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Article
Publication date: 13 June 2022

Bee Lan Oo, Benson Teck-Heng Lim and Goran Runeson

With the aim to provide a global view of factors affecting mark-up size on construction projects, this study performs a meta-analytical review of the relevant studies over the…

Abstract

Purpose

With the aim to provide a global view of factors affecting mark-up size on construction projects, this study performs a meta-analytical review of the relevant studies over the past 20 years.

Design/methodology/approach

The analytical process involved the identification and evaluation of the importance of critical factors affecting mark-up size on construction projects, and the assessment of the generalisability of findings of the meta-analysis. A random-effects model was adopted in the statistical meta-analysis.

Findings

The results show that there are 23 critical factors, and the top five factors are: (1) competitiveness of other bidders; (2) number of bidders; (3) relationship and past experience with client; (4) experience on similar project; and (5) project size. A heterogeneity test further shows that there is no statistically significant heterogeneity across the studies, reinforcing the generalisability of the findings to a global context.

Research limitations/implications

The list of critical factors from a global perspective should form a good basis for future efforts in bidding model development.

Practical implications

The research findings have practical implications to both construction clients and contractors in formulating their contracting practices and strategies.

Originality/value

This is the first meta-analysis of a sizeable collection of replicated studies on factors affecting mark-up size on construction projects in the literature.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 11 April 2024

Bee Lan Oo and Benson Teck-Heng Lim

This study aims to explore the gender differences in working from home (WFH) experiences during the pandemic from the Australia’s construction workforce perspective. Specifically…

Abstract

Purpose

This study aims to explore the gender differences in working from home (WFH) experiences during the pandemic from the Australia’s construction workforce perspective. Specifically, it explores gender differences in terms of: (1) the respondents’ family responsibilities during the pandemic; (2) their WFH experiences prior to and during the pandemic; and (3) their perceptions of the impacts of challenges associated with WFH on their work activities and performance along with their self-reported work performance when WFH, overall satisfaction with WFH and preference for WFH post-COVID.

Design/methodology/approach

This study adopted a survey design to reach the targeted sample population, i.e. construction workforce in the Australian construction industry who has had experienced WFH during the pandemic. Data was collected using an online anonymous questionnaire survey.

Findings

The results show notable gender differences in various aspects including family responsibilities, workplace arrangements and perceptions of the impacts of the challenges associated with WFH on work activities and performance. Also, statistically significant associations are detected between gender and the respondents’ self-reported work performance when WFH, overall satisfaction with WFH and preference for WFH post-COVID.

Originality/value

Even prior to the COVID-19 pandemic, little is known about WFH experiences among construction workforce due to the low prevalence of regular and planned remote working in the industry. This is the first study sheds light on construction workforce WFH experiences using gender lenses. The findings have implications for construction-related firms continuing with WFH arrangement post the pandemic, which may include the formulation of policy responses to re-optimize their present WFH practices.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 August 2022

Yixi Zhang, Bee Lan Oo and Benson Teck-Heng Lim

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or…

Abstract

Purpose

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or no-bid and mark-up decisions. Focusing on the large and medium-sized contractors in the Jilin province, China, the purpose of this study is to examine important factors affecting their decision to bid (d2b) and mark-up decisions and investigate differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Design/methodology/approach

This study used a survey design for timely data collection from a large population. Contractors’ bidding attitudes was collected using an online survey questionnaire with a list of 40 key factors. Statistical analytical methods were applied for comparing the two groups of contractors.

Findings

The results of this study indicate that factors related to client conditions are most critical for both large and medium-sized contractors in their d2b and mark-up decisions. The results also show statistically significant differences between the two groups of contractors on a subset of factors affecting their d2b and mark-up decisions. The large contractors have placed more emphasis on projects' potential financial and strategic benefits. Another notable finding is that both groups of contractors have placed great emphasise on “government legislations” in their d2b and mark-up decisions.

Research limitations/implications

These findings should be interpreted in consideration of several limitations. Firstly, the sample size is relatively small, and the focus was on a single province in the China construction industry. Next, this study only explores differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Practical implications

Contractors could refer list of critical factors in competing for jobs in Jilin province or other provinces of similar institutional and economic settings. Construction clients, on the other hand, should consider the list of critical factors in the formulation of their competitive tendering procedures, thus enhancing the efficiency in their procurement of construction services.

Originality/value

Research on contractors’ bidding decision-making in the context of Chinese construction industry remains scarce; the research findings have implications for the industry stakeholders.

Details

Construction Innovation , vol. 23 no. 5
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 14 September 2022

Qian Zhang, Bee Lan Oo and Benson Teck-Heng Lim

The interest in corporate social responsibility (CSR) has become burgeoning in the construction industry as firms are under constant pressure from socially conscious stakeholders…

Abstract

Purpose

The interest in corporate social responsibility (CSR) has become burgeoning in the construction industry as firms are under constant pressure from socially conscious stakeholders to demonstrate their efforts to address various CSR issues. This study aims to unveil the key practices and impact factors (KPIFs) of CSR implementation in construction firms and the interrelationships among different key impact factors toward attaining CSR practices.

Design/methodology/approach

Mobilizing the integrated institutional, stakeholder and self-determination theories, a theoretical framework was first developed to elaborate the potential inter-relationships among the key impact factors toward CSR implementation. Data were collected from extra-grade contractors through an online questionnaire survey and was then analyzed by the partial least square structural equation modeling method.

Findings

The results show that construction firms' CSR practices could be classified into eight distinct key dimensions, e.g. shareholders' interests, government commitment and environment preservation. It is found that three groups of key impact factors – external institutional factors (especially coercive-normative factors), intrinsic factors (especially strategic business direction and organizational culture) and identified factors (i.e. the perceived importance of CSR practices) – have statistically significant positive impacts on most key dimensions of CSR practices.

Practical implications

The research findings have implications for top management to better understand CSR implementation, thereby helping them secure legitimacy to survive and advance in the competitive construction businesses.

Originality/value

The findings contribute to the theoretical body of knowledge in CSR by modeling and empirically demonstrating the influence mechanism of CSR implementation in construction within an integrated model.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 16 February 2022

Qian Zhang, Bee Lan Oo and Benson Teck-Heng Lim

The ability of construction firms to become more environmentally conscious and socially responsible for their business activities has been touted as the key driver for improved…

1184

Abstract

Purpose

The ability of construction firms to become more environmentally conscious and socially responsible for their business activities has been touted as the key driver for improved individual firms' competitiveness. This study explores the key dimensions of corporate social responsibility (CSR) practices and their impact factors among construction firms.

Design/methodology/approach

Through the institutional, stakeholders and self-determination theories, this study proposed a conceptual framework of CSR implementation. For its validation, data were collected from 90 top-tier construction firms using an online survey and analyzed via a two-pronged factor analysis method.

Findings

The empirical results demonstrate that the CSR practices of construction firms include eight key dimensions, e.g. shareholders' interests, government commitment and CSR institutional arrangement. The three key groups of impact factor of CSR implementation are (1) identified factors (i.e. contractors' perceived importance of CSR practices); (2) external institutional factors (i.e. coercive and normative factors and mimetic factors); and (3) intrinsic factors (i.e. strategic business direction, resource and capability and organizational culture).

Practical implications

The research findings inform the practitioners about how to enact, manage and improve firms' socially responsible goals so as to fulfill their key stakeholders' requirements and expectations and thus enhance their legitimacy in construction businesses.

Originality/value

This study contributes to CSR knowledge by identifying and empirically demonstrating valid measurements of the key dimensions of practices and impact factors toward CSR implementation by construction firms.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 5
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 9 September 2014

Bee Lan Oo, Florence Yean Yng Ling and Alexander Soo

Contractors rely on effective pricing methods in order to translate potential business into reality for long-term survival of their firms. This involves effective utilization of…

1278

Abstract

Purpose

Contractors rely on effective pricing methods in order to translate potential business into reality for long-term survival of their firms. This involves effective utilization of bidding feedback information toward winning jobs with high profit potential. The purpose of this paper is to experimentally investigate student (inexperienced) bidders’ competitiveness under full and partial information feedback conditions when the number of competing bidders is large (n=12).

Design/methodology/approach

This paper adopted an experimental research design. The design used between-subjects variation and involved information feedback as the treatment variable with 120 students who enrolled in a cost-estimating course participated in the experiment.

Findings

The result shows that the variations in bids over time for both levels of information feedback are statistically significant. It is found that bidders with full bidding feedback information are more competitive than those with partial bidding feedback information. The bid-spread analysis and the identified effect of these two information feedback conditions on awarded contract sum, provide some further evidence that full information feedback condition would lead to lower average bids in construction bidding.

Practical implications

The implication of the findings for construction clients is that they should provide as much bidding feedback information as possible so that the bid prices will be competitive.

Originality/value

Given the ambiguity inherent in field data, this paper provides strong justification of using experimental research design in advancing the understanding of construction pricing under different information feedback conditions. In addition, it demonstrated the suitability of using student subjects in similar experiments in the context of construction bidding.

Details

Engineering, Construction and Architectural Management, vol. 21 no. 5
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 January 2012

Bee Lan Oo, Hing‐Po Lo and Benson Teck‐Heng Lim

Winning a bid will carry implications for capacity level of a construction firm. This paper aims to examine the impact of a winning bid on contractors' bid pricing strategies.

3905

Abstract

Purpose

Winning a bid will carry implications for capacity level of a construction firm. This paper aims to examine the impact of a winning bid on contractors' bid pricing strategies.

Design/methodology/approach

In identifying the specific types of bidding trends before and after a winning bid, the variations in bids are expressed as a function of time relative to winning bid – the “event” of interest in this study – using a piecewise mixed effects model. The bids analysed comprised series of bids with a winning bid in between, recorded from Hong Kong building contractors.

Findings

The results show that there is a relationship between bid price and bidding success. The bidders in general bid low for time periods before a winning bid and they are less competitive in time periods after a winning bid. However, by considering the individual bidders' characteristics that relate to differences in bidding competitiveness, it is shown that there is remarkable heterogeneity among the bidders in bid pricing decision for pre‐ and post‐winning periods. Nevertheless, the statistically significant bidding trends before and after a winning bid strengthen the notion that systematic changes in bidding behaviour over time do occur in reality in response to changes in firm capacity level.

Originality/value

This empirical investigation provides strong evidence on the systematic changes in bidding behaviour over time in response to changes in firm capacity level, supporting the need to incorporate firm capacity level in the future development of a suitable theoretical framework on construction bidding.

Details

Engineering, Construction and Architectural Management, vol. 19 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 18 January 2016

Bee Lan Oo and Benson Teck-Heng Lim

The game-based learning has been used very successfully in some areas of formal education. In construction management, there is an increased uptake of games in teaching and…

1139

Abstract

Purpose

The game-based learning has been used very successfully in some areas of formal education. In construction management, there is an increased uptake of games in teaching and learning. Focusing on a bidding game, the purpose of this paper is to evaluate its ability in enhancing students’ learning. The specific objectives are to: examine the effectiveness of the game as a teaching mechanism; explore students’ learning experience, preference and motivation to participate in the game; and identify the relationship between game features and students’ learning experience and overall satisfaction.

Design/methodology/approach

This paper adopted a survey research design. A questionnaire survey was conducted in two universities in Australia, involving 100 students in the gameplay.

Findings

The results show that the overall student feedback is positive with the vast majority of the students enjoying the learning experience. Students from both institutions have indicated their preference for group-based game sessions. However, the students have divergent opinions about the game incentive and motivation. It is found that there are significant correlations between some of the game features and students’ learning experience and overall satisfaction.

Practical implications

The bidding game clearly has potential for adaptation in construction bidding-related courses. Educators could consider incorporating the significant game features towards improving students’ learning experience and overall satisfaction.

Originality/value

Given there are limited studies that aimed at evaluating educational games, the student feedback in this research should facilitate more critical and reflective process for incorporating similar form of games in teaching construction management and bidding-related courses.

Details

Engineering, Construction and Architectural Management, vol. 23 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 11 September 2007

Bee Lan Oo, Derek Drew and Hing‐Po Lo

In order to compete successfully, international contractors need to have an understanding not only of the make‐up of the different competitive environments within each country…

1422

Abstract

Purpose

In order to compete successfully, international contractors need to have an understanding not only of the make‐up of the different competitive environments within each country, but also of contractors' competitive behaviour within those environments. Contractors' mark‐up decision making in public sector contracting is directly compared in two construction markets – Hong Kong and Singapore.

Design/methodology/approach

Regression analysis is used to compare the lowest percentage mark‐up in both markets against four mark‐up decision factors that fall into two groups – market‐environment factors (i.e. number of bidders, market conditions) and project‐specific factors (i.e. type and size of project). Data were gathered using a designed bidding experiment.

Findings

In line with de Neufville et al.'s “good year‐bad year” study, the effect of market conditions was found to be independent of the number of bidders in both markets; contractors' mark‐up decreases as the number of bidders increases, with lower mark‐up in recession. In addition, this study provides evidence that contractors' mark‐up behaviour varies in different markets: Hong Kong contractors' mark‐up behaviour is more straightforward, in that only the market‐environment factors are significant. However, Singapore contractors' mark‐up behaviour is affected by project type in addition to the market‐environment factors. Project size was not found to be significant in either market.

Originality/value

The empirical findings provide a valuable insight into contractors' mark‐up behaviour, especially those contractors intending to bid for jobs in these two internationally renowned construction markets.

Details

Engineering, Construction and Architectural Management, vol. 14 no. 5
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 July 2010

Benson Teck Heng Lim, Bee Lan Oo and Florence Ling

Contractors adopt various strategies to achieve their firms' objectives of continued existence and further development, and to guide the relationship between the firms and the…

2795

Abstract

Purpose

Contractors adopt various strategies to achieve their firms' objectives of continued existence and further development, and to guide the relationship between the firms and the business environment within which they operate. An economic recession drives firms to undertake unusual steps to survive within an environmental context. The purpose of this paper is to examine the survival strategies of Singapore contractors in the eight years of unprecedented recession in the industry from 1997 to 2005 are examined.

Design/methodology/approach

In total, 34 interviews were conducted with senior executives of large and medium‐sized construction firms in Singapore to identify their survival strategies during the recession period.

Findings

Three categories of strategies are identified: contracting‐related actions, cost‐control related actions, and financial‐related actions. The results show that most contractors opted to bid for more projects that are within their firms' resources and capabilities in contracting for jobs. To control cost, all contractors implemented stricter site management on material wastage, stricter financial management on firms' cash flow, stricter and procurement procedures. The majority of them froze salaries and stopped hiring. In order to remain solvent, most contractors set aside a sum of money from their reserves for unforeseen circumstances.

Practical implications

Contractors should learn how to stay adequately lean in managing their business in order to be flexible and responsive to changes within the business environment. The findings highlight the importance of effective cost, risk, relationship and resource management.

Originality/value

The findings provide valuable lessons to construction firms in preparing for volatile market conditions during a recession.

Details

Engineering, Construction and Architectural Management, vol. 17 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

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