Optimization strategies to eliminate interface conflicts in complex supply chains of construction projects

Abstract

The supply chains of complex construction projects are characterized by multi-disciplinary participants, adversarial short-term relationships and fragmentations in project delivery procedures. Multi-disciplinary participants tend to make deci­sions on project activities based on their own objectives and value systems independently with little regard of holistic project performance. The lack of common values results in a limited understanding of how behaviors of one discipline impact on the related disciplines. This has led to tons of interface conflicts which ultimately affect project effectiveness. This paper investi­gates this problem by discussing Interface Value for the core players to understand the value-driven behaviors on the boundaries among owner and multiple prime contractors in complex construction projects. Two types of interface conflicts are recognized and defined. Value Optimization Strategy is proposed under status quo delivery methods by adjusting and reallocating interface responsibilities between related contractors. Improvements of procurement procedures are the key solutions to interface con­flicts. Prospects of integrated project delivery (IPD) in eliminating interface conflicts are also discussed. The paper concludes that Value Optimization Strategy and IPD-based approach are expected to eliminate interface conflicts of complex construction projects, integrate the complex supply chain and lower the potential risks for project delivery delay and cost overrun.

Identification of Delay Causing Actor in the Indian Real Estate Project: an AHP-Based Approach

“…According to , specifications of the product are determined by its consumer, and the same influence poses to be a significant impact on the activities being conducted at construction sites. Such factors lead to occurrence of short-term relationships in the construction industry between a client and a contractor (Dubois & Gadde, 2002;Fearne & Fowler, 2006;Qu et al, 2011;Ardeshir et al, 2014;Janipha et al, 2015;Cerchione & Esposito, 2016;Ali Kazmi, 2017;Ju et al, 2017) eventually making the price quoted by the contractor the critical factor for evaluation of its bid. It is essential to mention that losses incur to the construction industry due to cost overrun, disputes, claim settlement and the primary reason for occurrence of disputes and disruptions, and such situations are commonly observed due to a lack of accurate information visibility (Mahamid, 2017) and this contributes to the trend of lower profit margins and reduced productivity in this sector.…”

“…Client induced delays, i.e., delayed availability drawings and specifications, frequent changes and inadequate site information result in counterclaims from both the main contractors and sub-contractors and lead to arbitration and substantial financial repercussions (Mitkus & Mitkus, 2014;Ju et al, 2017;Mahamid, 2017). Contractor induced delays can be attributed to poor project management, lack of planning and poor financial management (Love et al, 2011;Barman & Charoenngam, 2017;Komurlu & Arditi, 2017).…”

Interorganizational relationships in the Brazilian construction industry supply chain

“…The production chain has a fragmented nature (Akintoye et al, 2000;Azambuja & O'Brien, 2008;Isatto et al, 2015). The manufacturing projects are complex and marked by participants with knowledge in diverse areas (Ju et al, 2017). The companies present weak organizational performance (Meng, 2012;Jeong et al, 2013;Othman et al, 2015;Ju et al, 2017;Xu & Zhao, 2017), especially in terms of time, cost, and quality (Meng, 2012;Xu & Zhao, 2017).…”

“…The manufacturing projects are complex and marked by participants with knowledge in diverse areas (Ju et al, 2017). The companies present weak organizational performance (Meng, 2012;Jeong et al, 2013;Othman et al, 2015;Ju et al, 2017;Xu & Zhao, 2017), especially in terms of time, cost, and quality (Meng, 2012;Xu & Zhao, 2017). Vrijhoef & Koskela (2000) stress that the supply chain of the construction industry is: (i) convergent: the supplies converge to the construction site; (ii) temporary: the organizations that are formed for the execution of the unique venture do not usually persist for the next venture and can assume a different shape than before; and (iii) make-to-order: each project creates a unique product with little repetition.…”

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