Department, Government of the Punjab, Lahore, Pakistan.

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Moruf Bello Department of Building, University of Lagos, Akoka, Lagos, Nigeria.

Quantity Surveying, University of Johannesburg, South Africa. Abstract: In South Africa the higher educational landscape has changed in accordance with government’s commitment to transformation and increased access to higher education by all its citizens. Consequently, universities of technology (formally technikons) are charged with the responsibility of delivering instructional offerings that are both relevant and responsive to the needs and priorities of the national economy. These institutions are expected to offer career-oriented educational programs designed to meet the needs of industry and commerce in a high-tech global economic environment. Their approach to education is practical and outcomes-based, with the intent that their graduates are immediately employable and productive. A key component that ensures this productivity is the inclusion into their academic programs of periods of experiential learning spent in industry. Internationally, internships, or service learning form an integral part of construction education while not always compulsory. In South Africa the experiential learning component of a co-operative education construction program is compulsory at universities of technology. Previous studies have shown that South African construction industry employers prefer educational programs that include a period of experiential learning. The views of samples were canvassed nationally using self-administered structured questionnaires of 60 industry participants, 30 academic staff, and 186 third and final year students. This paper reports on the views of the staff and industry samples on the experiential component of construction management programs

Abstract: The successful execution of a building project depends, on amongst other things, the nature of the relationship and understanding of expectation that exists between building clients and designers. The research presented herein seeks to investigate the problems between building clients and designers during the pre-construction stage. Data was collected from a randomly selected sample of building clients and designers in Lagos State. The data was subjected to severity index analysis and other inferential statistical analyses. The results indicated that building clients and designers acknowledge that there exist problems between them. Furthermore, it was discovered that there was no significant correlation and agreement in the ranking of the problems between building clients and designers. The study recommended that both the client and designer should strengthen their perceived areas of weaknesses and engage in more fruitful communication to address the issues raised in the study. Paper 104:

Information System for Construction Management of Highways Ratko Mitrovic Ph.D Professor, University of Montenegro, Podgorica, Montenego, Serbia and Montenegro Abstract: In this paper we will present the information system intended for the Highways of Montenegro construction firm. As a basis for this information system we shall use the Primavera software’s. The information system of this company has to be compatible with the optimal model of organization structure. In this information system we shall present and comprise the original software for marketing of construction companies. We hope this paper will be very useful for future development of The Highways of Montenegro firm as well as for providing of better conditions for realization and for planning and maintenance of highways in the forthcoming period.

Paper 153:

Construction Management Education at Universities of Technology Theo C Haupt Research Coordinator, Cape Peninsula University of Technology, Faculty of Engineering, South Africa. Ferdinand Fester Head of Department Construction Management &

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