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Article
Publication date: 28 May 2024

Terence Y.M. Lam and Keith S. Gale

Construction framework agreements are identified by the UK Government’s Construction Strategy 2025 as an integrated procurement path to improve construction industry efficiency…

Abstract

Purpose

Construction framework agreements are identified by the UK Government’s Construction Strategy 2025 as an integrated procurement path to improve construction industry efficiency. However, criticisms from the industry have arisen from the lack of transparency and incorrect application of such frameworks. This paper aims to examine the client and supplier relationships within a framework agreement to discover what behaviour change drivers should be applied in the framework process to achieve the desired project outcomes.

Design/methodology/approach

A triangulation approach was adopted. An initial literature review on organisational behaviour and job performance theories was conducted followed by a qualitative expert review survey of client construction managers to confirm the project outcomes desired by public-sector clients and the associated behaviour change drivers. This was followed by a qualitative multiple-case study investigation of eight typical framework projects to form a commonality of views to explain the impact of behaviour change drivers on project outcomes.

Findings

Results from both qualitative studies demonstrated that improvements in project outcomes of time, cost, quality, sustainability and closer relationships can be driven by two sets of behaviour drivers: client organisational behaviour change drivers (setting up incentive and risk-sharing procurement approach, effective communication through development of stronger relationships and performance monitoring using contract key performance indicators) and supplier contextual behaviour change drivers (motivating conscientious behaviour and attitude towards self-improvement and innovations, supporting shared culture of providing services aligning with the client needs, promoting learning and development amongst all suppliers and most importantly providing trust and collaboration to the client).

Research limitations/implications

The investigation was based on an expert review with eight multiple-case studies conducted within the geographical area of England. Further research should be conducted nationwide so that the findings can become more robust and benefit the entire public sector.

Practical implications

It is suggested that framework managers should apply the supplier contextual performance drivers as selection criteria in the procurement process, whilst the client organisational performance drivers should be applied in the whole procurement and construction monitoring process to drive project outcomes aligned with the government construction policy objectives.

Originality/value

This research demonstrates that the project behaviour of clients and suppliers can be shifted within the construction framework environment to yield the desired project outcomes. This can be achieved by applying the client organisational behaviour drivers and the supplier contextual behaviour change drivers in tandem to optimise the framework process.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 25 September 2023

Terence Y.M. Lam and Keith S. Gale

Construction frameworks are recognised by the UK Government as an integrated procurement path to deliver efficiency, collaboration and sustainability. This research paper aims to…

Abstract

Purpose

Construction frameworks are recognised by the UK Government as an integrated procurement path to deliver efficiency, collaboration and sustainability. This research paper aims to develop a performance-driving model for framework procurement to align with the government construction policy objectives.

Design/methodology/approach

A quantitative hierarchical regression analysis was conducted to examine the causal relationships between project outcomes and performance drivers. A successive qualitative multiple-case study involving eight typical construction framework projects was examined to further explain casual relationships.

Findings

Conclusive results from the quantitative and qualitative analyses validated the performance-driving model, generalising a framework procurement principle that project outcomes of time, cost, quality, sustainability and closer relationships are significantly driven by supplier's task and contextual performance drivers, and client's organisational drivers.

Research limitations/implications

The investigation followed two major public-sector organisations in the UK: infrastructure offices of local authorities and estate offices of universities. Further research should be extended to other public-sector situations to enhance the model further.

Practical implications

Using this model, framework managers can drive project outcomes by applying task and contextual performance drivers in order to select the best suppliers at the procurement phase, and by adopting the client's organisational factors at both procurement and construction monitoring phases.

Social implications

The empirical evidence supports the use of frameworks by public sector policymakers as a key strategy to develop the performance drivers further and improve efficiency and quality outcomes.

Originality/value

The results will be of value to support the policy of public-sector works organisations contemplating using framework procurement for executing continuing construction activities.

Details

Built Environment Project and Asset Management, vol. 13 no. 6
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 27 August 2019

Rotimi Boluwatife Abidoye, Ma Junge, Terence Y.M. Lam, Tunbosun Biodun Oyedokun and Malvern Leonard Tipping

Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations…

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Abstract

Purpose

Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods.

Design/methodology/approach

An online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking.

Findings

The results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods.

Practical implications

There is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems.

Originality/value

This study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.

Article
Publication date: 4 July 2016

Terence Y.M. Lam

The UK Government construction strategy has a clear objective to maximise potential and value for construction and infrastructure projects. The purpose of this paper was to…

Abstract

Purpose

The UK Government construction strategy has a clear objective to maximise potential and value for construction and infrastructure projects. The purpose of this paper was to develop a performance outcome framework for the public-sector university client to identify the criteria for value against which construction consultants’ performance will be appraised for selection and monitoring purposes in outsourcing.

Design/methodology/approach

Multiple-case study method was used to examine the performance requirements of construction consultants, using three state universities having similar contexts in terms of organisation objectives and requirements on projects funded by the government.

Findings

Within the public-sector university environment, five performance outcomes are identified: time, cost, quality, innovations and working relationship with the client. These areas form a conceptual framework for measuring the performance of construction consultants.

Research limitations/implications

The performance outcome framework developed should be regarded as “conceptual”. University clients may have different organisation objectives and hence requirements for performance outcomes, which may further vary according to specific project situations. The framework should be adapted accordingly.

Practical implications

University clients and their professional advisors should specify the performance requirements under those five areas in tender documents for selection purposes and subsequently use them as key performance indicators to monitoring the consultant performance. Construction consultants should address these requirements in the tender proposals to add value to the project.

Originality value

There is a need to investigate what performance outcomes are required by the public-sector construction client. Based on the results of this research, frameworks and guidelines can be further developed for use by other public sectors, thus benefitting the wider public sector as a whole.

Details

Journal of Facilities Management, vol. 14 no. 3
Type: Research Article
ISSN: 1472-5967

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Article
Publication date: 8 October 2020

Terence Y.M. Lam

This research examines what key performance indicators (KPIs) and drivers should be applied at the post-contract phase of construction development to monitor and drive project…

Abstract

Purpose

This research examines what key performance indicators (KPIs) and drivers should be applied at the post-contract phase of construction development to monitor and drive project outcomes in sustainable design and construction. It supplements the previous research which focuses on pre-contract sustainable procurement of competent professionals. Consequently, optimal sustainability can be achieved for the overall sustainable development process.

Design/methodology/approach

A review of empirical work was conducted to consolidate the holistic aspects of sustainability that should be considered for design and construction and their project outcome KPI measures. Based on a country-wide questionnaire survey of the university estate sector in the UK, a quantitative hierarchical regression analysis was conducted to identify the performance drivers for those KPIs.

Findings

The empirical work review demonstrates that holistic sustainability for development can be measured by project outcome KPIs: economic sustainability by cost KPIs; functional, social and environmental sustainability by quality KPIs. The quantitative hierarchical regression analysis confirmed that these four aspects of sustainability could be significantly driven by task performance and contextual performance drivers, as supported by the job performance theory.

Research limitations/implications

The investigation was undertaken within the context of university estates forming a unique public sector in the UK. The findings form a baseline upon which further research can be conducted in other organisations in the wider public and private sectors. Ultimately, holistic sustainability can be fully driven by construction professionals to achieve government and corporate construction strategy for the benefits of sustainable built environment.

Practical implications

The findings inform project managers and construction professionals that they should apply clear, measurable cost and quality KPIs and focus on significant performance drivers in tandem to drive holistic sustainability for design and construction. Project staff should have a high commitment, technical expertise and experience, execute the project with proper design and management methods and provide a high level of trust and collaboration to the client. Clients, designers and contractors are key stakeholders in the development process so they should be consulted for forming the contract KPIs to monitor the sustainable project outcomes.

Social implications

The generalised results confirm that task and contextual performance drivers can be applied as project management tools for managing the professional team members to achieve sustainability deliverables in terms of KPIs. Such findings will enhance the government or corporate construction strategy for managing and achieving holistic sustainability for construction developments.

Originality/value

This research identifies post-contract performance monitoring measures (cost and quality KPIs as well as task and contextual performance drivers) that can be adopted for driving sustainable design and construction for sustainable development.

Details

Smart and Sustainable Built Environment, vol. 11 no. 3
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 30 October 2023

Terence Y.M. Lam, Taylah O. Hasell and Malvern L.D.B. Tipping

Referring to “behavioural finance” and “normative model” theories, this study explores the relative significance of behavioural heuristic biases in the investment decisions of…

Abstract

Purpose

Referring to “behavioural finance” and “normative model” theories, this study explores the relative significance of behavioural heuristic biases in the investment decisions of real estate investment trusts (REITs) when compared with the conventional normative decision factors, with an ultimate aim to identify the significant behavioural factors that should be avoided to ensure rational asset acquisitions and market efficiency.

Design/methodology/approach

A triangulation approach was adopted. Qualitative multiple case studies were conducted, with four cases selected from Australian and New Zealand REITs across the industry, to identify what normative and behavioural finance factors are involved in investment decisions. This formed the basis for the subsequent expert review survey to explore how significant the behavioural factors were manifested in the judgement when compared with the normative factors.

Findings

Three out of four theoretical behavioural factors manifested themselves in the investment decisions: investor sentiment, anchoring factors and overconfidence. The overall impact of these three behavioural factors was that they were as significant as normative factors in investment decisions. The heuristic availability of information was found to have no significant effect on experienced REIT fund managers.

Research limitations/implications

The findings were based on four multiple cases and an expert review survey of six frontline fund managers, which form a baseline upon which further research can be conducted to widen the scope of research to cover all REITs in Australasia so that the results can become more robust to benefit the entire market in the region.

Practical implications

As behavioural factors are significant in the decision-making process, REIT fund managers should raise awareness to avoid the significant behavioural factors identified, in particular investor sentiment, which was found to be the most significant one.

Originality/value

This study confirms the relative significance of behavioural factors in property investment decisions within the context of Australasian REITs and alerts fund managers to the ways they should follow to ensure rational investments and market efficiency. It also extends the scale of existing studies to cover not only Australia but also New Zealand for the benefit of the entire Australasian market.

Details

Property Management, vol. 42 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 2 September 2019

Terence Y.M. Lam

Outsourcing architectural and engineering services is a trend for public-sector construction projects. This study aims to examine what tender selection criteria should be…

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Abstract

Purpose

Outsourcing architectural and engineering services is a trend for public-sector construction projects. This study aims to examine what tender selection criteria should be considered when assessing the performance outcomes of consultants in relation to sustainable design, construction and management of buildings within the context of property and facilities management of existing building portfolios.

Design/methodology/approach

Combined qualitative-quantitative methods are adopted to examine the causal relationship between sustainable performance outcomes and influencing factors, using primary data collected from the estate offices of the UK universities, which form a unique public sector. The performance factors identified form the basis of selection criteria.

Findings

The qualitative multiple-case interviews identify economic, environmental, social and functional sustainability measures as the attributes of performance outcome. The quantitative hierarchical regression analysis generalises that sustainable performance outcomes can be significantly influenced by task and contextual performance factors.

Research limitations/implications

The scope of the study is limited to university estates. Further research should be conducted on other property and facilities management and construction-related organisations so that the sustainable procurement approach developed by this research can become more robust and applicable to the wider public sector.

Practical implications

At the tender stage, estate managers should adopt a sustainable procurement approach for selection of construction consultants: focussing on the significant task performance (project staff and execution approach) and contextual performance (collaborative consultant frameworks) influencing factors to optimise the project sustainability outcomes in relation to economic, environmental, social and functional values.

Originality/value

The sustainable procurement approach developed by this research benefits property and facilities management, as well as construction disciplines within the wider public sector, thus contributing to the government construction policy on promoting sustainability to the built environment.

Article
Publication date: 12 December 2022

Abood Khaled Alamoudi, Rotimi Boluwatife Abidoye and Terence Y.M. Lam

The smart sustainable cities (SSC) concept has a wide acknowledgement amongst governments and societies that deal with emerging technology and help in developing better urban…

Abstract

Purpose

The smart sustainable cities (SSC) concept has a wide acknowledgement amongst governments and societies that deal with emerging technology and help in developing better urban communities. However, the fact that citizens' participation (CP) is not adherent to the current policies and governance often boosts their aspirations of decision-making to become smart cities. This paper aims to identify SSC variables and, more importantly, rank, categorise and discuss the factors towards implementing SSC by engaging, empowering and enabling citizens to participate in the urban development of SSC.

Design/methodology/approach

A comprehensive literature review identified 38 factors in the CP process. Those factors were used to design an online questionnaire administered to the respondents. A total of 164 valid responses were collected. A two-stage statistical analysis was adopted. First, the Relative Importance Index (RII) was used to rank and prioritise the importance of the factors that affect the current policies and agenda. Second, factor analysis was utilised to categorise and group those factors.

Findings

This study founds four significant factors that help in implanting SSC: “knowledge of smart sustainable cities”, “awareness of smart sustainable cities”, “willingness of the citizens to participate” and “opinion on the current agenda of the government's role”.

Research limitations/implications

This study has a few limitations which can be considered in future studies. First, the response rate of the participant is relatively low (163), so sampling a larger segment will support the broader perception of the citizens.

Practical implications

The outcome of this paper underlines the need for the successful implementation of smart cities by adopting CP in the process of impacting policies and governance. Particularly, it identifies factors that help cities and policymakers in engaging CP in developing new policies and revising existing policies for promoting SSC.

Originality/value

There is a need to investigate the most critical factors that influence CP for implementing SSC. These factors have not been adequately examined in extant literature.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 9 August 2021

Terence Y.M. Lam and Calvin Chen

Higher education is now one of the biggest export sectors in the Australian economy. Purpose-built student accommodation (PBSA) has emerged as a new asset class in Australia, as…

Abstract

Purpose

Higher education is now one of the biggest export sectors in the Australian economy. Purpose-built student accommodation (PBSA) has emerged as a new asset class in Australia, as demanded by international and domestic students. As of 25 October 2020, there were still approximately 400,000 onshore international students and 135,000 offshore students despite the COVID pandemic. Various universities remain optimistic about their returns to Australia. Active PBSA investors remain focussed on the longer-term fundamentals and return of the Australian student market. This study aims to examine the investment potential of the PBSA sector in Sydney.

Design/methodology/approach

The triangulation method was used to confirm whether the literature findings on the high potential of PBSA investment apply to the context of the Sydney market. Qualitative expert interviews with two directors of major international real estate consulting firms, one private family trust investor and one director of a development company, were conducted in tandem with a qualitative multiple-case study of three major PBSAs via interviews with their building managers. These selected participants broadly covered the stakeholder settings across the industry.

Findings

A positive and solid trend of demand and rental growth was confirmed by the expert interviews and the performance of PBSA cases in Sydney, as supported by the growing number of international students in the longer term. To enhance the rental growth, and hence total returns, self-contained studio-type accommodation with quality facilities and social support should be provided, and operators should consistently track the needs of students and provide them with a better living experience.

Research limitations/implications

PBSA is a new asset class and there have been limited supply and sale transactions to enable detailed examination of the capital growth, so this research has focussed on rental growth. When the PBSA market becomes more mature, further research should be conducted to analyse the strength of this emerging investment’s capital growth and total returns.

Practical implications

In the longer term, PBSA is a low-risk property investment with potentially high returns in Sydney. Institutional investors and real estate consultants can make informed decisions to build up the property portfolio. PBSA is capital-intensive and has low liquidity, so this type of investment is particularly suitable for institutional investors.

Social implications

Universities should provide more suitable PBSA accommodations by themselves or partnerships with private developers. Planning authorities should include more PBSA residential uses in the land zoning plan. This is to provide more affordable accommodations to meet the demand of cost-sensitive students.

Originality/value

This research confirms PBSA is a low-risk investment with potentially high returns within the context of the Sydney market. The findings will benefit the major stakeholders of PBSA in their investment decisions, including investors, developers and universities.

Details

International Journal of Housing Markets and Analysis, vol. 15 no. 4
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 6 November 2017

Terence Y.M. Lam and Njavwa Siwingwa

Most organisations do not have established guidelines for the estimation and management of contingency funds. The purpose of this paper is to identify the risk factors at the…

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Abstract

Purpose

Most organisations do not have established guidelines for the estimation and management of contingency funds. The purpose of this paper is to identify the risk factors at the construction phase causing project cost overruns, and a reliable method for the estimation of contingency sum is established.

Design/methodology/approach

Combined qualitative–quantitative exploratory methods were used. Qualitative interviews were conducted with five expert practitioners working in a Public Works Department in Zambia to determine how contingency sum is estimated and to explore what risk factors should be considered. Quantitative regression used cost and risk data collected from 30 recently completed building and refurbishment projects.

Findings

The qualitative study indicated that the project budget overruns constitute a major issue. This finding is in line with the paired-samples t-test results which show that the difference between the total variations and the initial contingency sum tends to be significant. The regression analysis proved that the contingency sum was positively correlated to the estimated contract sum. The qualitative interview results and Pearson correlation analysis also showed that contingency sum and project complexity tend to have a significant correlation. The research also demonstrates that the type of works is not a direct significant factor.

Research limitations/implications

Because the projects used for the study were relatively short, duration of the project and economic factor of tax rate, exchange rate and inflation rate were not examined in the multiple regression analysis. Further studies should be conducted on longer projects to test out whether these risk factors are significant in influencing the project contingency.

Practical implications

The results demonstrate that the multiple regression method can be applied as a reliable tool to predict contingency sums. Accurate contingency sums and project budget estimates benefit construction clients and their project managers. Individual project conditions should be carefully examined when assessing the contingency.

Originality/value

This research establishes a reliable regression method for the assessment of the contingency for the pre-tender estimate which has significant impact on the project feasibility and cost control, using related risk factors involved in construction contingency and client’s contingency.

Details

Journal of Financial Management of Property and Construction, vol. 22 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

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