Framework for Designing Project Delivery and Contract Strategy in Chinese Construction Industry Based on Value‐Added Analysis

Ding, Jianrui; Wang, Na; Hu, Leichuang

doi:10.1155/2018/5810357

Cited by 16 publications

(15 citation statements)

References 37 publications

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“…From this perspective, project delivery methods are products of design, not simple selection. Besides, it is important to match the appropriate contract strategy with the right project delivery option when selecting and implementing any project delivery option, since PDM cannot function independently without the support of reasonable contract strategies [9].…”

Section: Project Delivery Methods and Epcmentioning

confidence: 99%

Study on Added-Value Sharing Ratio of Large EPC Hydropower Project Based on Target Cost Contract: A Perspective from China

Ding

Chen

et al. 2018

Sustainability

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Engineering, procurement, and construction (EPC) has been applied in China's hydropower projects for its value-added advantages compared with traditional project delivery systems in theory. However, the actual performance of large EPC hydropower projects has been challenged by the complexity of the stakeholders' interest demands and conflicts. The increasing use of target cost contracts (TCC) in the construction industry has provided a pain/gain share mechanism for the owners to incentivize contractors to complete projects within cost budgets. The added-value sharing ratio is the core element of TCC, and it predetermines how much proportion of savings the contractor can get paid if the actual cost is below the target cost, and how much proportion of overspend the contractor has to pay if the actual cost is higher than the target cost. In this paper, we consider the added-value sharing ratio under the framework of TCC based on the principal-agent theory, and look at how the added-value sharing ratio is influenced by various factors and how it affects the owner and the contractor in large EPC hydropower projects. Determination of the added-value sharing ratio in both discrete and continuous conditions are discussed, respectively. It is found that the added-value sharing ratio is relatively explicit in the discrete case, while the optimal added-value sharing model in the continuous case is more complex, which can be used to analyze the relationship between the added-value sharing ratio and the key influencing factors. Our research conclusions can provide both theoretical guidance and practical suggestions to contract design in the implementation of EPC hydropower projects, to some extent.

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Section: Project Delivery Methods and Epcmentioning

confidence: 99%

Study on Added-Value Sharing Ratio of Large EPC Hydropower Project Based on Target Cost Contract: A Perspective from China

Ding

Chen

et al. 2018

Sustainability

Self Cite

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“…This is to keep off the delay faced by traditional projects. From a construction industry perspective, every project should be examined on a case-by-case basis to identify the most suitable project delivery method (Ding et al, 2018).…”

Section: A Coordination Challenges In Design and Build (Db) Projectsmentioning

confidence: 99%

Critical Coordination Factors Affecting Design and Build Projects

Ohag

Nawawi²,

Muhammad³

et al. 2023

IJEAS

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The design and build projects (DB) have increased in numbers in the last few decades. DB method is becoming more popular than the traditional method in Malaysia, especially in national projects.However, design-build projects may suffer from a significant number of problems, such as conflicts between the project parties (designers, contractors, and owners), resulting in poor performance and poor quality. One common cause of project failure of conventional projects is poor coordination and communication process. It has been found that no such study has been found to identify the coordination factors that might affect the project’s success. To fill this gap, this research aims to establish a framework of coordination factors affecting DB projects’ performance in Malaysia. This study uses a mixed methodology approach to identify critical coordination factors by a comprehensive review of the literature. The identified factors were categorized, ranked, and prioritized according to their influence on project performance using a quantitative approach. It is found that scheduling and planning, human resource coordination, documentation & records coordination, contract implementation coordination, value engineering and quality assurance, technical coordination, design coordination, management coordination, and external coordination are the significant factors of coordination that may affect the performance of construction projects. This study provides empirical evidence by correlating the identified coordination factors with DB project performance. Identification of coordination factors will help in enhancing and improving the performance of design and build projects.

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“…According to Construction Industry Institute (CII), there are three basic project delivery methods (PDMs) adopted in construction projects, which are Design-Bid-Build (DBB), Design and Build (DB) and Construction Management at Risk (CMR), while other PDM are variants or mixtures of these three methods (Sanvido and Konchar, 1998). In China, most of the construction projects adopt DBB mode, include common project types, such as building and municipal construction (Ding et al, 2014;Jia and Ding, 2018;Ding et al, 2022). Since all the data in this study collected from China, the conclusion is drawn under DBB mode by default.…”

Section: Data Collectionmentioning

confidence: 99%

Differential effects of contextual factors on promotive and prohibitive voice in construction projects: a multiteam system perspective

Wang

Jia²,

Jiang³

et al. 2022

ECAM

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PurposeDespite the documented benefits of voice behavior for projects, little is known about antecedents of voice behavior in the project context, especially construction projects. Against this background, adopting a multi-team system perspective, this study attempts to investigate antecedents of team voice behavior from a contextual view.Design/methodology/approachThis study identifies and examines six factors that influence team voice behavior. Specifically, project urgency, project temporality, and project complexity are identified from the project nature perspective. Satisfaction, trust, and commitment are generated from the relationship quality approach. Then, data from completed construction projects in China was collected to verify the effectiveness of these factors. Besides, the partial least squares structural equation modeling (PLS-SEM) technique was used in this study.FindingsAll six factors are found to be significant predictors of promotive team voice behavior. For prohibitive team voice behavior, only project complexity and project commitment make significant effects. Further, the differential effects of these factors on two types of voice behavior are revealed.Originality/valueThis study contributes to the literature on voice behavior in the project context, especially construction projects consisting of multiple teams. Also, this research enriches our knowledge on antecedents of team voice behavior in construction projects and thus affords practical implications to foster voice behavior.

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Framework for Designing Project Delivery and Contract Strategy in Chinese Construction Industry Based on Value‐Added Analysis

Cited by 16 publications

References 37 publications

Study on Added-Value Sharing Ratio of Large EPC Hydropower Project Based on Target Cost Contract: A Perspective from China

Study on Added-Value Sharing Ratio of Large EPC Hydropower Project Based on Target Cost Contract: A Perspective from China

Critical Coordination Factors Affecting Design and Build Projects

Differential effects of contextual factors on promotive and prohibitive voice in construction projects: a multiteam system perspective

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