1
Mediators require a range of skills and techniques in order to execute the
functions applied by mediators. These skills are inherent, learned, and
intuitive; or may be acquired and developed through education, training and
experience. Each mediation skill supports a function and can contribute to
more than one function. Mediation skills can be inherent however, these
skills can also be learned, practiced and developed and can be measured
and assessed and applied with a certain degree of objectivity (Boulle &
Rycroft, 1997:139-140; Brown & Marriott, 1993: 251).
4.1 Communication
“The most important thing in communication is to hear what isnʼt being
said” ( Drucker, 2008: online).
Moore (1986: 143) suggests that communication is central to the
negotiation process.
Conflict results from poor communication, and will invariably inhibit the ADR
negotiation process (Van Zyl, Verster & Ramabodu(2010: 6).
The science and art of communication play an important role in the ADR
process as good communication skills support constructive negotiations.
Poor communication skills create a negative cycle in which disputes are
difficult to resolve (Van Zyl et al., (2010: 6).
Unproductive communication may lead to a breakdown in
communication whereas productive communication adds value to the
negotiation process.
Povey (2005: 2) indicates that mediators in the industry rely on their
communication skills to facilitate the mediation process.
Contrary to the above, Moore (1986: 143) suggests that the extent, form
and quality of communication contribute to the successful outcomes of
negotiation.
4.2 Negotiation
ADR facilitators need a sound theoretical and practical knowledge of
negotiation skills which is fundamental to all consensual ADR activity
(Brown & Marriott, 1993: 88; Anstey, 1993: 12). Due to the lack of
negotiation skills education, relatively little is known of the science and art
of the subject (Anstey, 1993:12).
In support of the above, Brown & Marriott (1993: 88) suggest that
learning negotiation skills will improve on any existing inherent skills.
Negotiation is a skill that should be applied in all methods of ADR.
5. ATTRIBUTES
The inherent attributes may enhance the effectiveness of mediation skills to
create more satisfactory end results. The psychological element of
mediation should not be disregarded as it is the process of building trust
between parties, creating a peaceful atmosphere which contributes to
positive negotiations (Moore, 1986:124).
5.1 Listening
Trollip (1991: 47) suggests it is the act of repeatedly hearing and listening!
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Effective listening is also vital to the communication process and
addresses the following important factors:
Allows the parties to speak without interruptions
Develops a better understanding of the concerns based on both the
verbal and non-verbal message.
Helps to understand and summarise concerns
Creates a situation where the mediator can absorb the message
and integrate it into an extension of the negotiation process. (Boulle
& Rycroft 1997: 153 – 154).
By listening effectively the mediator is able to better understand the
concerns and needs of the parties and guide them toward consensual
settlement.
5.2 Empathy
Empathy refers to comprehension the professional has on the thoughts,
perceptions and feelings of the parties and responding to them in a
sympathetic way (Boulle & Rycroft, 1997: 78-79).
Some professionals may have become so business focused that they
find it difficult to relate with empathy. In view of the above, it is suggested
that the mediator acknowledge and validate understanding and
appreciation for the feelings and ideas of all parties to the dispute.
Through experience, the practicing professional may develop a good
understanding of the more general types of disputes which occur in a
project and therefore naturally have empathy when relating to these.
6. CONTRACT LAW
The JBCC Dispute Settlement Clause 40, 2007 edition 5.0 provides for
variation in the application of dispute resolution in the Construction industry.
Furthermore, the General Conditions of Contract (2004) Clause 58 also
supports this stance (cited in McKenzie & McKenzie, 2009: 351-352).
7. RESEARCH METHODOLOGY
A literature review was conducted to determine the requirements of
professionals facilitating ADR in the South African construction industry.
The Departments of Quantity Surveying of three universities in South
Africa were approached to discuss their syllabi upon which, the tertiary
levels were determined.
Based on the findings of the literature review, a questionnaire survey
was conducted on practicing Quantity Surveyors to determine the
knowledge and awareness levels of the ADR requirements of professionals
in the industry, how they rate the importance of these requirements and
what experience they have achieved in this regard. Thirty questionnaires
were distributed with a 76% response. The 23 respondents were divided
into under 30 years, 30 -40 years and over 40years age groups, after which
the results were analysed.
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The respondents were divided into age groups to compare recent entrants
to the industry to the more experienced practitioners.
Respondents were required to rate their importance,
awareness/knowledge and experience levels on the following ADR
elements:
The Four Cs as discussed in paragraph 2,
ADR methods as discussed in paragraph 3,
Facilitation skills and techniques as discussed in paragraph 4,
Attributes as discussed in paragraph 5 and
The JBCC Dispute Clause 40 as discussed in paragraph 6.
The importance and awareness/knowledge ratings will reflect the
education and training levels in as much as, if the importance rating is high
with a lower knowledge rating, this may imply that the particular element in
the syllabi may need to be reviewed.
Experience level ratings were requested because if ADR was not
addressed in the initial education and training professionals encountered,
experience combined with knowledge develops competence which relates
to knowledge.
8. FINDINGS
The responding tertiary institutions include all the ADR elements in their
syllabi however; attributes and facilitation skills and techniques are only
addressed superficially.
Young professionals in the industry rate the importance of the
requirements for ADR as high although their knowledge ratings are slightly
lower however; the experience levels are somewhat lower. The lower
experience levels are self explanatory as these young professionals are
recent entrants to the industry.
Figure 1: Importance, knowledge and experience ratings for under 30 year
age group
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The 30-40 year age group have slightly lower ratings for both importance
and knowledge than the under 30 year age group with slightly higher
experience levels. The experience ratings can be expected to be slightly
higher than that of the under 30 year age group.
Figure 2: Importance, knowledge and experience ratings for 30 -40 years
age group
The over 40 year age group have high importance, knowledge and
experience ratings. Although ADR was not as prominent at the time of
these professionalsʼ initial education and training, experience gained
develops knowledge and the importance of ADR is realised.
Figure 3: Importance, knowledge and experience ratings for over 40 years
age group
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Figure 4: Average importance, knowledge and experience ratings for all
respondents
Apart from the attributes, the variance between importance, knowledge and
experience ratings have remained constant throughout the analysis.
Professionals in the South African construction industry have an above
average knowledge of the ADR concepts
In support of Poveyʼs research which indicates that professionals rely on
their communication skills for effective facilitation, communication and
negotiation skills have high ratings in this study. This result contradicts the
literature review suggestion by Anstey (1993) that there is a lack of
negotiation skills education however the communication and negotiation
skills may be inherent and learned through experience.
9. CONCLUSION
The higher ratings found in the analysis of the under 30 years age group
indicates that education and training needs are being addressed in the
syllabi of tertiary education however, the variance between the importance
and knowledge ratings may imply that the depth of the subject may need to
be reviewed.
The lower ratings in the 30-40 age group may be due to the fact that
ADR was not as prominent at the time these professionals received their
initial education and training. More emphasis has been placed on the Four
Cs in the past decade (Loots, 1991), thus explaining the lower experience
ratings.
The variance of the over 40 Knowledge and importance ratings may not be
as great due to the fact that knowledge combined with experience develops
competence, which translates to knowledge.
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Although the knowledge component of ADR is addressed in the syllabi,
the depth of the training may be questionable, thus creating an awareness
of the importance without necessarily fully understanding the subject
matter.
10. RECCOMMENDATIONS
It is recommended that tertiary institutions strengthen their syllabi in terms
of attributes, skills and techniques placing emphasis on negotiation and
communication skills to enhance negotiation skills which is an important
element in all methods of ADR.
Institutions may consider distributing informative brochures on ADR
developments.
Opportunities may be provided by institutions in the form of
development courses for more experienced professionals to update their
knowledge of ADR as a method of Continuous Professional Development.
11. REFERENCES
Anstey,M. 1993.The negotiation process: techniques of negotiation and
dispute resolution. In: Pretorius, P. (ed.). Dispute Resolution. Cape
Town: Juta & Co., p. 12-38.
Bevan, A. 1992. Alternative Dispute Resolution. London. Sweet &
Maxwel. Boulle, L. & Rycroft, A. 1997. MEDIATION Principles Process
Practice.
Durban: Butterworths.
Brown, H.J. & Marriott, A.L. 1993. ADR Principles and Practice. London:
Sweet & Maxwell.
Business Law, 2000. 2nd ed. Durban: Butterworths.
Butler, D. & Finsen, E. 1993. Arbitration in South Africa Law and
Practice.Cape Town: Juta & Co, Ltd.
Drucker.P.F.2001.Quotes.[online].[s.l.]:[s.n.].Availablefrom<http://www.brain
yquote.com/quotes/authors/p/peter_drucker_2.html> [Accessed 5 June,
2011].
Finsen, E. 2005. The building contract: A commentary on the
JBCCAgreements. 2nd ed. Cape Town: Juta.
Joint Building Contracts Committee (JBCC). 2005. Adjudication Rules: for
use with the JBCC Principal Building Agreement and Nominated /
Selected Subcontract Agreement. Ed. 4.1, cl. 1.1 3.2, 6.0-7.0.
Houghton:
Joint Building Contracts Committee Inc. (Series 2000 Code 2019), March.
Joint Building Contracts Committee. 2007. Principal building
agreement.JBCC Series 2000 Edition 5.0 Code 2101, Johannesburg:
JBCC.
Loots, P.C. 1991. Altrnative methods of dispute resolution in the
construction industry.SA Builder,p 8-13, May.
Mc Kenzie, H. S. & McKenzie, S.D. (2009). McKenzieʼs Law of building
and engineering contracts and arbitration. 6th ed.Cape Town: Juta.
Moore, C.W. 1986. The Mediation Process: Practical strategies for
resolving conflict. San Francisco: Jossey – Bass.
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Education and training in Alternate Dispute Resolution JHB, South Africa
in a South African context ISBN: 978-0-86970-713-5
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Povey, A. 2005. An investigation into the mediation of disputes in the South
African construction industry. Journal of the South African institution of
Civil Engineering, 47 (1),pp.2-7, March.
Pretorius, P.1993.Dispute Resolution. (ed.)Cape Town:Juta.
South Africa. 2010. The Arbitration Act, Act 4 of 2010.
Pretoria: Government printer.
Tiruneh, G.G., Verster, J.J.P. and Kotzé, B.G. 2007. A study on the
application of alternative dispute resolution (ADR) methods in South
Africa. Proceedings of Paciffic Association of Quantity Surveyors (PAQS)
2007 Congress: Construction from a different perspective. Auckland,
New Zealand, June.
Trollip,A.T.1991. Alternative Dispute Resolution. Durban: Butterworths.
Verster, J.J.P. 2006. Managing cost, contracts, communication and claims:
A Quantity Surveying perspective on future opportunities. In:
Proceedings
of 1st ICEC & IPMA Global Congress on Project Management, 5th
World congress on Cost Engineering, Project Management and Quantity
Surveying. Ljubljana, Slovenia, 23-26 April.
Verster, J.J.P. and Van Zyl, C.H., 2007. Managing differences and
disputes: A search for an effective and efficient construction dispute
resolution method. In: Proceedings of Paciffic Association of Quantity
Surveyors (PAQS) 2007 Congress: Construction from a different
perspective. Auckland, New Zealand, June.
Van Zyl, C.H., Verster, J.J.P. and Ramabodu, M.S. 2010. Dispute
Resolution Alternatives: Problems, Preference and Process. Proceedings
of the Construction, Building and Real Estate Research Conference
(COBRA 2010) of the Royal Institution of Chartered Surveyors (RICS).
Paris, France. 2-3 September.
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ASOCSA2011-07
Culture Change in Construction: A
Novel Approach for Achieving Lean
Principles Objectives in Construction
Projects
Ayman Ahmed Ezzat Othman
Associate Professor
Architectural Engineering Department, Faculty of Engineering,
The British University in Egypt
E-mail:
[email protected], Tel: +(202) 26 89 00 00
ABSTRACT
Purpose of this paper: Unlike other industries that have greatly improved
their performance and level of quality through applying lean production
principles, the majority of design and construction firms are reluctant to
change their culture towards accomplishing lean construction objectives.
This paper aims to investigate the role of culture change as an innovative
approach for achieving lean principles objectives in construction projects.
Methodology: To achieve this aim, a research methodology is designed to
achieve four objectives. Firstly, literature review is used to understand the
fundamentals of lean production and organisational culture change.
Secondly, global case studies of successful firms benefited from culture
change in improving their performance are collected and analysed
qualitatively. Thirdly, developing an innovation framework to build lean
culture in design and construction firms as an approach for achieving Lean
principles objectives in construction projects. Finally, summarising research
conclusions and recommendations for decision makers and construction
professionals.
Findings: Changing organisational culture is essential for successful
achievement of Lean principles objectives in construction projects.
Obstacles of culture change in design and construction firms have to be
overcome through well planned and managed change programmes.
Research implications: This research promotes planned culture change
in design and construction firms to facilitate the achievement of lean
principles objectives which ultimately improve the performance of
construction industry at organisational and project levels.
Practical implications: The adoption of the lean culture framework
developed by this research will facilitate building lean culture in design and
construction firms which ultimately achieve Lean principles objectives in
construction projects.
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Value: This research adds valuable contribution the original body of
knowledge through identifying the obstacles of successful implementation
of lean principles in construction. The research developed an innovative
framework aimed to build lean culture in design and construction firms as a
novel approach towards achieving lean principles objectives in construction
projects, which eventually improve the performance of the construction
industry.
Keywords: Culture Change, Lean Production, Lean Culture, Design and
Construction Firms, People, Construction Projects.
1 INTRODUCTION
For decades, the construction industry is known for its chronic problems of
fragmentation, low productivity, time and cost over-runs, poor safety,
inferior working conditions and insufficient quality. A number of visions,
strategies, methodologies and action plans have been developed to
alleviate these problems. They included for instance: industrialization,
computer integrated construction, constructability, partnership, robotized
and automated construction. In spite of these solutions, the performance of
the construction industry is considered low if compared to other industries
(Latham, 1994; Koskela, 1992& 1997; Egan, 1998; Othman, 2010). Great
improvements in performance have been observed in manufacturing,
especially lean automobile industry which uses half of manufacturing
space, half of human effort in the factory, half of product development time
and half of investments in tools (Koskela, 2004). These improvements
were the result of the development and implementation of a new
production philosophy called “Lean Production”. The primary goal of the
new philosophy is to avoid waste of time, money, equipment, etc. and
improving value through employing and combining existing partial
approaches such as Just in Time (JIT), Total Quality Management (TQM),
time-based competition and concurrent engineering (Melles and Wamelink,
1993). Adopting the “Lean Production” philosophy is expected to bring a
revolutionary change to the way of work in every industry. As a result, in
construction, lean production has been adopted relatively quickly by
contracting companies which are keen to reduce waste in their construction
projects. Even if only a small fraction of the gains observed in
manufacturing were realised in construction, the incentive to apply these
concepts would be tremendous (Emmitt et al., 2004). In contrast, most
companies that get on applying lean principles rapidly become frustrated
with kaizen events and isolated improvement projects which produced
great short-term results but have no sustainability. These companies are
searching for something more which is the culture of continuous
improvement with its philosophy, processes, and people aligned to
cultivate problem solving. No doubt, changing the culture, values, believes
and attitudes of employees are a difficult task. What might be considered a
lean operation one day could slide back into the old ways of doing things
overnight. It becomes apparent that the only way to build a lean culture is
to change the culture of workplace and get buy in from every employee at
all levels of the organisation. Without developing a lean culture, a company
will not get all the traction it needs to reach the full potential of lean
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(Velaction, 2010). This paper aims to investigate the role of culture change
in design and construction firms as a novel approach for successful
achievement of lean principles objectives in construction projects. A
research methodology is designed to achieve this aim. Firstly, literature
review is used to build a comprehensive background about lean production
philosophy and principles, organisational culture change, lean culture
components, skills and behaviours required to build and manage a lean
culture, developing and maintaining committed leaders and team members
who sustain and improve lean culture. Secondly, global case studies of
successful firms benefited from culture change in improving their
performance are collected and analysed qualitatively. Thirdly, an innovative
framework to facilitate the integration and application of lean culture in
design and construction firms is developed. Finally, research conclusions
and recommendations for decision makers and construction professionals
are outlined.
2 LEAN PRODUCTION
2.1 Background and Concept Development
For many, Lean is the set of "tools" that assist in the identification and
steady elimination of waste. As waste is eliminated quality improves while
production time and cost are reduced. In fact, lean production does not
include really new principles of management techniques. It only combines
existing principles in a new day. The primary goal of lean production is to
avoid waste of time, inventory, space, labour, equipment and money. What
has become known as "Lean Production" is largely derivatived from the
Toyota Production System (TPS) which aimed to produce value, as defined
by the customer, without producing waste. At Toyota, TPS is only part of a
broader business philosophy known as the Toyota Way. Originally, the
Toyota family owned a loom manufacturing business. Their initial
innovation was to power the looms with a steam engine and then provided
a system that would automatically shut down the loom when the thread
broke. This helped eliminate the waste that would occur if the loom
continued to run and produced defective material. This principle of
automation was the first one of the two pillars of TPS. Building on the
financial success of the loom business, Toyota Motor Company was
launched in the late 1920's. In 1950, Toyota's chairman visited the United
States and saw that Toyota's productivity was lagging desperately behind
Ford and GM. Upon his return to Japan, he challenged Taiichi Ohno,
Toyota's plant engineer, to meet the U.S. level of productivity within three
years; this effort would require a ten-time improvement in productivity. In
spite of the challenges that faced Toyota of capital availability, supply
chain, or infrastructure to support that level of productivity and low demand
of cars in Japan, the second pillar of TPS developed JIT delivery where
items would be put into production when there was an order. JIT helped
Toyota to minimize inventories of finished goods and avoid storing raw
materials (Melles and Wamelink, 1993; Tapping, 2002). Later on, Toyota
has identified seven types of waste that have to be eliminated, see table
(1).
Table (1) Toyotaʼs 7 Types of Waste (Kotelnikov, 2001)
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1 Overproducti Producing items for which there
on is no order resulting in
overstaffing, storage or
transportation
2 Waiting Workers idled watching a
machine or waiting for material,
equipment, approvals or
directions
3 Unnecessary Moving work-in-process or
Transport inventory
4 Over or Taking unneeded steps to
incorrect achieve an outcome,
processing inefficiencies due to poor tools
or design; procuring to higher
standard than required
5 Excess Raw material, WIP or finished
Inventory goods, increasing lead time,
obsolescence, damaged goods,
storage, transportation; also
hides production and delivery
problems
6 Unnecessary Wasted employee motion –
movement looking for, reaching
for, stacking parts or tools.
Walking is waste
7 Defects Production of defective parts or
correction. Repair, rework,
Scrap and inspection
TPS is only part of the "Toyota Way" – the business philosophy that
provides the context for TPS. Liker (2003) identified the following 14
principles of what he calls "The Toyota Way":
Table (2) Toyotaʼs Way Principles (Liker, 2003)
1 Base management on a long-term philosophy,
even at the expense of short-term financial
goals
2 Create continuous process flow to bring
problems to the surface
3 Use "pull" systems to avoid overproduction
4 Level out the workload
5 Build a culture of stopping to fix problems, to get
quality right the first time
6 Standardized tasks are the foundation for
continuous improvement and employee
empowerment
7 Use visual control so no problems are hidden
8 Use only reliable, thoroughly tested technology
that serves employees and process
9 Grow leaders who thoroughly understand the
work, live the philosophy, and teach it to others
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10 Develop exceptional people and teams who
follow company's Philosophy
11 Respect extended network of partners and
suppliers by challenging them and helping them
improve
12 Go see for yourself to thoroughly understand
the situation
13 Make decisions slowly by consensus,
thoroughly considering all options; implement
decisions rapidly
14 Become a learning organisation
through relentless reflection and
continuous
improvement
The increasing awareness of eliminating waste and adding value energized
the development of other approaches such as TQM, time based
competition, value based management, process redesign, world class
manufacturing and concurrent engineering. Analysis showed that these
management approaches has a common core, but view this from more or
less different angles. The new production philosophy is emerging through
generalization of these partial approaches (Schonberger 1990; Plossl
1991). The new production philosophy has already had a profound impact
in such industries as car manufacturing and electronics. The application of
the approach has also diffused to fields like customized production,
services, administration, product development and construction (Koskela,
1997).
2.2 Benefits and Methods of Lean Production
The application of a lean production system would allow companies to
achieve the following benefits:
Reducing waste by 80% and production cost by 50%.
Decreasing manufacturing cycle times by 50%.
Reducing labour by 50% while maintaining or increasing
throughput.
Reducing inventory by 80% while increasing customer service
levels.
Increasing capacity in current facilities by 50%.
Improving quality and increasing profits.
Increasing system flexibility in reacting to changes in requirements.
Creating better strategic focus.
Improving cash flow through increasing shipping and billing
frequencies.
The most important methods used to attain lean production are: JIT, TQM,
time based competition, concurrent engineering, process redesign (or
reengineering), value based management, visual management, total
productive maintenance and employee involvement (Kotelnikov, 2001).
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3 APPLICATION OF LEAN PRINCIPLES IN CONSTRUCTION
Lean construction is the continuous process of eliminating waste, meeting
or exceeding all customer requirements, focusing on the entire value
stream and pursuing perfection in the execution of construction project.
This definition includes many fundamental aspects of a lean philosophy. It
is a philosophy that requires a continuous improvement effort that is
focused on a value stream in terms of the needs of the customer and
improvement through eliminating waste in the process (Construction
Industry Institute, 2011). Towards creating lean workplace, a set of lean
principles and best practices could be applied in construction including:
Customer focus
Culture/people
Workplace standardisation
Waste elimination
Continuous improvement / built-in-quality
Although the lean concepts have been brought to the construction industry
in a number of countries including, Australia, Brazil, Denmark, Ecuador,
Finland, Peru, UK, USA and Venezuela (Ballard and Howell, 2003),
surveys in the UK carried out by Common et al. (2000) concluded that the
construction industry in general has been slow in taking lean concepts.
Becoming lean involves the entire company, and it doesn't happen
overnight. Lean cannot be reduced to a set of rules or tools. It must be
approached as a system of thinking and behaviour that is shared
throughout the value stream. It needs a comprehensive commitment to
long term improvements (Hunting, 2010). It amounts to a cultural change
for the company. Due its nature, construction is not a simple deterministic
system. Lean principles must be understood and applied in a context and
require a comprehensive understanding of a complex, interacting and
uncertain construction system (Construction Industry Institute, 2011).
Kenny and florida (1993) stated that although lean production paradigm
has much to offer, the success of its implementation depends upon the
organisational environment and culture within which is developed. Lean
thinking recognises that people are a key factor for improving processes
and the way they view their work is important. Successful development of
lean construction requires strategies and methodologies based upon social
constructivism (Garnett, 1999).
4 Lean Culture and Organisational Change
Culture is the set of shared values, beliefs, behaviours, goals, attitudes,
practices that characterizes an institution, organisation, society or group
(Wikipedia, 2011). From a business point of view, culture is the sum of
peoplesʼ habits related to how they get their work done. People talk about
their companyʼs culture all the time as a reason why they can or cannot do
something. Organisationʼs culture is enabling or inhibiting change or
resistance. Annual reports proudly refer to company culture as an
invaluable asset (Mann, 2005). Lean construction cannot be accomplished
without getting the people ready to apply lean philosophy through building
lean culture. There are different types of organisational changes including:
strategic change, structural change, process-oriented change and people-
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centred change. The later is focused on culture change in organisations.
People-centred change aims to change the attitudes, behaviours, skills, or
performance of employees. Changing people-centred processes involves
communicating, motivating, leading, and interacting within groups. This
focus may entail changing how problems are identified and solved, the way
employees learn new skills, and how employees perceive themselves, their
jobs and the organisation. Some people-centred changes may involve only
incremental changes or small improvements in a process. For example,
many organisations undergo leadership training that teaches managers
how to communicate more openly with employees. Other programs may
concentrate on team processes by teaching both managers and
employees to work together more effectively to solve problems (Benowitz,
2001).Towards achieving lean principles objectives in design and
construction firms, people culture has to changed and focused towards
perceiving and applying lean production concepts. Without such
improvement and changes, design and construction teams will continue
doing the work the old way or they may pretend applying lean principles
which is unsustainable.
5 Leadership, Team Building and Lean Culture
Leadership is a social influence process in which the leader seeks the
voluntary participation of subordinates in an effort to reach organisational
objectives (Kreitner and Kinicki, 1992). Newstrom and Keith (1993) defined
leadership as the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor that binds a group together and
motivates it toward goals. It is the ultimate act that brings to success all the
potential that is in an organisation and its people.
Towards coping with the rapid changes in the business environment in
terms of policy, economy, law, technology, and competition and as an
approach to exploit the positive effects of these changes and avoid their
threats to the organisation's future, many organisations including design
firms changed their policies, strategies, structures and methods of
performing works. Team work has become the cornerstone of any
organisation wishes to remain in market and compete for the future
(Gibson et al., 2003; Othman, 2008). It become apparent that changing
peopleʼs culture to work in teams is fundamental approach that leaders
play towards achieving clients' objectives, accomplishing their satisfaction,
facilitating coping with rapid changes in the work environment, and
significantly improving the product quality (Wellins et al., 1994; Dorio,
1994). Being described as a group of people with a high degree of
interdependence geared towards the achievement of a goal or completion
of a task, team members agree on a goal and agree that the only way to
achieve this goal is to work together (Parker, 1990). Team building is a
catchall term for a whole host of techniques aimed at improving the internal
functioning of work groups, whether conducted by company trainers or
outside consultants (Kreitner and Kinicki, 1992). Training, motivating and
resolving conflicts between team members are important elements of team
building (Association of Project Management, 1993). Encouraging team
members to work and plan together results in their commitment to achieve
the agreed goals. The sense of being a part of a team encourages people
to develop their talents, contribute their ideas and pass the sense of
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teamwork to others in their organisations (Macadam, 1996). With the
presence of an effective organisational leadership, design and construction
firms can create a lean culture through utilising the power of team work to
change the way of doing work, perceive, adopt and apply the lean
production principles in construction projects. Training design and
construction team leaders to educate, lead and direct design and
construction teams and motivating them to deliver lean projects is a
paramount to achieve lean construction objectives. The role of leaders
within the organisation is a fundamental element of sustaining the
application of lean principles. One of the obstacles of achieving the
objectives of lean construction is that organisations focus on the tools and
methodologies of lean rather than the philosophy and culture of lean.
Empowering employees through engaging them in long-term relationship
based on continuous improvement and team work as well as mutual trust
are considered one of the pillars of core management principles towards
continues improvement where the other pillar is elimination of waste
(Mann, 2005; Schabracq, 2005; Othman, 2008).
6 CASE STUDIES OF ORGANISATIONS BENEFITED FROM
CULTURE CHANGE IN IMPROVING THEIR PERFORMANCE
The following are five online case studies collected purposely to show how
changing organisational culture and adopting lean principles can help
organisations improve their performance and achieve their goals. These
cases, which took place in UK and USA, covers organisational re-structure,
leadership development, increasing annual turnover and reducing waste of
time and cost. Three of these cases are business and banking oriented
where the others are construction oriented. Learning from other industries
is beneficial and helps improve the construction industry.
6.1 Case Study (1): Communicating organisational change in a
high street retailer
An organisational re-structure necessitated that two teams consist of 2500
employees represent the call centre and frontline sales staff, have to be
joined together in one organisation. This called for the creation of lean
culture and team ethos to:
Inspire and encourage team leaders and employees to
embrace and co-operate with each others.
Create a deep understanding and ownership of their roles
and responsibilities towards achieving business objectives.
Improve communication between team members and
management team.
Towards building lean culture, a training session is delivered to 4 groups of
50 team Leaders. It included:
Communicating the vision of the new organisation.
Analysing the performance of team leaders and their
teams against the stated vision.
Identifying the organisational and individual barriers that inhibit
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achieving the business vision, and putting the solutions
to overcome these obstacles.
Creating a powerful experience and personal commitment as
well as team sprit amongst all team leaders.
Introducing the management tools available to assist team
leaders to face the challenges of leading their teams and
communicating the business vision.
Developing an action plan to be implemented after the return
or team leaders to their workplace.
Subsequently, the 200 leaders communicated the messages with
enthusiasm and commitment to their teams to achieve. To measure the
achievement of the business vision, it was linked to their performance
plans, which also incorporated using the management tools, and measured
the success through learned lessons and feedback gained from employees
(Pinpoint Management Training, 2010).
6.2 Case Study (2): Leadership Development in an International
Bank
Because of an organisational re-structure, a number of leadership
initiatives have been developed and delivered to the senior management to
raise business performance through reducing staff turnover and increasing
high performing teams. After 6 months, these initiatives were reported as
not producing the expected business results. Hence, a consultant was
introduced to evaluate and provide suggestions and feedback to make
these initiatives more successful. The consultant reviewed the content of
the designed initiatives and conducted survey questionnaires with all
leaders. Analysis of collected data showed that:
The developed initiatives were focused on detailed
information, based on theory and lacked relevance to their
roles.
There was no opportunity to practice skills and employees
were unsure of what to implement and the way forward.
Then, the consultant established the development needs through involving
and consulting with the individual leaders. An approval for the developed
needs have been gained from the executive sponsors. A number of
objectives have been devised to fulfil the development needs, they
included:
Understanding the available tools, how and when they will
be used.
Providing an opportunity to practise these tools in a
safe environment.
Establishing effective ways for implementation.
Committing to an action plan that transferred the needs and
plans to the workplace.
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As a result, individuals felt that they had a better and clear understanding
of what was expected from them and how to support each other. Regular
following up meetings were conducted to review their progress and
maintained the focus of the initiatives. In addition, the tools were
understood and used effectively, which enabled decreasing staff turnover,
and ultimately resulted in increasing business performance (Pinpoint
Management Training, 2010).
6.3 Case Study (3): Developing Leadership in a Large Corporate
Sales Team
Towards mitigating the consequences of a backdrop of organisational
change, a training consultant was approached to look at leadership
development for the senior management team. Although well established,
the team wanted to develop a stronger leadership culture to ensure that the
organisational change programme was successful and new stretching
targets were achieved. The consultant discovered a comfortable
environment where leaders operated individually with very little formal or
informal feedback process. There was a general sense that everyone
needed to be more honest when talking about performance, particularly
with under performers within their teams. As an action, a number of
objectives have been developed and agreed by team members. They
included:
Establishing strong support and challenge principles within the
team.
Establishing the principles and benefits of giving quality feedback.
Giving an opportunity to practise giving and receiving
quality feedback.
Understanding how we react to change and how to deal with this.
These objectives were delivered to 3 groups of 12. As a result and
because of its effectiveness, these sessions were subsequently cascaded
to the next management level driving the change through the organisation.
Furthermore, this was followed with 1:1 coaching and feedback sessions
with a number of key people within the senior leadership team. This has
become second nature, increasing performance levels, which sequentially
has significantly raised the sales productivity within the area (Pinpoint
Management Training, 2010).
6.4 Case Study (4): Lean Principles for Increasing Annual
Turnover
Pacific Contracting of San Francisco, a specialist cladding and roofing
contractor, have used the principles of lean thinking to increase their
annual turnover by 20% in 18 months with the same number of staff. The
key to this success was improvement of the design and procurement
processes in order to facilitate construction on site, investing in the front
end of projects to reduce costs and construction times. They identified two
major problems to achieving flow in the whole construction process,
namely: inefficient supply of materials which prevented site operations from
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flowing smoothly, and poor design information from the prime contractor,
which frequently resulted in a large amount of redesign work. To tackle
these problems Pacific Contracting combined more efficient use of
technology with tools for improving planning of construction processes.
They use a computerized 3D design system to provide a better, faster
method of redesign that leads to better construction information. Their
design system provides a range of benefits, including isometric drawings of
components and interfaces, fit co-ordination, planning of construction
methods, motivation of work crews through visualization, first run tests of
construction sequences and virtual walk troughs of the product. They also
use a process-planning tool known as Last Planner to improve the flow of
work on site through reducing constraints such as lack of materials or
labour (Construction Excellence, 2004).
6.5 Case Study (5): Lean Principles for Reducing Waste of
Projectʼs Time and Cost
The Neenan Company, a design and build firm is one of the most
successful and fastest growing construction companies in Colorado. The
firm has worked to understand the principles of lean thinking and look for
applications to its business, using ʻStudy Action Teamsʼ of employees to
rethink the way they work. Neenanʼs have reduced project time and cost by
up to 30%, through developments such as:
Improving the flow of work on site by defining units of
production and using tools such as visual control of processes.
Using dedicated design teams working exclusively on one design
from beginning to end and developing a tool known as
ʻSchematic Design in a Dayʼ to dramatically speed up the design
process.
Innovating in design and assembly, for example through the use
of pre-fabricated brick infill panels manufactured off site and pre-
assembled atrium roofs lifted into place.
Supporting sub-contractors in developing tools for
improving processes (Construction Excellence, 2004).
7 DISCUSSION
Literature review and case studies showed that creating organisational
lean culture through changing peopleʼs values, attitudes and behaviours is
a cornerstone for achieving lean principles objectives in construction
projects. Organisations are concerned with lean tools and techniques,
where the most important asset (employees) who use these tools and
apply these techniques, do not receive enough training or motivation to
embrace and apply lean concepts. This necessitated the importance of
developing a lean culture framework to facilitate the adoption and
application of lean principles in design and construction firms through
culture change. In addition, the support and understanding of senior
management helps, greatly to achieve development objectives.
Furthermore, the assistance of external training and development
institutions could be helpful if the organisation does not have sufficient
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experience to improve its performance, face its challenges or ultimately
seeking new ideas.
8 THE LEAN CULTURE FRAMEWORK
8.1 Definition and Importance
Framework is defined as a broad overview, outline, or skeleton of
interlinked activities which supports a particular approach to achieve a
specific objective, and serves as a guide that can be modified as required
by adding or deleting items (Business Directory, 2011). The Lean Culture
Framework (LCF) (hereinafter referred to as "the framework" or the "LCF")
describes the functions and activities that need to be undertaken as well as
the tools and techniques required, to effectively create lean culture in
design and construction firms towards achieving lean principles objectives
in construction projects. The need for this framework stems from the
necessity to improve the performance of the construction industry through
achieving the objectives of lean principles in terms of generating values,
reducing cost, meeting customer needs, reducing waste and continues
improvement.
8.2 Description of the Framework
The framework consists of four activities: (1) Establishing culture vision,
mission, objectives & strategies, (2) allocating resources & getting senior
management support, (3) implementing developed plans, (4) evaluating &
feedback, see figure (1).
Figure (1) Lean Culture Framework
(a) Establishing culture vision, mission, objectives & strategies
This activity represents a fundamental aspect of this framework as it
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2011 Culture Change in Construction: A Novel Approach for Achieving JHB, South
Africa Lean Principles Objectives in Construction Projects ISBN:978-0-86970-713-5
Figure (2) Cascade Approach
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considers building lean culture as a strategic element towards achieving
lean principles objectives. Hence, it has to be planted in the organisation
overall vision. This is the responsibility of top management of the
organisation. It should be a short, succinct, and inspiring statement of what
the organisationʼs culture should be in the future. It describes aspirations
for the future, without specifying the means that will be used to achieve
those desired ends. After the lean culture vision has been established, it
needs to be put in a practical way to be achieved. This will be
accomplished through breaking down or transferring the organisationʼs
vision into a mission, then objectives and finally strategies. This could be
done through using the Cascade approach to strategies setting, see figure
(2). Establishing vision, mission, objectives and strategies provides
direction and guidance to the employees, measuring objectives
achievement and setting time line and designates duties of all personnel.
(b) Allocating resources & getting senior management support
This is the second activity of this framework. It is of prime importance after
the establishment of vision, mission, objectives and strategies to allocate
the resources needed for implementation. Conducting a kick off meeting is
essential to set the rules, establish the grounds, state the norms, values
and way of work. Within this meeting every employee is assigned a task,
needed resources are provided and timeframe is established. Getting
management support and approvals is necessary to facilitate securing the
required resources, apply the lean principles at the different stages of the
design and construction process, and enforce corrective actions when
needed.
(c) Implementing developed plans
Within this activity, the assigned tasks and developed plans in the previous
step will be executed. The implementation plans may require that
employees involved in the lean process be trained and equipped with all
tools and technologies required to guarantee the successful execution of
plans. In addition, team work and senior management support and offering
required facilities will help developing lean culture and achieving lean
construction objectives. To ensure the quality of work performed, the
implementation activity should use the work authorization system, which
verifies predecessor activities and permits the successor activity to begin.
(c) Evaluating & feedback
The aim of this activity is to evaluate the organisationʼs performance
towards achieving the established vision, mission, and objectives
developed at the first activity. It focuses on investigating how the design
and construction firms succeeded in building lean culture and to what
extent it helped accomplishing lean construction objectives. Errors,
misunderstanding and problem occurred as well as corrective actions
taken during the implementation activity have to documented and fed back
to senior management to consider when developing new strategies in the
future.
8.3 Application of the Framework
The framework establishes the activities and set the rules that help
creating lean culture as an approach for achieving lean principles
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objectives. But due to limited timeframe of the research, it was not possible
to apply and evaluate the framework. Hence the LCF needs to tested and
validated in real construction projects. In addition, the effective application
of the LCF depends to a large extent on the willingness and
encouragement of the senior management in design and construction firms
to adopt the developed framework. In other words, if the senior
management does not have the desire and tended not to use the
framework, then its adoption will be limited. Since the adoption and
application of the framework is a long-term process and due the tight
schedule in construction projects, this framework might not be welcomed
by some sectors of the industry.
8.4 Action Plans for facilitating the adoption of the framework
In order to overcome the above mentioned limitations and increase the
opportunities of adopting the framework, the following action plans have to
be followed:
Introducing the concept of lean culture to the construction industry
in general and managers and employees of design and construction firms
in particular and highlighting the importance of building lean culture as an
approach for achieving lean construction objectives. This could be done
through publications, workshops, symposiums and conference carried out
by academics and professionals specialized in this area and organized by
engineering associations and professional bodies (i.e. Lean Construction
Institute) and cost will be shared by participants or by covered by local
councils or sponsors.
The benefits of the framework should be presented and explained
to senior management in order to convince them with the role, which the
framework could play in achieving lean construction objectives. This could
be done by research and development (R&D) departments at design and
construction firms.
Sufficient time and resources should be allowed and offered to build
lean culture in design and construction firms to facilitate the implementation
process.
9 CONCLUSIONS AND RECOMMENDATIONS
Although the construction industry has been considered as one of the
biggest industries worldwide, it has been known for its chronic problems of
fragmentation, low productivity, time and cost over-runs, poor safety,
inferior working conditions, and insufficient quality. Towards overcoming
these problems and learning from other industries that made leaps of
improvement, a number of initiatives have been developed. Despite the
valuable contributions of these initiatives, the performance of the
construction industry is considered low if compared to other industries. The
growing recognition for lean production worldwide called for the application
of lean principles in construction. In spite of the application of lean
principles in many organisations, the absence of lean culture in design and
construction firms is a constraint that hinders the achievement of lean
objectives. This paper highlighted the need for creating lean culture in
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design and construction organisations and developed a framework to
facilitate the creation of such culture. A number of action plans essential for
adopting and successful application of the framework have been
developed. This paper recommends creating lean culture in design and
construction firms as an approach for gaining the benefits of lean
principles. In addition, the paper encourages R&D departments in design
and construction firms to test, validate and improve the developed
framework to suite their requirements and highlight its benefits and learned
lessons to peers in the construction industry.
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ASOCSA2011-52
Improving the quality of life in low
income residential neighbourhoods of
Ibadan, Nigeria.
Adeniran A. A1, Elegbede O.T.2, Onakoya B.O.3
Department of Estate Management, The Federal Polytechnic, Ado
Ekiti, Nigeria
[email protected], 234 8030709902
Department of Estate Management, The Polytechnic, Ibadan,
Nigeria
[email protected], 234 8052245 637
Department of Estate Management, The Federal Polytechnic,
Ilaro, Nigeria
[email protected] 234 8074874639
ABSTRACT
Purpose: This study seeks to investigate the quality of life of people in the
low income strata in Ibadan and proffer actionable solutions vis-a-vis policy
formulation.
Design/Methodology/Approach: A review of literature which is hinged on
the framework of habitability model is used as a standard for quality.
Closed and open ended questionnaires were administered on residents of
identified low income neighbourhoods and analyzed using simple tables.
Findings: It was discovered that so many residents are victims of unfair
application of urban renewal policies which gives results opposite of what
was initially intended.
Research Limitation & Implication: The survey was carried out on low
income neighbourhoods of Ibadan randomly sampling 1000 respondents.
Adequate funds and time coupled with sincerity on the part of respondents
would have given greater spotlights on the discourse.
Practical Implication: This paper creates awareness for low income
dwellers and tenants that they can contribute their quota to policy
formulations which in turn affects their well-being
1.0 INTRODUCTION
In terms of meeting housing needs in Ibadan and elsewhere, the largest
producers of housing and the main urban developers are the local residents
557
who have built more than 30 per cent of the countryʼs housing stock.
(Agbola, 2007) In securing housing, low-income families have adopted
various strategies including owner-occupation, renting and squatting. In
recent decades, there have been fewer opportunities for squatting which
traditionally is the preferred strategy for accessing housing by the urban
poor vis-à-vis the low income group.
There is great variety in the proportion of people in different cities
who are tenants (from cities where less than 10 per cent are tenants to
cities where more than 80 per cent are tenants). A recent survey of cities
during the last population census showed that more than 60 per cent of the
population were renters. (NPC, 2006). As land becomes more valuable,
illegal land occupation become more difficult and there are few sites for
which ownership is not already claimed (whether legally or illegally). Cheap
land sites are almost always available in the less commercially attractive
areas but in general, in the larger the city, the greater the distance between
these cheap sites and the locations where most low-income households
secure their livelihoods. As demand for housing increases in areas where
many cannot afford to own land, those with land adjust or extend their
structures to allow part or all of them to be rented. Renters may face
increasing rents with few possibilities for owner-occupation.
In Ibadan, as witnessed in most Nigerian cities, uncontrolled
expansion of the city was not foreseen and no plans were made to maintain
the basic infrastructure of the city while major problems are simply dealt
with after they have occurred.
In this context, this paper looks at how to make urban centres fit to
live in while promoting and encouraging alternative and participatory plans
to secure decent housing for all. Effective housing policies must learn from
and build on the livelihood and housing strategies developed and used by
the most deprived sector of the population. In this respect, metropolitan
Ibadan offers a significant opportunity arising from the concentration of poor
urban citizens who daily demonstrate their creativity by ensuring their own
survival and that of Ibadan as a city.
Tenants are often particularly vulnerable to rapid socio-economic
and urban change. They generally have little or no effective legal protection
and can be displaced from their accommodation by the owners at short
notice. Even where contracts exist between tenants and owners, owners
often insist on short-term contracts. Tenants are often subjected to sudden
increase(s) in rent, especially when landlords are themselves suffering
economically and increasing the rents becomes necessary to maintain their
incomes. There are few opportunities for tenantsʼ involvement in improving
the environmental quality of their settlement(s). This paper does not seek to
add to literatures, instead, it concentrates on what might be done to
improve the condition of tenants through development programmes and
other interventions. As the discussion in the paper shows, whilst in general,
there have been few policy and programme initiatives to address the needs
of those living in rented accommodation, neither organizations nor
government(s) have sought to work with tenants in improving the range and
quality of the accommodation options available to them. It is hoped that this
paper will be effective in promoting tenants and their needs and will
encourage a wide range of learning and practical initiatives.
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2.0 THEORETICAL FRAMEWORK (HABITABILITY MODEL) AND
LITERATURE REVIEW
The issues involved in housing whether low, medium or high income
group is more than shelter. The habitability of a house is influenced not
only by the engineering elements but also by social, behavioral cultural
and other elements in the entire socio-environmental system. (Awake,
2005).
What constitutes habitability vary according to the surrounding
circumstances and because the satisfaction of human beings cannot be
absolute, the habitability of a housing unit or the satisfaction of the
tenants at a point in time can be meaningfully defined only in relative
rather than absolute sense.
Habitability, as will be used in this study, refers to a type of tenant,
dwelling, environment and management interaction system. This system
produces a type of dwelling which is regarded by the tenant component of
the system as relatively acceptable or adequate and therefore habitable,
in the light of what tenants consider to be their housing needs and
expectations.
As described above, habitability is portrayed as a human concept
which involves four interacting subsystems namely the tenant subsystem;
the dwelling subsystem; the environmental subsystem and the
management subsystem. (See Figure 1.1)
Relating Figure1.1 specifically to the focus of this study, the adequacy of
a housing unit as determined by the internal space, the structural quality,
the household facilities and other such amenities and qualities, as well as
the form of ownership, will to a large extent influence the level of
satisfaction of the inhabitant. However, previous studies
carried out by Agbola (2007), United Nations Housing rights Programme
(2003) among others have shown that housing unit by itself is not the only
factor or the determinant of housing need satisfaction. The unit is only a
part (a subsystem) of the whole (the system) which constitutes
habitability. (Michelson, 1970; Back, 1962).
TENANTS
SUBSYSTEM
MANAGEMENT INHABITANT ENVIRONMENT
SUBSYSTEM SUBSYSTEM
DWELLING
SUBSYSTEM
RELATIVE HABITABILITY LEVEL (RHI or RSI)
Figure. 1.1 Housing Habitability System (Adapted from Egunjobi 2007)
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Neighborhoods Of Ibadan, Nigeria. Africa ISBN:978-0-86970-
713-5
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Olatubara (2007) quoting Onibokun (1973) said that the housing unit as a
part of an environment and the inhabitants, through the interaction
process, inevitably come into contact with the various components of their
environment. As mentioned earlier, the components of the environment
will have an influence, negative or positive, on the inhabitantsʼ state of
mind within the environment.
At the centre of the habitability system is the inhabitant (the fourth
system), arbiter of what constitutes habitability. The inhabitant is the
recipient of all the feedbacks from all the systems and is, therefore, the
central focus of the conceptual model of habitability on which a study of
housing should be based.
Thus, in a simplified sense, assessing habitability means
evaluating the level of satisfaction of a tenant living in a particular housing
unit which is a part of a housing stock and is located within a particular
community and managed under a type of Institutional management.
There are also several views on who the
occupants of rental housing are and the factors which influence their
housing consumption. Olutayo (2007) described rental-housing sector in
a large city as a case of a monopolistic competition among a large group
of sellers. He observed that the product is differentiated by quality,
location and layout, rooms per unit, etc. Hence, within each of the smaller
sub-markets, different rents may be charged based on the quality
differentiations of the individual units. One school of thought as
typified by Ingrain (1984) posits a basic sociological and demographic
difference between households who rent and those who choose to own
their own buildings. For example, he reported that rental households in
Bogotá and Cali, Columbia, have younger heads, smaller families and
lower income than owners.
Howenstine (1981) also cited special groups which prefer rentals - the
more highly mobile, the younger and the more newly independent. The
importance of these views is that there will be a base level of demand for
rental housing in any city or country related to the population of these
special groups.
Whatever the actual causes of demand for rental housing,
conditions associated with high demand for rentals are likely, for the
foreseeable future, to remain typical of most Nigerian cities. High birth
rate and family formation, inflationary pressure, high rate of migration, etc.
assume a continuing presence of the types of households likely to be
prime consumer of rental market. Besides
these basic sources of demand, Agbola (2007) quoting evidence from the
literature and other developing countries pointed to a number of features
which characterize the demand for rental housing to include:
household income of renters found to be generally low as
compared to home owners (Mayo et al, 1965)
renter generally seem to demand less space than home owners
(Mayo et al, 1965; Lemer, 1980)
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Security of tenure, widely cited as a major advantage of home
ownership is valued higher by renter as well. (Friedman et al,
1985)
All these features reinforce the continual dominance of rental housing
sector. Its importance cannot therefore be overemphasized in any
genuine effort to formulate a Housing Policy.
3.0 THE STUDY AREA
Ibadan, the capital of Oyo State and the largest indigenous city in West
Africa was found as a war camp during the inter-tribal war in 1829.
The city lies between latitude 71o and 72o, North of the equator and
latitude 34o and 35o East of the Greenwich Meridian, falls within the
Western plains and are underlined by metamorphic rocks derived from pre-
Cambrian rocks. The characteristic landscape consist expansive plains
broken by North/South quartzite steep-sided ridges, which occur simply or
in groups to give the insulting terrain of the city. The relief of a settlement
usually dictates the type of drainage that can be found within such
settlement. Ibadan is drained by two major rivers- the Ogunpa and Ona
rivers. The former drains the eastern while the latter drains the western
parts, thus, rising in the northeastern section of the areas. The Ogunpa
River flows south-eastwards breaking through the central ridge turning
south a course that is parallel to the ridge. In the
year 1901, the railway line was constructed from Lagos to Ibadan. This
promoted trade and marked the beginning of a new era. Similarly, it
represented new system of commercial articulation, which enabled the
produce of the land to be exported to the outside world. Ibadan city,
therefore, emerged as one of the most important education, commercial
and administrative centres in Nigeria. Ibadan,
the capital city of Oyo State, South Western Nigeria with a population of
3,078,400 (three million, seventy eight thousand, four hundred) according
to the census of 2010 has five Local Governments in her metropolitan area.
The metropolis which is growing in its leaps and bounds has so many slum
developments. Identified low- income residential neighbourhoods in Ibadan
metropolis include Beere, Yemetu, Ijokodo,
Eleyele
,
Sango,
Apata
etc.
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No of People/Room No. of Resp. %
1–3 141 16
4–7 669 77
above 7 60 07
870 100
4.0 METHODOLOGY
In order to obtain detailed information, investigation started with a pilot
survey while structured questionnaire relating to the study were drawn up
and administered on respondents randomly. On the whole 1000
questionnaires were administered and the 870 retrieved questionnaires
were analyzed using simple tables and summarized hereunder.
5.0 DATA ANALYSIS/RESULTS AND DISCUSSIONS
TABLE ASOCSA 2011-52.1 Showing No. of People Per Room
Despite the several regulations and the level of education as evidenced in
Table ASOCSA 2011-52.1, many of the buildings are densely populated as
over 80% of the respondents said that they are more than 3 in a room. This
means the areas are overcrowded and congested.
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Fig. 1.2: Facilities Provided
From the survey as shown in Fig. 1.2, 63% of the respondents have access
to primitive ways of sanitary disposal with only 37% having the modern
means. It implies that the way human waste is disposed can hamper the
health of the society.
As shown in table ASOCSA 2011-52.2, the main source of water
supply for most of the respondents was through sunk well which were
either untreated or unfit for human consumption. This is real term could
affect the healthy living of respondents. Also, access which is an important
aspect of any settlement is sub-standard as evidenced by 76% of the
respondents claiming that it was not motorable or through paths. This
allows for clustering of houses and hence slums.
95% of the respondents said that the drainage condition was not
good and over 80% of the respondent do not dispose of their waste in a
healthy and appropriate manner.
TABLE ASOCSA 2011-52. 2: Amenities Provided
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Residential Neighborhoods Of Ibadan, Nigeria. ISBN:978-0-86970-713-5
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Water Source No. of Respondent %
Sunk Well 511 59
Pipe borne (public) 127 15
Bore hole (treated) 92 10
None 140 16
Total 870 100
Accessibility No. of Respondent %
Tarred 217 24
motorable 519 59
Unmotorable 103 12
Path 31 05
None
Total 870 100
Drainage Condition No. of Respondent. %
Poor 599 67
Fair 233 28
Good 38 05
Total 870 100
Refuse Disposal Mode No. of Respondents. %
Dunghill 238 28
Open space 212 24
Public incinerator 111 11
Drainage 264 31
Private 45 06
Total 870 100
TABLE ASOCSA 2011-52. 3 Residential Problems of the Low-Income Dwellers
Respondents Percentage
%
Problems of Yes No Total Yes No Total
Application of Urban Renewal Policies 801 69 870 92 08 100
Legislative protection for Slum dwellers 870 00 870 100 00 100
Access to Bank Credit 763 107 870 87 13 100
Unity among Tenants 233 637 870 26 74 100
Ownership of Rented Apartments 222 648 870 23 77 100
6.0 DISCUSSION OF FINDINGS
The study finds that the types of problems faced by the low income
neighbourhood dwellers in Ibadan fall under the categories as found in
table ASOCSA 2011-52.3.
The central slum neighborhoods in Ibadan especially those in the
historic city centre such as Beere, Sango, Yemetu etc. are the subject of
contradictory town planning and urban renewal policies applied by
governments as evidenced by 92% of the respondents. The process of
urban renewal undertaken focuses on the re-development of public areas –
squares, avenues and roads – with the aim of making traffic flow smooth,
reducing environmental deterioration and improving the cityʼs aesthetics.
Furthermore, most statutory reforms, as discussed by the
respondents, give priority to protecting property rights and land ownership.
Tenants have no rights to an adequate standard of housing or to any
degree of protection against arbitrary decision-making. Rents are
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Residential Neighborhoods Of Ibadan, Nigeria. ISBN:978-0-86970-713-5
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established by the market and subjecting tenancy to free market whims is
already leading to evictions from private and government properties.
In addition, 87% of the respondents posited that housing loans are
only accessible to families with a monthly income which is attractive to
them and they charge an annual interest rate of at least 22 % which is far
beyond the reach of low-income families from becoming owner-occupiers.
Access to other loan programmes is hinged on other social inter-personal
connection or even political affiliation.
Also, the respondents said that there was no unity among the low
income dwellers due to the predominant cultural pattern noticed in most
settlements. Many low-income neighborhood dwellers suffer problems such
as drug abuse, street violence as well as alcoholism without seeking ways
of resolving them in a systematic and sustained manner. These factors,
combined with overcrowded living conditions, inadequate basic service
provision and poor environment (such as lack of ventilation and sunlight),
exacerbate violence and aggression within and between families cause
them to engage in survival of the fittest.
As shown in the table ASOCSA 2011-52.3, only 23% talked about
ownership problem and the remaining 77% said no to the issue of
ownership, this means that most of the respondents are actually tenants
and thus have no ownership issues.
7.0 CONCLUSION AND RECOMMENDATIONS
This paper has looked into the quality of life of low-income residential
neighbourhood dwellers, who are mostly tenants, in Ibadan metropolis and
made revealing discoveries. Actionable recommendations to better address
the needs of low income residential dwellers include but is not limited to the
following;
A considerable proportion of low income urban dwellers meet their
needs for housing through the rental sector and, in many cities, the rental
sector is growing in absolute numbers. It is inconceivable that all urban
residents can meet their accommodation needs through home-ownership.
Those with responsibility for housing issues and policies as the
management subsystem need to look more carefully at the kinds of
interventions that might be effective in improving the supply of rented
accommodation (hence the choices open to tenants) and the quality of
such accommodation.
In addition, the situation of tenants can be improved through deliberate
interventions to increase the supply of rental housing. An alternative
approach to increasing the supply of private accommodation is the
development of public and non-profit housing.
Further more, legal approaches should be sought at solving
tenantsʼ problems with a concern to ensure that appropriate laws and
regulations are in place to protect both tenants and landowners.
Also, strong representative tenantsʼ movements to enable tenants
work with professional agencies involved in housing and urban
development at both a community/town and city level should be formed.
Such involvement should ensure that proposals, policies and programmes
are effective in addressing tenantsʼ needs by
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Residential Neighborhoods Of Ibadan, Nigeria. ISBN:978-0-86970-713-5
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forming policy interventions that make effective and realizable
proposals for improving the legislative framework;
monitoring market conditions and informing interested parties of
changes in the situation faced by tenants;
providing legal advice and support when individual tenants are
threatened; and
enabling tenants to act together to increase the options that are open
to them and to lobby for acceptance of these options by state
agencies.
8. REFERENCES
Agbola T. (1994), Formal and Informal Housing in Filani M.O. et al eds.
Ibadan Region, Rex Charles Publication.
Agbola T. (2007): “The Challenges of the Housing Sector Reform during
Obasanjo Years (1999-2007)” Paper presented at Housing Fair, April.
Awake (2005): The Global Housing Crisis- is there a Solution? Watchtower
Bible & Tract Society, New York, September 22, pp 3-9.
Baross, Paul (1990), “The impact of urban development and management
of the spatial location of rental housing stock in Third World cities” in
UNCHS (1990), Rental Housing: Proceedings of an Expert Group
Meeting, UNCHS (Habitat), Nairobi, pages 132-133.
Burgess, Rod (1982):Self-help Housing Advocacy: A Curious form of
Radicalism in Self-help Housing a Critique. Ed. Peter Ward, 56-98.
London: Mansell.
Egunjobi L., Jelili M.O. & Adeyeye L. (2007) Urban Renewal in Agbola T.,
Egunjobi L & Olatubara C.O. in Housing Development and
Management: a book of Readings. Dept of Urban & Regional Planning,
University of Ibadan, Nigeria, 538-565.
Friedman J. (1985): The Demand for Tenure Security in Developing
Countries. Report prepared under the World Bank Project No. 672-46,
February.
Gilbert, Alan, Jorge E. Hardoy and Ronaldo Ramirez (eds) (1982), “Cities of
tenants: renting among the urban poor in Latin America”
Green, Gill (1990), “A case study of housing tenure and rental
accommodation in Santa Cruz, Bolivia” in UNCHS (1990).
Habitat International (2007): “Rental housing in urban Indonesia”, Vol.15,
pages 181-206.
Howenshine E.J. (1981): Private Rental Housing Abroad: Dwindling Supply
Stirs Concern. Monthly Labour Review Pp. 38-42, September.
Ingrain G. (1984) Housing Demand in the Developing Metropolis: Estimates
from Bogotá and Cali, Colombia. Staff Working Paper No. 663,
Washington D.C. World Bank.
National Population Commission (2006): Population Census 2006 Abuja
National Population Commission.
Olatubara C.O.(2007): Fundamental of housing in Agbola T., Egunjobi L &
Olatubara C.O. in Housing Development and Management: A Book of
Readings. Dept of Urban & Regional Planning, University of Ibadan,
Nigeria, 70-106
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Residential Neighborhoods Of Ibadan, Nigeria. ISBN:978-0-86970-713-5
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Olutayo A.O.(2007) Sociology of Housing in Agbola T., Egunjobi L &
Olatubara C.O. in Housing Development and Management: A Book of
Readings. Dept of Urban & Regional Planning, University of Ibadan,
Nigeria 150-172
UNCHS(Habitat)(2008) Rental Housing: Proceedings of an Expert Group
Meeting, Nairobi, pages 56-66.
van der Linden, Jan (1990), “Rental housing of the urban poor in Pakistan:
characteristics and some trends” in UNCHS (1990), Rental Housing:
Proceedings of an Expert Group Meeting, UNCHS (Habitat), Nairobi,
pages 50-55.
Ozo, A.O. (1993), Support Measures to Promote Low-income Rental
Housing: the Case of Nigeria, UNCHS (Habitat) mimeo; also Lloyd,
Peter (1990), “Epilogue” in Amis, Philip and Peter Lloyd (editors) (1990),
Housing Africaʼs Urban Poor, Manchester University Press, pages 278-
298
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ASOCSA2011-46
Timely Project delivery: a case study
of Malawian educational projects
1 2 3
Chirwa, D. , Samwinga, V. and Shakantu, W.
Education Infrastructure Management Unit (EIMU), Lilongwe, MALAWI,
[email protected], Tel No. +265 (0) 999953385
School of the Built and Natural Environment, Northumbria University,
Newcastle upon Tyne, UK,
[email protected] Tel ++
44 (0) 191 227 4556
School of the Built Environment, Nelson Mandela Metropolitan University,
Port Elizabeth, South Africa.
[email protected], Tel No.
+27-41 504 2394
ABSTRACT
Purpose of this paper: The completion of construction projects in a timely
manner is often a critical factor and measure of project success. However,
in many cases, delays plague the delivery of construction projects in many
parts of the world. The purpose of the paper is to critically evaluate the
performance of the UK-funded Education Sector Support Programme
(ESSP) infrastructure projects in Malawi, with respect to timely completion.
Design/methodology/approach: The research uses a case study
approach, which critically evaluates the extent of schedule overruns
through the collation and analysis of secondary data from the portfolio of
projects administered by Malawi’s Education Infrastructure Management
Unit (EIMU) between 2003 and 2008.
Findings: A significant number of the educational projects administered
under the ESSP have been plagued by delays, and other project
management and delivery problems. Out of 184 contracts administered
between 2003 and 2008, less than a third of them achieved timely
completion and yet the liquidated damages clause was only enforced in
29% of the 111 delayed projects, leaving contractors to complete at their
own time. Furthermore, the mitigation measures put in place to prevent
poor project performance do not seem to have the desired effect.
Research limitations/implications: The scope of the research is limited
to the construction programme directly administered by the Education
568
Infrastructure Management Unit (EIMU), which only covers projects from
the Education Sector in Malawi. In addition, no attempt was made, in this
phase of the research, to explore the specific causes of delays. Doing so
would have provided a contextual perspective to the issue of timely
delivery.
Originality/Value: The paper contributes to the knowledge base on
infrastructure project delivery in developing countries. The findings should
be of interest to a wide range of stakeholders involved in the delivery of
public projects including government departments, external funding
organizations, non-governmental organizations, academics and
practitioners in relevant fields.
Keywords: Aid, Delays, Developing Countries, DFID, Infrastructure,
Malawi.
1.0 INTRODUCTION
The problem of delays in the construction industry is a global one
(Sambasivan and Soon, 2007). As a result, the literature is replete with
studies investigating delays in various countries worldwide, including
Nigeria (Dlakwa and Culpin, 1990, Mansfield et al., 1994; Abinu and
Jagboro, 2002), Saudi Arabia (Al-Khalil and Al-Grafly, 1999), Jordan
(Sweis, et al, 2008), Zambia (Kaliba et al., 2009), Ghana (Fugar and
Agyakwah-Baah, 2010), Thailand (Ogunlana et al., 1996), Malaysia
(Sambasivan and Soon, 2007).
When delays occur on construction projects, they can have serious
consequences. Sambasivan and Soon (2007) foundthe six main effects of
delay on construction projects in Malaysia to be cost overruns, time
overruns, disputes, arbitration, litigation, and total project abandonment.
All these effects of construction delays have the potential of
adversely affecting a project’s ability to achieve its objectives. As a result,
the completion of construction projects in a timely manner is therefore
almost always a critical measure of project success.
The scope of the research is limited to the construction programme
directly involving the Educational Infrastructure Management Unit (EIMU).
The size and scope of the programme administered by EIMU justifies its
study. It is the largest in the Education Sector in Malawi, employing
approximately 30 to 40 contractors annually to deliver a combined average
output of 300–500 classrooms. Annually 5-6 Architectural consulting firms,
(almost 30% of all such firms in Malawi), are engaged on ESSP projects.
The purpose of the paper is to critically evaluate the performance of
these UK-funded projects under the Education Sector Support Programme
(ESSP) in Malawi, with respect to timely completion. Over the years, there
have been concerns regarding the performance of these projects. Such a
569
review is even more important at this time when the UK’s foreign aid
budget remains unchanged while British taxpayers are feeling the
economic squeeze at home due to the various measures introduced by the
government to reduce the country’s huge national debt.
2.0 THE CHALLENGE OF TIMELY PROJECT DELIVERY
Due to the global nature of the challenge of delays in the delivery of
construction projects, there is a vast amount of literature on the subject. A
selection of literature is reviewed, focusing on studies conducted in a
handful of sub-Saharan African countries. Such a review provides an
excellent perspective of the extent of the problem of delays in other similar
developing countries, together with the causes as well as mitigation
measures. The choice of studies from other African countries provides a
good basis for performance comparison because the conditions affecting
the selected countries will be similar to those experienced in Malawi.
2.1 Delays in construction projects in Ghana
Frimpong et al. (2003) identified five factors, out of a list of 26, as the major
causes of delays to projects in Ghana as: monthly payment difficulties to
contractors, poor contract management, material procurement difficulties,
poor technical performance and material price escalations. They
recommend effective and efficient management of projects as the ultimate
solution to time overruns.
More recently, Fugar and Agyakwah-Baah (2010) also reiterated that
delays in construction projects are still endemic in Ghana. They
investigated a total of 32 factors causing delays in construction projects,
which the research participants (clients, consultants and contractors)
ranked according to the factors’ order of importance. Based on their
survey, Fugar and Agyakwah-Baah (2010) found that the top ten factors
associated with delays in construction projects in Ghana were:
i. Delays in honouring payment certificates
ii. Underestimation of the project costs
iii. Underestimation of the project’s complexity
iv. Difficulties in accessing bank credit
v. Poor supervision of the works on site
vi. Underestimation of the time for completion of the projects by the
contractors
vii. Material shortages
viii. Poor professional management
ix. Fluctuation of prices / rising cost of materials
x. Poor site management
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In order to mitigate the effect of the common causes of delay, Fugar and
Agyakwah-Baah (2010) recommended that clients should ensure that they
have sufficient project funds, they make speedy payments for work, whilst
contractors must have competent personnel for the project.
2.2 Delays in construction projects in Nigeria
Dlakwa and Culpin (1990) outlined the reasons for time overruns in public
sector construction projects in Nigeria. These included late interim
payments to contractors, deficiencies in the contractors’ organizations,
poor planning and scheduling, contractors’ unrealistic tenders, unrealistic
contract durations imposed by the client, additional work, unexpected
natural or social events, inadequacy of site inspectors and shortage of
qualified staff.
Mansfield et al. (1994) identified the four most important factors causing
delays and cost overruns in Nigerian construction projects as, financing
and payment for completed works, poor contract management, changes in
site conditions, and shortage of materials. Other factors identified included
inaccurate project estimation and price fluctuations.
More recently, Nwachukwu (2009) used a systems approach to analyze
the effects of materials constraints to project management success in
construction in Nigeria. The study concluded that the attitude of the client
and the project management team towards materials management is very
important because it has a marked effect on the achievement of the project
goal. For instance, delays in the procurement of materials will negatively
impact the construction programme and may result in delays and failure to
achieve timely project delivery.
2.3 Delays in construction projects in South Africa
In South Africa, Bowen et al. (2002) examined the views of contractors and
business professionals regarding the causes of delays in construction.
Client-induced changes were found to contribute the most to time over-
runs on construction projects in South Africa.
Like Nwachukwu (2009), Ganesan and Theo (2005) also advocate a
systems thinking approach to help minimize construction project failure in
South Africa. Citing Hindle (1996), Ganesan and Theo (2005) argue that
fragmentation of the building delivery process is by far the biggest single
problem leading to project failure. Professionals and other stakeholders are
encouraged to participate in projects with a big picture viewpoint rather
than simply focusing on their own small part in the project. This way,
projects are more likely to be more successful because of the emphasis on
the wider project and its objectives.
571
Samuel (2008) examined six government projects in South Africa to
determine the root causes of their failure. Poor project management was
found to be the basic problem leading to contractors failing to complete
construction projects on time and within budgets.
Similarly, Phaladi and Thwala (2009) also found management-related
issues as major causes of poor project performance for the small and
medium sized contractors in South Africa. Lack of effective management in
the early stages of the projects, coupled with inadequate finance, lack of
credit facilities from suppliers, inadequate skilled manpower, poor pricing
and tendering, inadequate contract documentation skills, and generally
lack of proper management training were the major factors contributing to
contractors’ failure to execute projects successfully.
In order to forestall the challenge of timely project delivery, Samuel
(2008) recommends that project time management be a key priority for the
contractors and that the appointment of a registered project manager for
each contract should be a mandatory condition of tender.
2.4 Delays in construction projects in Swaziland
Amongst small and medium size contractors in Swaziland, Thwala and
Mvubu (2008) found that factors such as financial constraints, relationships
with suppliers, late payments by clients, lack of necessary capacity and
competence to achieve success, were some of the key factors for
unsatisfactory performance on construction projects. However, they are
quick to point out that the problems facing the small and medium
contractors are not unique to Swaziland.
2.5 Delays in construction projects in Uganda
A study of clients’ performance in construction projects in Uganda
(Alinatwe, 2008) found that failure to pay advance payment to contractors
as provided for in the contract led to poor contractor cash flow leading to
project delays. Out of the clients surveyed, 89% did not provide any bonus
to the contractors as an incentive for timely completion and that more than
90% of the clients do not support training for the contractors. In addition,
variation orders and delayed payments by client were also identified as
causes of project delays.
2.6 Delays in construction projects in SADC & East Africa
Rwelamila (2002) comprehensively reviewed the problems affecting
performance in the construction industries in the Southern Africa
Development Community (SADC) region and East Africa. Citing several
empirical studies, Rwelamila (2002) summarised the key problems
negatively affecting performance in the stated construction industries as
follows:
572
Costly project delays due to division between design and
construction,
Lack of skilled labour and poor site supervision are two major
problems influencing quality,
Poor project time and cost performance,
Inaccurate estimates of clients project financing,
Variations issued without regards to original budget – affecting
project cash flow,
Lack of thorough briefs, skilful designs and specifications,
Efficient site management lacking,
Delay in payment of contractors,
The culture to plan meticulously and commitment to controlling the
project has not entrenched itself in the construction industry in
Kenya, and
Occurrence of variations – considered to be a reflection of
incompetence in design, lack of application of constructability and
poor project planning and control.
Other country-specific studies on project performance have been
undertaken in Southern Africa. For instance, Adolwa (2002) evaluated an
advance loan scheme put in place by the Botswana government to assist
small building contractors with project mobilization. The study found that
the scheme was not as successful as intended due to misuse of the loans.
Adolwa recommended further training of the contractors as well as
monitoring of their progress to ensure success.
In another country-specific study, Kaliba et al. (2009) investigated cost
escalations and schedule delays in road construction projects in Zambia,
which yielded a list of 14 major causes of delay. Starting with the highest
ranked factor, Kaliba et al. (2009) reported: delayed payments, unduly
protracted financial processes, financial difficulties, contract modification,
economic problems, material procurement problems, changes in the
drawings causing variations, staff problems, equipment unavailability, poor
supervision, construction mistakes made by the contractor on site, poor
coordination on site, specification changes and labour problems. Kaliba et
al. (2009) recommend the use of efficient project management tools and
practices as a major step to minimize the causes and effects of delays and
cost overruns.
573
A summary of the causes of delays identified in the selected sub-Saharan
African countries is shown in Table 1. The table shows the most commonly
cited causes of delay in the studies reviewed in this paper.
Table 1: Top 10 Causes of delays
South Africa
in selected sub-Saharan countries
Swaziland
Botswana
SADC&E.
Uganda
Zambia
Nigeria
Ghana
Africa
X X X X X X X X
Delayed Payments
X X X X X X X X
Poor Project Planning
X X X X X X X X
Poor Site Management
Poor or lack of communication X X X X X X X X
between parties
X X X X X X X
Site conditions
X X X X X X X
S hort ages/ delays in supply
X X X X X X X
Labour supply
X X X X X X X
Change orders (variations )
X X X X X X
Cont ract ors’ inadequat e c a s h - flow
X X X X X X
Underest imat ion of project costs
As shown in Table 1, all the top 10 delay factors in the selected countries
are primarily management issues. Rwelamila (2002) concluded that the
lasting solution to the problems identified in the selected countries was for
Construction Industries in Africa to modernize. However, a critical
requirement for success would be for all the relevant stakeholders in the
industry to be committed to such a transformation. Any solutions would
therefore have to address the failure of project management which is a
recurring theme in construction projects.
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3.0 RESEARCH METHODOLOGY
The study investigated project performance on Malawi’s ESSP projects
using a case study approach in which secondary in-house client’s project
documentation were systematically reviewed, data collated and analysed.
The study is limited to ESSP projects commissioned between 2003 and
2008. The secondary data reviewed over 180 project files to provide an
overview of the projects undertaken during the stated period.
4.0 SECONDARY DATA ANALYSIS AND FINDINGS
4.1 Case study background
Malawi is a southern African landlocked country which has an estimated
population of 16million and a per capita (PPP) GDP of $900 (2010 est.).
The country is very densely populated although nearly 80% of its
population live in rural areas. Malawi is primarily agricultural-based while
the economy depends on substantial economic assistance from the IMF,
the World Bank, and individual donor nations. In 2006, the country received
relief, having been classed as one of the Heavily Indebted Poor Countries
(HIPC).
Prior to the advent of multiparty democracy in Malawi in 1994, about 40%
of eligible children were enrolled in primary School. Subsequently, the new
government introduced free primary education which resulted in enrolment
increasing from 1.8m in 1993 to 2.8m in 1994 (GOVERNMENT OF
MALAWI 2007). This increase in demand for primary education brought
about challenges like shortage of teachers, inadequate text books
insufficient classrooms and teachers’ accommodation.
As Malawi’s biggest bilateral donor, the UK government has committed
itself to long term support. This assistance is provided through the UK
government’s Department for International Development (DFID).
“DFID is the largest donor in education and expects to continue to play a
lead role. Support to date, has focused on building classrooms, curriculum
reform (and new text books), teacher training, and strengthened
accountability” (DFID-MALAWI, 2007: 28-29).
Under the new UK coalition government, DFID recently renewed its
commitment to funding development initiatives, including secure schooling
for 11 million children around the world. However, the government was
careful to reassure the UK taxpayers that it would ensure that UK aid works
better by focusing on a number of performance criteria including “getting
value for money from every pound of aid we spend” (DIFD, 2011).
From 1995, DFID funded the construction of 130 new schools under the
Primary Community Schools Project (PCoSP) and completion of 200
575
classroom blocks under the Primary Education Programme (PEP). Building
on the successes of these programmes, DFID initiated the ESSP in 2001.
Table 2 shows that DFID is a major player in the provision of educational
infrastructure in Malawi. Between 2004 and 2008, DFID funded the
construction of nearly 60% of Malawi’s classroom construction, compared
to a mere 20% by the European Union’s Micro-projects unit.
Table 2: Major organizations Funding Educational Infrastructure in
Malawi
NUMBER OF CLASSROOMS BUILT PER YEAR (Numbers of Houses in brackets)
Organisation Districts 2004/0 2005/0 2006/0 2007/0 Total
5 6 7 8
DFID/EIMU 7 1,208 476 307 544 2,535
(73) (10) (48) (156) (287)
EU Micro-projects Unit Nationwide 276 131 131 268 806
(81) (41) (42) (67) (221)
MASAF Nationwide 170 170 180 - 520
Clinton-Hunter Foundation 4 - - - 125 125
SCF- USAID 4 33 33 33 - 99
GOPA Nationwide 78 - - - 78
UNICEF 6 - - - 60 60
UNDP 1 - - 48 - 48
SCF 1 - - 14 14 28
ICEIDA 1 8 - - - 8
Total 4307
(508)
Source: EIMU Office – Used with permission
Currently, the Ministry of Education, Science and Technology (MOEST),
through its implementation unit, EIMU, which became operational in
January 2008 is responsible for the delivery and maintenance of
576
educational infrastructure. Through this arrangement, DFID has continued
to fund educational construction projects in Malawi.
The main purpose of the research is to investigate the timeliness of the
delivery of educational projects in Malawi’s DFID-funded projects. The
research is limited to studies on the annual Primary Schools Construction
Programme, which is only one component of the ESSP scheme.
4.1 Procurement arrangements on ESSP Projects
The ESSP projects are typically procured using a traditional procurement
model with Architectural consultancy firms employed as lead consultants or
client’s contract administrators. In order to promote capacity building within
the local Malawian Construction Industry, indigenously owned construction
firms, Architectural and Quantity Surveying consultancy firms have been
used in the ESSP scheme.
Each year, approximately 30 to 40 contractors are engaged to deliver a
combined output of 300 to 500 classrooms. For instance, in 2007-08 alone,
a total of 44 projects were awarded with a combined value of 1.2 billion
Malawi Kwacha (£5.5million).
Design and Scope of Works
Annually the MOEST determines the projects to be undertaken by its
implementation unit (EIMU), according to existing priorities and needs. The
construction projects are typically a combination of between 2 to 12
primarily classrooms and 1 to 4 teachers’ houses. Occasionally, other
facilities such as administration block may also be part of the projects.
Each project is different in scope which is reflected in the contract duration
ranging from 10-26weeks.
The buildings have standardised designs, generally constructed of
reinforced concrete foundations, load bearing block wall and stabilized soil
blocks, roof with timber trusses and parry concrete tiles, steel windows,
steel doors and frames, plastered wall finishes internally and pointed
externally.
The Contracts
The ESSP projects use a standard form of contract, the Malawi
Government Standard Conditions of Contract (1984 Edition, Modified).
Contractors are invited to tender on the basis of firm bills of quantities,
although the earthworks and external works are normally subject to re-
measurement.
577
Contractor selection
The open system of tendering is used but only pre-qualified contractors are
eligible to tender for work under these DFID-sponsored ESSP projects.
Contractors registered with the National Construction Industry Council
(NCIC) are assessed on criteria such as financial standing, technical
standing, past experience and qualification, and experience of key
personnel. Despite the use of pre-qualification, which is aimed at ensuring
that the selected contractors have the desired capacity, experience and
expertise, the ESSP projects are still fraught with poor performance.
4.2 Contractor Performance on ESSP Projects
In 2003, DFID in partnership with the then Infrastructure Management Unit
(IMU) started the annual primary school construction programme on a pilot
basis in selected districts. One such district was Ntchisi, a small agricultural
town located about 98km north of Malawi’s capital city. One of the major
challenges to emerge from the pilot phase was the failure by contractors to
complete the pilot projects within the contract period. The Construction
Advisor for IMU did not disguise his frustration concerning the performance
of the projects during the pilot phase in project correspondence to one of
the project consultants:
“The poor performance of these contractors has caused immense
difficulties to this programme as we have never been able to evaluate the
pilot schools before the start of the main construction programme. It has
also led to a decline in the performance of most contractors in Ntchisi as
they are not worried about the consequences of failing to meet their
planned programmes as they see these contracts dragging on with no
action by the consultant or client” (IMU 2004).
Although three of the projects involved were eventually terminated, the
above raises a number of issues relating to project implementation.
Clearly, the problem and impact of delays in project delivery were noticed
as early as August 2004. However, the trend seems to have been
permitted to continue for another four years with little on no real changes.
ESSP projects have continued to suffer perennial failure with many of the
contractors failing to deliver projects within the stipulated contract period.
578
Table 3 below provides case study data of the ESSP projects executed
between 2003 and 2008 in Malawi.
Table 3: Project performance on ESSP Projects
Year Total Complete Granted Complete Late Late All Late
No. of d within EOT d within despite without Projects
Project original EOT EOT EOT
s time
2003-04 13 11 0
17 4 (23%) 2 (12%) 11 (65%)
(77%) (65%)
2004-05 52 38 0
53 1 (2%) 14 (26%) 38 (72%)
(98%) (72%)
2005-06 30 19 1(3%)
41 10 (24%) 11 (27%) 20 (49%)
(73%) (46%)
2006-07 16 14 2 (7%)
29 11 (38%) 2(7%) 16 (55%)
(55%) (48%)
2007-08 28 0
44 7(16%) 37(84%) 9 (20%) 28 (64%)
(64%)
Totals 148 110 3 (2 %) 113
184 33 (18%) 38 (21%)
(80%) (59%) (61%)
Out of all the ESSP projects reviewed, only a third (33%) were completed
within the original contract duration. Owing to the nature of the delays, a
significant number (80%) of the projects were granted extension of time
(EOT), with some up to as much as 178weeks! Out of all the contracts
granted extension of time, less than a third (21%) of them were completed
within the extend period. A significant number of the projects were
therefore delayed by up to 124 weeks. The performance of the contractors,
in terms of timely completion, has clearly been mediocre. However, the
failure by the client and their advisors (consultants) to enforce the
conditions of contract also seems to be perpetuating the problem.
4.3 Mitigating Poor project Performance
Due to the poor performance of the contractors, the client instituted
mitigation measures aimed at improving contractors’ performance and
enhancing timely project completion. These measures include payment of
advances for mobilization and material procurement, bonus payments as
an incentive for early completion, assistance to procure materials, and
579
waiver of damages. This section is an analysis of whether these measures
have been effective or not.
4.3.1 Advance Payments
The standard form of contract used on all the ESSP projects has a
provision for advance payments of 20% of the contract sum to be made to
the contractor at the start of the project. The measure was introduced in
2001 to alleviate cashflow problems faced by many of the contractors
involved in the ESSP projects.
Proponents of the issuing of advance payments to contractors argue that
they are beneficial to the smooth running of projects as they help forestall
delays by decreasing the contractor’s financial burden during mobilisation,
purchasing of essential materials and hiring of plant and equipment
(Hussin and Omran, 2009). However, in spite of being a well-intended and
useful facility, advance payments are often ineffective as a long-term
measure for improved construction industry performance. In Botswana,
Adolwa (2002) found that both the contractors and the body administering
the advance mobilization loan to the contractors believe the cash advance
facility is important and effective. However, the biggest factors negatively
influencing the loan effectiveness was misuse of the money and general
lack of management skills to effectively utilize it.
4.3.2 Bonus Payments for Early Completion
Another unique feature of the ESSP projects is the inclusion of a bonus
clause in the conditions of contract. The clause entitles contractors to a
bonus of 2% of the contract sum per week, for every week or part thereof
that they complete the works before the date for completion, up to a limit of
10% of the contract sum. When projects are completed before the date for
completion, consultants involved on the ESSP projects are also entitled to
a bonus amounting to 0.25% of the contractor’s bonus amount.
Advocates of incentive schemes argue that incentives such as bonus can
incentivise more contractors to complete their projects before the date for
completion. For instance, Assaf and Al-Hejji (2006) identified the
unavailability of incentives to contractors who complete projects before the
date for completion as one of the root causes for delays in the Saudi
Arabia construction industry. However, the types of incentives were not
identified in the Saudi Arabian study. Others like Odeh and Battaineh
(2002) recommend the provision of training incentives to develop the
human resource capacity in the construction industry in Jordan. The
incentive, they say, could be by way of offering tax deductions on money
spent on training.
Although this feature of the contract is inevitably popular amongst
contractors and consultants, the case study data in Table 4 shows that only
a very small percentage of the contractors actually benefit from it.
580
Table 4: Percentages of Bonus recipients
Construction
Contracts awarded Contracts with Bonus
Period
2003–2004 17 2 (12%)
2004–2005 53 12 (23%)
2005–2006 41 12 (29%)
2006–2007 29 9 (31%)
2007–2008 44 4 (9)
Total 184 39 (21%)
Source: EIMU; used with permission
Inevitably, the actual contractors who managed to earn bonuses in each of
the periods under consideration were large, well established construction
companies. Since the ESSP scheme mainly employs small and medium
size construction firms, it seems that the bonus facility has, so far, not been
beneficial to them. This seems to defeat one of the core purposes of the
bonus scheme, which was to help develop contractors’ capacity. Arguably,
the sums of money spent by the client in this manner may be better spent
in others ways such as providing training to least performing contractors.
4.3.3 Assistance to Procure Materials
There is divided opinion from the various stakeholders as to whether the
client should assist the contractors to procure materials. Contractors on
ESSP projects may request the client for financial assistance to pay for
materials directly to suppliers. In cases where a contractor is experiencing
cash flow problems and has no credit facilities with suppliers, such a
measure on the part of the client may be essential to ensure that progress
of the works is not hindered. However, such measures may not be useful in
developing financial prudence and long-term capacity of contractors. On
the contrary, the result may be perpetual contractor dependence on clients
and perpetual poor management finances and projects.
4.3.4 Waiving liquidated damages
Based on case study data, Table 5 below further highlights the extent of
project delivery failure in the period under review, with specific emphasis
on the enforcement of damages and the awarding of bonuses for early
completion.
581
Table 5: Enforcement of liquidated damages and awarding of
bonuses
Year Late projects Damages applied Damages waived Terminated Contracts
2003-04 11 (65%) 0 (0%) 8 (73%) 3 (27%)
2004-05 38 (72%) 16 (42%) 22 (58%) 0 (0%)
2005-06 20 (49%) 7 (35%) 13 (65%) 0 (0%)
2006-07 15 (52%) 7 (47%) 8 (53%) 0 (0%)
2007-08 27 (61%) 2 (7%) 25 (93%) 0 (0%)
Totals 111 32 (29%) 76 (68%) 3 (3%)
(Source: EIMU; used with permission)
Out of all the delayed projects, less than one-third (29%) were subject to
liquidated damages, while more than two-thirds (68%) had the damages
waived in spite of the projects being delivered late. The client’s rationale for
waiving the liquidated damages clause is to prevent further financial
burden on the contractors. The argument is that a contractor who fails to
complete a project within the contract duration may already be under
financial difficulties due to cash-flow problems. As such, penalising them
with liquidated damages would simply make the situation worse.
However, it can be argued that the client’s approach to project
management, in particular the failure to enforce contract conditions, may
be contributing to perpetuating poor project performance on ESPP projects
in Malawi. Such a ‘generous’ gesture of routinely waiving liquidated
damages for delayed projects may be counterproductive for construction
industry development in Malawi in the long run. Contractors must be aware
that by signing a contract to execute work in a given period of time, they
need to be responsible enough to fulfil that commitment. Failure to fulfil
their commitment should result in enforcement of the relevant contractual
provisions.
5.0 CONCLUSIONS
Although the problems experienced by Malawi’s educational infrastructure
projects may not be unique, the extent of delays and poor project
management is cause for concern. The client’s initiatives in instituting
measures to assist contractors to complete projects within the stipulated
contract period do not seem to be adequate or universally successful. In
582
fact, it can be argued that they may simply be perpetuating dependency
and irresponsible behaviour on the part of some contractors.
While the use of citizen construction firms is commendable, capacity
building must go beyond that to address fundamental issues of wider
construction industry development. The role of vibrant built environment-
related professional bodies and the National Construction Industry Council
(NCIC) in raising standards in the Malawian Construction Industry is
crucial, failure to which many parts of the industry will continue to
consistently underperform. Structural changes may be required to
modernise practice at industry level as recommended by Rwelamila
(2002). Other areas that will deliver some gains include training and
professional development for both contractors’ personnel as well as
consultants responsible for the supervision and implementation of these
projects.
Significant improvements and prudence in contract management are
required in Malawi, especially in the delivery of construction projects that
are donor-funded. Public opinion in the UK is increasingly becoming fragile
and divided regarding the government’s consistent funding of overseas aid
projects such as the ESSP scheme. If such schemes are not seen to be
delivering value for UK taxpayers, this may put negative pressure on future
financial commitment for overseas aid projects.
The paper serves as a platform for further research to identify and
critically appraise the causes of delay, with a view to determine the most
effective measures for mitigating them.
6.0 REFERENCES
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585
ASOCSA2011-50
Assessment of emotional intelligence
training provided to junior project
managers in the construction industry
Wiese, S.F.1 and Zietsman R2
Department of the Build Environment, Cape Peninsula University
of Technology, South Africa
1
[email protected], Tel No. +27-21-9596631
2
Lecturer,
[email protected], Tel No. +27-21-9538400
ABSTRACT
Purpose: The purpose of this research is to gain an understanding of
Emotional Intelligence (EI) and its role in construction project management.
Furthermore, this research aims to determine when, and to what extent will
construction organisations begin treating emotion seriously in their training
and development programmes as well as in the project management
process.
Methodology: The design of this research makes use of a quantitative
approach and the methodology applied is a survey that involves the
collection of quantitative data via a questionnaire. The primary focus, in
terms of stakeholders, is located in the human resource department or the
training division within a construction organization, depending on the
internal structure of each organization. Personnel e.g., training co-
ordinators, human resource managers or the person responsible for
training within relevant departments was specifically targeted.
Findings: The main finding of this research was that all the construction
organizations in the Western Cape provide poor training, in all of the EI
competencies listed in the questionnaire, to their junior project managers.
This argues that the opportunity to develop EI competencies in junior
project managers is not very good and alternative research must
investigate what the situation is at educational institutions, e.g. to what
extent do they provide EI competencies in their curricula.
Limitations: The field of study is limited to the Western Cape. The value of
this paper is the awareness it will create in the industry regarding emotional
intelligence.
Proceedings 6th Built Environment Conference 31 July -2 August 2011
Assessment of emotional intelligence training provided JHB, South Africa
to junior project managers in the construction industry N:978-0-86970-713-5
586
Keywords: Emotional intelligence, junior project managers, training,
construction organizations.
1. INTRODUCTION
The attention Emotional Intelligence enjoy today, evolved from works by
psychologists as early as 1920. Thorndike proposed a model of intelligence
that not only included intellectual competencies, but also what he termed
ʻsocial intelligenceʼ, defined as ʻthe ability to understand and manage men,
women, boys and girls to act wisely in human relationsʼ (Thorndike
1920:228). Other theorists such as Gardner (1983:239) were convinced
that factors, other than IQ, contributed to individual success. Wechsler
(1985:17) made valuable contributions in the definition of intelligence, but it
was only in 1990 that Salovey and Mayer invented the term “Emotional
Intelligence” (EI). Five years after Salovey and Mayer published their work,
Daniel Goleman published his first best seller “Emotional Intelligence: Why
does it matter more that IQ” in 1995, followed by other books that was just
as popular. Goleman (1995:10) argued that emotional competencies are
the main factor influencing success in the life of any person, he claims that
EI contribute 80%; where the trusted measured of cognitive ability IQ, only
contribute 20% towards life success.
Golemanʼs work presented this EI concept in a persuasive, easy reading
and convincing way. Although Goleman did not discover the concept, he
did made the term EI more accessible to the layman, by making use of
simple language and telling real life stories of EI applications. Goleman et
al. (2002:39) made use of Salovey and Mayer (1990:191) EI model and
mixed in many other personality traits that allowed the breakdown of EI
competencies which can now be linked with performance and job
satisfaction in project management and other fields.
Following Golemanʼs success, other researchers endorsed and added to
Golemanʼs EI model, this lead to uncertainty and serious academic
discussions among researchers around the validity of the EI concept, in
part because EI are defined in too many ways (Law et al., 2004:438; Mayer
et al., 2008:503). In defence Golemanʼs work was recently described as “a
journalistic render of Emotional Intelligence” (Mayer et al., 2008).
2.0 DEFINITION OF EMOTION AND INTELLIGENCE
Goleman (1995:6) explains: the root of the word emotion is motere, the
Latin verb "to move", plus the prefix "e-" to connote “move away", in other
words emotions are in essence, impulses to respond.
Wechsler (1958:17, cited in Salovey & Mayer, 1990:186) stated,
“Intelligence is the aggregate or global capacity of the individual to act
Proceedings 6th Built Environment Conference 31 July -2 August 2011
Assessment of emotional intelligence training provided JHB, South Africa
to junior project managers in the construction industry N:978-0-86970-713-5
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purposefully, to think rationally, and to deal effectively with his
environment”.
3.0 IMPORTANCE OF EI IN CONSTRUCTION MANAGEMENT
Despite the emphasis on EI in the recent literature, there have been
relatively few empirical studies on EI conducted within a construction sector
context and so little is known of why EI competencies are so important to
those choosing construction management careers (Mo & Dainty,
2007:110). To address this enquiry; research identified many factors that
suggests the importance of EI in construction management of which,
among other, only two are listed below. According to Druskat & Druskat
(2006:88):
As projects are temporary, project-based relationships often exist
only for the length of the project, a subproject, or even a checkpoint or
progress meeting. Project managers and professional team members
frequently move quickly from one project onto the next. Therefore, building
new relations through the use of interpersonal skills is very important to
create a working environment that becomes quickly productive. EI
competencies such as self-confidence, emotional self-control, transparency
and empathy can help project managers to develop trust swiftly.
Each project is unique with factors that would not have been
considered before. In many cases projects commences without designs
being finalised which result in changes to design throughout the projects
life. This induces more stress on – time schedules, budgets, etc., and
eventually on project managers. EI competencies in the self-management
sub-category, such as self-control and adaptability may be necessary.
Without constructive relationships between the professional team,
construction team and other stakeholders, these emergent challenges will
be more difficult to overcome, increasing risk and cost to the project.
Construction sites must be highly organized and managed by competent
people to ensure optimum performance. All the above mentioned factors
demand high levels of EI in addition to traditional management abilities
which leading practitioners possess (Mo & Dainty, 2007:113).
Performance, effective leadership and job satisfaction are central to
construction project managers and their organizations for their success
(Dulewicz & Higgs, 2003:205; Law et al., 2004:494; Lopes et al., 2006:137).
This research poses that, if EI competencies determine job satisfaction and
performance in the individual project manager that in turn, contributes
positively to an organization, surely it must be beneficial in the long term for
an organization to train its PMʼs in EI competencies.
3.1 FOUR-BRANCH MODEL OF EMOTIONAL INTELLIGENCE
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To ensure the validity of this report, this research considered EI models
accepted by the originators of the EI concept viz.: Mayer and Salovey.
Mayer & Salovey (2008:505) states that: “their four-branch model of EI
provides one conceptually coherent approach”. They redefine their first
definition of EI as:
a) the ability to perceive emotions in one self and others accurately,
b) use emotions to facilitate thinking,
c) understand emotions, and
d) manage emotions so as to attain specific
goals. These four branches are illustrated in Figure 3.1
Emotional Intelligence
Managing emotions so as to attain specific goals
Understanding emotions, emotional language, and the signals
conveyed by emotions
Using emotions to facilitate thinking
Perceive Emotions accurately in oneself and others
Figure 3.1: The Four-Branch Model of Emotional Intelligence (Mayer & Salovey, 1997:10)
3.2 THE IMPORTANCE OF EI IN PROJECT MANAGERS AND THEIR
ORGANIZATIONS
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3.2.1 PRODUCTIVITY IN TEAMS
Apart from the unique physical attributes to construction, relationships
between people exist as with any other project. According to Druskat &
Druskat (2006:88) as projects are temporary, project-based relationships
often exist only for the length of the project, a subproject, or even a
checkpoint or progress meeting. Project managers and team members
frequently move quickly from one project onto the next. Therefore, building
new relationships through the use of interpersonal skills is very important to
create a working environment that becomes quickly productive. Studies in
how EI correlates with better relationships in business settings have
confirmed that managers with higher EI are better able to create productive
working relationships and to demonstrate greater personal integrity (Rosete
& Ciarrochi, 2005:392). Specific EI competencies such as self-confidence,
emotional self-control, transparency and empathy can assist PMʼs to create
a working environment that becomes quickly productive (Druskat &
Druskat, 2006:88).
3.2.2 MANAGING UNCERTAINTY IN PROJECTS
Each project is unique with factors that would not have been considered
before which are prone to evoke uncertainty and risk (op. cit.). It is for this
reason, among many other, that constructive relationships between the
client, professional team and other stakeholders must exist to overcome the
challenges associated with uncertainty (Druskat & Druskat, 2006:88). EI
competencies such as optimism, adaptability, initiative and organizational
awareness will enable the project manager to effectively deal with
unexpected changes (ibid.).
3.2.3 STRESS MANAGEMENT
In many cases projects commences without designs being finalised which
result in changes to design throughout the projects life. This induces more
stress on time schedules and programs resulting in project managers
struggling to cope in such a demanding setting. Druskat & Druskat
(2006:89), suggests that EI competencies in the self-management sub-
category, such as self-control and adaptability may be necessary to
prepare the project manager for unexpected challenges.
3.2.4 CROSS-CULTURAL ISSUES
Work relationships are frequently cross-cultural and interaction between
team members needs to be stimulated through social interaction and team
discussions (Kokt, 2003:82). Relationships in construction management are
regularly cross-cultural, client-to-designer-to-contactor and orgaization-to-
organization. The natural tendancy of humans to better cooperate with its
cultural counterpart and rejects those who are different creates risk
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(Druskat & Druskat, 2006:89). EI competancies such as empathy,
organizational awareness and service orientation must be high in order to
overcome this tendency (ibid.).
3.3 THE RELATIONSHIP BETWEEN EI AND LEADERSHIP IN
CONSTRUCTION ORGANIZATIONS
In their research to determine if a relationship exsits between EI and
leadership behavior Butler & Chinowsky (2006:125) concluded that, after
examining 155 construction executives, not only does a relationship exist
but a strong one. Their study also showed the higher a individual move up
in his organization the more important EI competenncies become, this
relationship has significant impact for constrcution companies. “Specifically,
as organisations prepare the next generation of executives, the criteria for
selection as well as the development of the selected individuals should be
expanded to recognize the value of EI and leadership traits” (ibid.).
4. RESEARCH APPROACH
A quantitative research approach was taken with the objective to establish
to what extend construction organizations regard the importance of EI their
training and development programs for junior project managers.
Quantitative research refers to research that is concerned with quantities,
measurements and answers the “how” questions in research (Biggam,
2008:86). Factors that controbuted to determine the quantitative nature of
this reasearch was a combination of:
A survey research strategy that was selected,
The data required to adress the reseach objective namely to
determine to what extent training in EI skills development is
provided to project managers, on junior level, employed by
established construction companies in the Western Cape, which
are conserned with measurement of quantities and asking the
question of “how” much training are provided, and a questionnaire
that are used for data collection.
4.1 SAMPLE SELECTION
“Established” construction organizations are identified, to isolate the
variables of interest via the following procedure: Historic tender data,
particular to construction companies, operating in the Western Cape who
tendered on construction projects during the last 29 months (January 2008
– March 2010) was obtained via the tender database as published on the
internet. 60 Construction organizations were identified which represents the
total population.
The 60 construction organizations identified were categorized
according to tender price through the use of a standard computer
programme, Microsoft Excel®. The construction organizations that
submitted tenders with a tender price greater than R 32.5 million were
considered for this research. This grading designation of R 32.5 million and
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more, selected to identify the sample unit, was identified by CIDB, (2010:1)
to be a typical representation of organizations that are recognised as
established contractors. The tender lists were reduced to 15 construction
organizations and were compared with construction organizations that are
actively registered under general building (GB) class of works and
contractors grading designation 8 & 9 with the CIDB to ensure the reliability
of the identified sample. 19 Construction organizations were identified that
meets the aforementioned criteria and these organizations represent the
sample units of the target population.
A questionnaire was prepared to determine the following:
The extent EI skills training are provided to junior project managers
employed by 19 of the largest construction organizations.
The views of the construction organizations on the importance of EI
skills in project managers within their organization.
The level construction organizations prefer to introduce EI
competencies training to project managers.
5.0 SURVEY RESULTS (ONLY SPECIFIC TO EI TRAINING PROVIDED)
In this section the participants was asked to indicate in which of the listed
EI competencies,
Table trainingof relevant
5.1:-Descriptive statistics and topersonalʼs
what extent, areoncurrently
responses provided
to
self-awareness.
junior construction managers in their organization. Descriptive statistics of
the relevant personalʼs responses are presented in tables and graphs Percentage of
below. Variable Category Frequency
total (o)
1. Self-awareness
1.1 E motional self-awareness Poor 13 81.3%
Average 2 12.5%
Good 1 6.3%
E xcellent 0 0.0%
1.2 Accurate self-assessment Poor 12 75.0%
Average 4 25.0%
Good 0 0.0%
E xcellent 0 0.0%
1.3 S elf-confidence Poor 11 68.8%
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Assessment of emotional intelligence training provided JHB, South Africa
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E xcellent 0 0.0%
Total Participants 16
592
According to the participants:
Of all the competencies listed, 83.3% of the construction
organizations in the Western Cape provide poor training on emotional self-
awareness.
Self-confidence received the most attention in training rooms, when
only considering competencies associated with self-awareness; however
Figure
the 1: Self-awareness
amount of attention is at the lower end of the scale (30%).
CONCLUSION
The overall aim of the research was to gain an understanding of EI and its
role in construction project management. Furthermore, this research aimed
to determine when, and to what extent will construction organisations begin
treating emotion seriously in their training and development programmes
and project management process.
After considering the review of related literature and comprehensive data
analysis utilising inferential statistical analysis, the core finding of this
research is that: all the construction organizations in the Western Cape
provide poor training, in all of the EI competencies listed in the
questionnaire, to their junior project managers.
Opportunity to develop EI competencies in junior project managers is not
very good and alternative research must investigate what the situation is at
educational institution, e.g. to what extent do they provide EI competencies
in their curricula.
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6. REFERENCES:
Biggam, J., 2008. Succeeding with Your Masterʼs Dissertation.
Berkshire: McGraw-Hill.
Butler, C.J. & Chinowsky, P.S., 2006. Emotional Intelligence and
Leadership Behavior in Construction Executives. Journal of
Management in Engineering, 22(3), pp.119 - 125.
Chowdhury, S., 2000. Management 21C. London: Pearson Education.
Druskat, V. & Druskat, P., 2006. Applying Emotional Intelligence in Project
Working. In
Pryke, S. & Smyth, H. The Management of Complex Projects: A
Relationship Approach. Oxford: Blackwell Publishing. pp.78-96.
Dulewicz, V. & Higgs, M., 2003. Leadership at the Top: The Need for
Emotional Intelligence in Organizations. The International Journal of
Organizational Analysis, 11(3), pp.193 - 210.
Gardner, H., 1983. Frames of Mind. New York: Basic Books.
Goleman, D., 1995. Emotional Intelligence: Why can it matter more than
IQ. London: Bloomsbury.
Goleman, D., Boyatzis, R. & McKee, A., 2002. Primal Leadership. Boston:
Harvard Business School Press.
Kokt, D., 2003. The impact of cultural diversity on work team performance.
Team Performance Management, 9(3/4), pp.78 - 83.
Law, K.S., Wong, C.-S. & Song, L.J., 2004. The Construct and Criterion
Validity of Emotional Intelligence and Its Potential Utility for
Management Studies. Journal of Applied Psycology, 89(3), pp.483 -
496.
Lopes, P.N. et al., 2006. Evidence that Emotional Intelligence is related
to Job Performance and Affect and Attitudes at Work. Psicothema,
18, pp.132-138.
Mayer, J.D., Salovey, P. & Caruso, D.R., 2008. Emotional Intelligence: New
Ability or Eclectic Traits ? American Psychological Association, 63(6),
pp.503 – 517.
Mo, Y.Y. & Dainty, A.R.J., 2007. Measuring and Enhancing the Emotional
Intelligence of Construction Management Students. Journal of Education
in the Build Environment, 2(1), pp.110 - 129.
Pryke, S. & Smyth, H. The Management of Complex Projects: A
Relationship Approach. Oxford: Blackwell Publishing. pp.78-96.
Rosete, D. & Ciarrochi, J., 2005. Emotional intelligence and its relationship
to workplace performance of leadership effectiveness. Leadership and
Organization Development Journal, 26, pp.388 - 399.
Salovey, P. & Mayer, J.D., 1990. Emotional Intelligence. Imagination,
Cognition and Personality, 9(3), pp.185 - 211.
Thorndike, E.L., 1920. Intelligence and its use. Harperʼs magazine, 140,
pp.227 - 235.
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Wechsler, D., 1985. The Measurement and Appraiseal of Adult Intelligence.
Baltimore: Williams & Wilkins.
Construction Industry Development Board. 2010. Woman in Construction
Excellence Award. http://www.cidb.org.za/best_contractor/default.aspx.
[12 September 2010]
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ASOCSA2011-71
Application of Fast-Tracking Practices
on Construction Projects – Evidence
from South Australia
Rabia Nassereddine1 and Nicholas Chileshe2
1
[email protected],
[email protected] 1&2
School of Natural and Built Environments, University of South
Australia, City East Campus, GPO Box 2471, Adelaide, South
Australia 5001, Australia
ABSTRACT
Purpose: This study seeks to establish the reasons for implementing fast-
tracking practices, and explore their impact on construction projects
deliverables.
Design/methodology/approach: The data was collected using a survey
sample of a cross-section of 45 construction stakeholders in South
Australia. 4 interviews were also conducted with stakeholders. Quantitative
response data was subjected to descriptive analysis, whereas content
analysis was used for the qualitative data.
Findings: The results suggest that the two fast track practices as applied
affected project deliverables differently. Overlapping design with the
construction stage was found affect the quality of the projects whereas
ʻaccelerationʼ practices affected safety more than quality. Poor
documentation was identified as one of the factors contributing to poor
safety when applying ʻoverlappingʼ practice. The decision on whether to
apply fast track practices was found to be dependent on the extent and
type of construction projects.
Originality /value: This study has the value added potential of identifying
areas of concern prior to site establishment and establishing measures for
managing the additional works thereby raising the probability of project
success relative to increased quality of construction, enhanced safety
reduced cost of the project.
Keywords: Procurement, fast track projects, design and build contracts,
project performance, survey, construction industry, South Australia
1. INTRODUCTION
The study is predominantly focussed upon the impacts of applying fast
track practices to a construction project under a design and construct
contract and the consequences incurred on project deliverables in
particular cost, quality and safety requirements during the construction of a
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project. Kasim et al. (2005) define the concept of fast-track system as the
running of the design and construction processes of a construction project
concurrently or simultaneously. Fast-track construction practices can take
various forms such as ʻaccelerationʼ and ʻoverlapping designʼ.
Acceleration is a head contractor focussed approach of increasing
resources including night shift and tradesmen on-site at any particular time
to finish sooner. The ultimate goal is to increase productivity, efficiency, and
resources management thereby expediting the completion of construction
projects.
Anecdotal evidence suggests that overlapping the design phase
with the construction phase under design and construct contracts which are
becoming increasingly popular within the South Australian construction
industry reduce the duration of a project life cycle. The move towards such
practices is being forced by a defined practical completion date or the belief
of reduction in cost through decreased overhead expenses paid on duration
commonly called preliminaries. Furthermore, despite the advocated
benefits of applying such practices as highlighted in literature (Fazio et al.
1988a), the application is affected due to the incorrect assumptions made
regarding the problem of applying fast tracking practices. For example, it is
often said that the overall quality of a project is reduced, unsafe behaviour
is more prevalent from the push-push nature of the project, and cost
overruns are more common.
In order to encourage the application of such fast-track
practices, there is a dire need of formally exploring or investigating the
benefits through raising the awareness and consequences of applying fast
track practices within the South Australian construction industry. This paper
attempts to address this problem through highlighting potential
consequences of fast tracking a project, and exploring how such practices
affects project deliverables. The paper also identifies the main reasons for
implementation of such fast-track practices by the construction
stakeholders employing design-and build contracts. The paper commences
with a brief review of ʻfast-trackʼ construction literature. This is followed by a
discussion of the methodological approach adopted, and then presents the
findings. Finally, the implications and conclusions are drawn in the last
section.
2. LITERATURE REVIEW
An extensive literature review on the concepts of ʻfast track constructionʼ
and ʻdesign and constructʼ suggest that a lot has been written about them
individually. However, there is limited literature which defines the concepts
as integrated. This provides the basis for the provision of clearer definition
of the concepts prior to any analysis or review of projects. Meyers (1981)
defined both ʻfast track constructionʼ and ʻdesign and constructʼ as
processes. They have both been suggested as a means of accomplishing
an end namely the completion of a particular construction project (Squires
1983). However, this loosely defines fast track construction but lacks some
substance in regard to its difference to traditional build projects.
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A somewhat more detailed description found in the literature review
states that under a fast track approach the owner outlines for the architect
the general criteria for the project. The architect then prepares, in varying
degree of detail, basic design documents, schematic, heating, ventilation,
ventilation and air conditioning, electrical preliminary structural drawings.
From these incomplete drawings, the contractor estimates the cost of
construction and then proceeds toward further firm negotiations or bidding
(Meyers, 1981). From this basic definition, the inference is that construction
progresses while design is in the process of being finalised, and this is
where design overlaps construction thus minimising start time on site.
Briefly stated, fast tracking compresses the project schedule by running
design and construction phases simultaneously (Barbara, 2002).
Fast-track construction is based on the principles allowing early
contractor involvement (ECI); therefore choosing a procurement method to
facilitate this is essential. Generally occurs in the form of design and
construct, however can be undertaken under many other procurement
methods including Management Contracting, Alliance Contracting and even
Partnership contracting. It is based on the principle of running the design
simultaneously with the construction phase based on the presumption that
the reduced life cycle of the project will significantly reduce final cost of the
project. Project duration is compressed by overlapping work packages, but
fast tracking further overlaps design and construction (Fazio et al. 1988).
With this approach design work often ends up being done on a rushed
basis. Inevitably accelerated drawings and specification are often prepared
hurriedly, leaving room for a greater margin of errors and omissions (Fazio
et al. 1988). These errors and omissions in documentation lead to many
consequences on site, further investigation is recommended to explore
whether these omissions impact the project deliverables stated in this
research.
Design and construction practice of overlapping can shorten the
project duration and reduce costs, as initially planned (Pena-Mora and
Park, 2001). A study by Chan (1999) as citied in Chan and Chan (2004)
found that most constructed project in Hong Kong as developed on fast
track schedule, were completed within two to three years. Conversely, it
can also delay the schedule and increase costs for various reasons. Whilst
overlapping design and construction working in together simultaneously,
errors and or omissions in design documentation take place, when these
occur as the design is only slightly in front of the construction phase can
lead to other issues often requiring re-work.. It has been suggested that
increasing the overlapping degree between the design and construction
created more changes in design and construction than those in the
sequential method, which led to delays and counterbalancing the time
reduction achieved by the increased overlapping (Pena-Mora and Park,
2001).
Meanwhile, there is another phenomenon found in the fast-tracked
design work that is not necessarily found on the traditional method—
everyone in the design process often makes allowances for unknowns to
avoid possible impacts and changes (Tighe 1991). For instance in the early
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– Evidence from South Australia ISBN:978-0-86970-713-5
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stages of design where documentation is poor and time is critical several
measures are taken to expedite the process such as making assumptions
of items and often over sizing to ensure to decrease risk as there is no
time to research and identify what exactly is required. This over sizing
practice increases protection, but at the same time may cause a substantial
increase in the project cost due to inefficient use of resources (Pena-Mora
and Park, 2001). It was found that fast track construction is more suited to
non specialised building types with a repetitive nature and standard
construction, allowing for a momentum to build throughout the construction
phase. Throughout the literature it was found that the reduced time spent
on the completion of documentation severely affected rework on site
stemming from construction issues. Often small design error or omissions
when found are far more severe affect as implementing corrective action
and increasing resources required.
3. RESEARCH METHODOLOGY
A questionnaire was developed to establish the reasons for implementing
fast-tracking practices, and explore their impact on construction projects
deliverables within the South Australian construction related organisations.
3.1 Instrument
The questionnaire was divided into five parts. The first part dealt with the
general demographics of the respondents such as sector of organisation,
length of experience, and exploration of fast tracking practices. The second
part of the questionnaire was composed of four questions focussed on
identifying the effect of applying over lapping techniques on the cost of the
project. Section three dealt with the effect of fast track practices on safety
as a project deliverable. The frequency of applying such practices was also
sought. ʻOverlapping designʼ and ʻacceleration techniquesʼ effect on quality
of the construction projects was the basis of section four. Finally, the last
section (five) dealt with the relationship between the ʻquality of designʼ and
associated project deliverables of time and budget. The type of questions
sought ranged from open ended to those of seeking perceptions. The
impact of the fast-tracking practices on projects deliverables such as cost,
quality and safety were measured using a four-point scale as follows: 1
(never), 2 (not often), 3 (often), and 4 (always). The analysis mostly
included descriptive statistics to depict the frequency distribution and
central tendency of responses to fixed response questions.
3.2 Pilot Survey
To fit into the South Australian construction conditions, a pilot study was
conducted. The professionals were asked to examine the questions, try
answering them and make inputs. Piloting is necessary as it is very difficult
to predict how respondents will interpret and react to questions (Gill and
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– Evidence from South Australia ISBN:978-0-86970-713-5
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Johnson 1991). Some very constructive suggestions and corrections were
raised. The main area of ambiguity was that the majority of the questions
related to fast-track practices as a broad term and no clear method or
technique was defined. Furthermore, the respondents stated that the
results of the questionnaire may differ depending on which fast-track
practices were being implemented. As a result of the pilot study, the
questionnaire was revised to specify whether it was the practice of
ʻoverlapping design stage with the construction stage ʼ or application of
ʻacceleration techniques during constructionʼ. The revisions provided the
participants with a clear focus and direction allowing them to make
informed responses.
3.3 Survey Administration
The questionnaire was distributed using two methods, namely postal
survey and electronic mail. The summary of the responses is shown in
Table 3.1. As seen from Table 3.1, of the majority (70) of the
questionnaires were sent out using the snowball technique in hard form to
the stakeholders of a design and construct project in South Australia.
Table 3.1 Summary of survey responses
Method Sent Out Returned Response Rate
(%)
Post survey 70 40 57.14
Electronic 20 5 25.00
Sub Total 90 45 50.00
Forty questionnaires were received. These were submitted or returned to a
questionnaire box located in the site office, thus a 57.14% postal response
rate was achieved. On the other hand, of the twenty questionnaires which
were sent electronically, only 5 were returned. The combined overall
response rate was thus 50.0% (see Table 3.1). The high response rate
demonstrates the effectiveness of the hard copy postal survey. The
response rate was therefore deemed adequate for the purpose of data
analysis. Akintoye and Fitzgerald (2000 cited in Odeyinka et al, 2008)
argue that this is way above the norm of 20-30 percent response rate in
most postal questionnaire of the construction industry. As observed by
Sekaran (2003), one of the disadvantages of electronic questionnaires is
that the respondents must be willing to complete the survey.
3.4 Interviews
In additional to the questionnaire, 4 face-to-face interviews were also
conducted with various stakeholders of the construction industry. These
were composed of a project manager, construction managers,
programmers and a cost consultant. The purpose was to explore the
benefits associated with implementing fast-tracking practices. The selection
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was based upon their response to agree on having further discussion on
the topic in the questionnaire survey.
3.5 Characteristics of respondents
The demographic characteristics of the respondents by sector of the
organisation given in Table 3.2.
Table 3.2 Sector of respondentsʼ organisation
Sector and role Frequency % response
Architectural and Engineering 10 22.2
Construction 13 28.9
Subcontractor 11 24.4
Cost Consultant 8 17.8
Others 3 6.7
Subtotal 45 100.0
As can be seen from Table 3.2, the majority (28.9%) of the respondents
were drawn from the construction sector. This is followed by 11 (24.4%)
Sub contractors. The ʻothersʼ were program managers and line manager.
Nearly a quarter (22.2 per cent) of the respondents was from Architectural
and Engineering sector, whereas the minority (6.7 per cent) that selected
ʻothersʼ were mostly programmers and draughtsmen. The results also
achieved the intentions of the study as the question related to the sector
and role was aimed at dividing the construction industry into segments;
these [segments] were created to understand different perceptions among
the various professionals in the construction industry who are the major
stakeholders of a construction project obviously excluding the client. Table
3.3 presents information on the respondentʼs length of experience in the
construction industry.
Table 3.3 Construction industry experience
Range (no. of years) Frequency % response
1-5 6 13.33
5 -10 16 35.56
10 -15 12 26.67
More than 15 11 24.44
Subtotal 45 100.0
As can be seen from Table 3.3, the respondents surveyed did have a wide
range of experience in the construction industry. More than 86 percent of
the respondents had more 5 years of experience. This indicates that the
data gathered has some substance behind it as the majority of the
respondents had previously worked on construction projects that utilises
the fast tract construction practices. Furthermore, it enhances the validity of
the data as collected. To ascertain the length of experience of the
respondents with the sectors in which they operated, a cross tabulation
was conducted. Table 3.4 presents the summary of the length of
experience * sector tabulation.
Table 3.4 Construction industry experience * sector
LECI (years)/ A&E C CC SC O Total
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Sector
1-5 1 4 0 1 0 6
5 -10 5 2 5 3 1 16
10 -15 4 3 3 1 1 12
More than 15 0 4 0 6 1 11
Subtotal 10 13 8 11 3 45
Notes: A & E = Architectural and Engineering; C = Construction; CC = Cost
Consultants; SC = Sub-Contractor; O = Others; LECI = Length of Experience in
Construction Industry
As can be seen from Table 3.4, the sector of the industry surveyed with the
most experience was sub-contractors with 6 respondents having more than
15 years of experience. In second place were respondents drawn from
construction organisations with almost a third (31%) of its respondents
falling into the ʼmore than 15 yearsʼ of experience category. This finding
confirms richness of the data as it will aid in accurate responses to
questions where on-site experience is necessary including safety and
quality in construction issues associated with applying fast-track practices.
4. ANALYSIS OF DATA & DISCUSSIONS
The following sub section presents the analysis of data and discussions on
the perception of the construction stakeholders relative to whether
overlapping the design stage with the construction stage had adverse
outcomes on project deliverables of cost, quality and safety.
4.1 Impact of overlapping the design stage with the construction
stage
Table 4.1 summarises the frequency of response to the effect of
overlapping on project deliverables.
Table 4.1 Effect of overlapping
Type of effect Frequency % response
Always 16 35.56
Often 20 44.44
Not Often 9 20.00
Never 0 0.00
Subtotal 45 100.0
The following question was posed: How often do you believe overlapping
design with construction leads to adverse outcomes on project deliverable
such as; cost, quality and safety? As can be seen from Table 4.1, it is
quite visible that the industry perception is poor with 80% (36) of
respondents stating overlapping design with construction had adverse
effects. Similar sentiments were identified from the interview process with
some respondents acknowledging that most negatively affected areas in
fact impacted on other project deliverables such as cost, quality and safety.
In particular, it was suggested that poor design documentation had a ripple
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– Evidence from South Australia ISBN:978-0-86970-713-5
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effect extending to the majority of project deliverables being reviewed. This
finding somehow contradicts the view of one Project Manager who noted
the following benefits:
Fast tracked projects are a good idea if the contract is typically Design and
Construct (D&C) and construction starts on 85% or higher documentation.
If this is done then construction will fly as long as good contractors are
available and money is spent to accelerate construction via technology
proper planning and adequately resourced project. Also need right
contractors with good relationships with subcontractors and suppliers. -
Project Manager
The above suggestion implies that other factors such as ʻgood
relationshipsʼ, ʻproper planningʼ and ʻavailability of resources such as
money and timeʼ need to be taken into consideration in order to achieve the
benefits of fast-tracking practices. To ascertain the breakdown of
respondents who responded ʻalwaysʼ and ʻoftenʼ, cross tabulation was
conducted and the Table 4.2 presents a summary according to the
construction sector.
Table 4.2 Participant breakdown of respondents
Sector / Role Frequency % response
Architectural and Engineering 8 22.22
Cost Consultant 5 13.89
Construction 12 33.33
Sub contractor 9 25.00
Other 2 5.56
Subtotal 36 100.0
As can be seen from Table 4.2, the majority (21 out of 36) 58.33% of the
respondents were drawn from construction and sub-contracting
organisations as they are more likely to deal with the effect of overlapping
the design stage with the construction stage.
4.1.1 Impact of overlapping design with construction on Project
deliverables
Table 4.3 present a summary of the areaʼs most negatively affected by
overlapping design with construction. The respondents were asked to rank
on a four-point scale (Negatively Affected = ʻ1ʼ, and Least Affected = ʻ4ʼ),
the areas they believed to be most negatively affected by overlapping
design with construction.
Table 4.3 Participant breakdown of respondents
Project Deliverable Frequency % response Ranking
Design Documentation 19 42.22 1
Project Quality 13 28.89 2
Construction Cost 11 24.44 3
Safety 4 4.45 4
Subtotal 45 100.0
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As can be seen from Table 4.3, ʻDesign Documentationʼ was the most
ranked as resulting from overlapping design with construction. This can be
attributed to the on-site rectification of design issues.
4.2. Effect on Cost
Figure 4.1 summarises the responses regarding the impact of fast-track
practices on the reducing the overall project cost. As can be seen from
Figure 4.1, the majority (60%) of the respondents agreed that overlapping
design stage with the construction stage reduced the overall project cost.
On the other hand, 57.78% stated that acceleration, through increasing
resources and productivity did not lead to an overall reduction of the project
cost.
Figure 4.1 – Does Implementing Fast-Track Practices Reduce Overall Cost?
This was further supplemented by information from the interviews which
indicated that acceleration could sometimes be utilised not to reduce the
cost, but to enable the completion of a project which sometimes forced by
an inflexible date, where project completion was not negotiable. One such
example provides was the construction of a stadium being purpose built for
an event where the date is fixed (i.e. World Cup or Olympics stadia). This
suggests that acceleration might be required to ensure the project meets
programme and is delivered in time. This finding suggests that separating
the two fast track practices and identifying the relationship each has on
negatively affecting the project cost, where overlapping design is seen to
reduce cost is being supported by the literature and interviewees where
acceleration techniques seem to increase cost as the survey data was
analysed.
4.2.1 Lack of information and Increased Construction Cost
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Table 4.4 summarises the frequency of response to the effect of lack of
information on construction costs through over engineering. The following
question was posed: How often do you believe that assumption made
during design from lack of information leads to increased construction cost
through over engineering?
Table 4.4 Impact of Information on Increased Construction Costs
Frequency of belief Frequency % response
Always 9 20.00
Often 23 51.11
Not Often 11 24.44
Never 0 4.45
Subtotal 45 100.0
Analysis of these results indicates that almost 71% of the respondents
found that overlapping the design stage with the construction stage leads to
over engineered structures.
4.3 Effect on Design Documentation
Table 4.5 summarises the effect of fast-tracking practices on design. The
respondents were asked on a four-point scale (Strongly Disagree = ʻ1ʼ,
Disagree = ʻ2ʼ, Agree = ʻ3ʼ, and Strongly Agree = ʻ4ʼ), the extent to which
the quality of design affect a projectʼs capability to be delivered in time and
within budget, and to an acceptable level of quality.
Table 4.5 Influence of the Quality of Design Documentation
Levels of Agreement Frequency % response
Strongly Agree 26 57.78
Agree 11 24.44
Disagree 7 15.56
Strongly Disagree 1 2.22
Subtotal 45 100.0
Analysis of these results indicates that almost 84% of the respondents
found either agreed or strongly agreed that the quality of design will
contribute to the success.
4.3.1 Impact of ʻOverlappingʼ and ʻAccelerationʼ on Project Quality
Table 4.6 summarises the frequency of response to the effect of fast-track
practices on the quality of the project. The following question was posed:
How often do you believe that applying fast-track techniques leads to
reductions in the quality of the project?
Table 4.6 Impact of ʻOverlappingʼ and ʻAccelerationʼ on Project Quality
Overlapping Acceleration
Frequency Frequency % response Frequenc % response
y
Always 8 17.78 4 8.89
Often 23 51.11 31 68.89
Not Often 12 26.67 8 17.78
Never 2 4.44 2 4.44
Subtotal 45 100.0 45 100.0
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– Evidence from South Australia ISBN:978-0-86970-713-5
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Analysis of these result indicates that the majority of the respondents
believe that applying acceleration practices as a fast-track technique affects
the quality of construction project more so than that of ʻoverlapping design
with constructionʼ. This finding was complemented by the interviews in
which several interviewees stated that acceleration can have higher
adverse effects on project quality. The argument put forward was that
increased resources and the push on the project including night shifts and
additional tradesmen on-site at any time could lead to short cuts being
taken. Some other views were also expressed. For example, a project
manager with substantial fast-track experience observed that quality can
severely be dependent on the construction firm delivering the project, with
the appropriate experience, and lessons learnt from previous projects, this
reduction in quality could be minimised with strong emphasis on quality
assurance practices throughout the construction stage mitigating the risk.
This was to some extent dependent on the provision of additional resources
such as supervision and quality managers to control acceleration practices,
where traditionally, these roles are not often as strongly encompassed
where fast-track construction does not exist.
4.3.2 Impact of Time on Practical Completion
Table 4.7 summarises the effect of reducing time frame on the practical
completion date.
Table 4.7 Influence of the Time Frame on Practical Completion
Influence Frequency % response
Yes 9 20.00
No 15 33.33
Maybe 21 46.67
Subtotal 45 100.0
The respondents were asked to select from any of the following three
options: ʻYesʼ, ʻNoʼ, and ʻMaybeʼ, as to whether reducing the time frame to
complete the design of a project always successfully resulted in reducing
the practical completion date.
Nearly a third of those surveyed did not perceive overlapping design with
construction as truly expediting completion of the construction project. This
result contradicts with those obtained from the Interviews. For instance, a
Construction Manager advised that significant benefits such as reductions
in the programme can be obtained in the reduction of practical completion
through application of fast-tracking practices such as overlapping design
with construction. Interestingly, only a minority (20%) of the respondents
thought that it was possible whereas the majority (46.67%) possibly thought
it was feasible to achieve a reduction of the practical completion date
through overlapping.
4.4 Effect on Safety
The following question was posed: How often do you believe that safety
key performance indicators (KPIʼs) including lost time incidents (LTIʼs), near
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– Evidence from South Australia ISBN:978-0-86970-713-5
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misses etc. are higher on projects where acceleration practices are
implemented? The respondents had the following two options: ʻYesʼ or
ʻNoʼ. The results suggest that overlapping the design with construction
does not in fact adversely affect safety, with approximately 64.44% of the
participants responding ʻnoʼ. On the contrary, this is different with the
results regarding acceleration practices where the majority (62.22%) of the
respondents believed that accelerating practices adversely affected safety
during construction. As highlighted by Chan and Chan (2004), safety is one
of the performance criteria of a construction project.Table 4.8 (see
Appendix A) summarises the general comments regarding the application
of fast-track practices as made by the respondents.
5. CONCLUSIONS & IMPLICATIONS
This study investigated the reasons for implementing fast-tracking
practices, and explored their impact on construction projects deliverables. It
was established that fast-tracking construction practices such as
acceleration and over-lapping design contribute to project effectiveness.
Despite the growing importance of such practices, the awareness and
consequences of applying fast track practices have not been formally
explored or investigated. The principal conclusions to be drawn from the
study are as follows:
The two fast track practices as applied affected project deliverables
differently.
Overlapping design with the construction stage was found affect the
quality of the projects whereas ʻaccelerationʼ practices affected safety
more than quality. Poor documentation was identified as one of the
factors contributing to poor safety when applying ʻoverlappingʼ practice.
The decision on whether to apply fast track practices was found to be
dependent on the extent and type of construction projects.
It is further recommended that implementing any type of fast-track practices
that resources and procedures are implemented to manage the increased
pressure on the construction project. If these are not established early in
the construction project may leave the project at risk of increased un-
forecasted cost over-runs, delays and re-work leading to reduced quality of
the construction project as a whole.
Acknowledgements
The material for this paper was extracted from an BSc dissertation in
Construction Management and Economics on ʻthe consequences on fast
tracking a construction project, and what implications it has on cost, quality
and safety under a design and construction contract during construction
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phaseʼ on which R. Nassereddine and N. Chileshe carried out further
analysis. The dissertation was submitted to the School of Natural and Built
Environments, University of South Australia, Australia
6. REFERENCES
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Chapman Publishing Ltd.
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management practices on fast-track construction projects”. In:
Khosrowshahi, F. (Ed.), 21st Annual ARCOM Conference, 7-9 September,
SOAS, University of London. Association of Researchers in Construction
Management, Vol. 2, pp. 793-802.
Meyers. S, (1981), “fast track and construction management are new forms
of construction agreements” pg. 22-23,
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of Civil Engineers, Vol. 128, No. 5, pg 375-384.
Murray, D. (1997), ʻAn analysis of Fast Track Constructionʼ, MSc.thesis,
University of South Australia
Odeyinka, H.A., Lowe, J. and Kaka, A. (2008) “An evaluation of risk factors
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Overcash, A.L. and Gerdes, E.L. (2009), ʻFive Steps to Fast-Track the
large, complex construction caseʼ, Dispute Resolution Journal, Vol. 64,
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Issue 2, pp. 34-41.
Pena-Mora, F. and M. Park (2001). “Dynamic planning for fast-tracking
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and Management, Vol. 127, No. 6, pg.: 445-456.
Sekaran, U. (2003) Research methods for business: a skill-building
approach, New York, Wiley.
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Waltz, E. and Montgomery, M (2003) Fast-Track Construction In The face
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Appendix A - Table 4.8 Respondents General Comments on Fast Tracking Practices
No. Comments
A Fast track practices work when the builder has a good relationship with the
client. If there is an understanding of documentation (i.e. 70% documentation)
it can work well. The site team needs to get together, and this process works
well with good program, request for information (RFI) system, and site
coordination. With an A-Grade team fast track is enjoyable and rewarding for
all involved. Anyone on the team that isnʼt committed will cause a glitch in the
team, and it may fail. - Site Manager
B By incorporating subcontractors in the design phase you can improve
productivity and quality - Project Manager-1
C Design changes during construction, for example architectural type, effect
services and rarely reviewed. - Services Manager
D The clients driving factors need to be considered to improve one area such as
cost, another area such as time will need to suffer - Project Manager-2
E Fast tracked projects are a good idea if the contract is typically Design and
Construct (D&C) and construction starts on 85% or higher documentation. If
this is done then construction will fly as long as good contractors are available
and money is spent to accelerate construction via technology proper planning
and adequately resourced project. Also need right contractors with good
relationships with subcontractors and suppliers. - Project Manager-3
F I find accelerating a project with additional shifts can sometimes (due to
communication between supervision) be detrimental in time taken to complete
tasks. - Site Manager
G I completed a time versus cost assessment on two identical buildings
comparing Building 1 to Building 2, actual statistics showed that we spent an
extra 30% more on Building 1 implementing acceleration techniques and it
took 10% longer (structural trades only) - Contract Administrator-1
H Acceleration can be beneficial if costed correctly and the builder will be
reimbursed appropriately – then corners (i.e. safety / quality) will not be cut. -
Contract Administrator-2
I Should only be carried out if practical to do so and should in no way affect
safe work practices, or quality of installation - Sub-Contractor
J Having a 100% design in the BIM form will provide exact cost as builders can
price what is required. Risk is minimal for all parties, taking a design at 30% to
50%. However clients have a pressing need for the projectʼs completion – i.e.
must be complete for Christmas shopping, South Australian Cricket
Association (SACA) opening before cricket test, so program dictates the time.
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Politicians, Clients, make promises that the project will be completed to the
client, for example banks, public. Knowing the construction period – plan
ahead and you do not need to panic - Programmer
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ASOCSA2011-28
The Practice of Out-sourcing in the
Management of Office
Building/Facilities in Lagos-Nigeria
H. A. Koleoso1, R.O. A. Iyagba2 and O. E. Ogunsanmi 3
,
1Department of Estate Management, ,University of Lagos Akoka Yaba,
Lagos Nigeria,
[email protected] Mobile Tel. +2348023977639, 2
Department of Building, University of Lagos Akoka Yaba Lagos,
Nigeria,
[email protected] Mobile Tel. +2348022903997
3Department of Building, University of Lagos Akoka Yaba Lagos, Nigeria
[email protected] Tel. +2348093162276,
ABSTRACT
Purpose
This study examines the nature and scope of out-sourcing of various scope
of work by Office building / facilities support service providers in Lagos-
Nigeria.
Design / methodology / approach
The research adopted quantitative survey method using questionnaires as
the data gathering instrument. The data obtained was analysed with
descriptive statistics such as percentages, frequencies and mean.
Inferential statistics such as one way Analysis of Variance (ANOVA) and
Chi-square were used to test the hypotheses that were formulated for the
research.
Findings
Total outsourcing is currently not practiced in Nigeria. Building support
service providers in Nigeria adopt different levels or extents of outsourcing,
but medium level outsourcing is most common. None of the three levels of
outsourcing is significantly more effective than the others. More labour
intensive and less specialized activities are more frequently outsourced by
the respondents, while the more strategic and specialised responsibilities
which are imperative for the achievement of organizational objectives and
image of the organization are retained in-house.
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Research Limitations
Although respondents were chosen randomly, the building sample were
purposively chosen to include only purpose built office buildings with well
established support service provision
Practical implications and Contribution to development
T he survey provides information that can enhance the success of
T
outsourcing of tasks by the building support service provider. It indicates
areas of the market that are available for out-tasking to service companies.
It also indicate that model or extent of outsourcing is not a determinant of
success in outsourcing of building support service
Original / value of paper
It fills important research gaps on nature and scope of outsourcing and
effectiveness of levels (models) of outsourcing of building support service in
Lagos, Nigeria.
KEYWORDS: Building support service, Efficiency of support service, Office
buildings, Outsourcing
1. INTRODUCTION
Outsourcing involves transferring the management of non-core functions or
the out-tasking of these activities to external providers. Arnold (2008)
described outsourcing as an abbreviation of the phrase “outside resources
using”, while Slepniouv and Waehrens (2008) referred to it as a switch from
use of internal to external resources in conducting activities. Extreme
proponents of outsourcing believe that non-core services including
management of buildings and facilities should be outsourced. One of the
popular reasons for this proposition is the belief that managers of non-core
services cannot aspire to become top level managers within an
organization. However, as owners of their own management outfit they can
be spurred to high performance and productivity. Williams (2003), Elmuti
(2003), Burns (2008) and Hesketh (2008) admit that in most cases
outsourcing of Facilities Management Departments have been identified
with real cost savings. They identified some other reasons for outsourcing
as quality, motivation, flexibility and availability of enhanced skills.
William (2003) identifies two generic types or models of
outsourcing; firstly that which involves outsourcing of (management)
supervision and direction of task operators and facility services and
secondly, that which involves contracting out of Facilities management
activities or tasks otherwise known as out-tasking. Another dimension to
outsourcing (a more extreme one) is where the space need of an
establishment is met by leasing pre-serviced buildings from a facilities
management consortium. This involves the total devolution of all support
service provisions to FM companies that will provide both delivery and
management of FM functions (Fielder, 2003).
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According to Jones (2000) flexible service occupancy enables
organisations to dissociate themselves from the volatility and constraints of
property investments while creating space flexibility and quality. It also
replaces the separate payments for land, rents, rates, property
management and support service with a single charge for a serviced
environment. In other words, this arrangement creates better value for
money in all ramifications. Other financial advantages that pre-fitted /
serviced accommodation arrangement offer to businesses are significant
reduction in the capital outlay that will ordinarily be required to commence
operations and the retention of greater volume of business turnover as
profits; a direct consequence of not having the need to provide for
depreciation on wasting assets as is usually done with company fixed
assets accounts (Bottom 2003). With pre-fitted / serviced accommodation
small scale companies may be able to obtain quality, comfortable and
effective FM with minimal expenditure, a situation which invariably
enhances growth, sustainability and continuity.
Many FM practitioners agree with most of the positive
outcomes of total outsourcing as identified above. For these reasons, this
type of outsourcing is being advocated by authors such as Jones (2000). In
spite of the identified advantages of total outsourcing some writers such as
Williams (2003) and Burns (2008) advocates rather, medium level
outsourcing where specialist engineering and strategic functions are
retained in-house while highly labour intensive activities like cleaning and
security are out-tasked. however Williams (2003) as other authors like
Hesketh (2008); Slepniov and Waehrens (2008); Paxman (2005) and
Lacity, Willocks and Rottman (2008) observes that the major determinant of
success in outsourcing in management of building and facilities is not the
level or model adopted but rather the extent to which the objectives of the
organization for outsourcing are well identified and the strategies to be
adopted are outlined.
Although the numerous advantages of outsourcing as
examined above relates to total outsourcing, however, literature such as
Burns, (2008); Hesketh (2008) and Elmuti (2003), indicate that generally
most forms of outsourcing offer some of the identified advantages, although
to varying degrees. This suggests that outsourcing in whatever form saves
cost and improves performance of buildings and its support services, and
that the success of the support service provisions in a building could be
different at different levels of outsourcing. In the attempt to enjoy these
possible advantages the decision to allocate building support task in-house
or outhouse has become a paramount one for executives of organizations
(Springer, 2001). There is also the decision as to what extent of
outsourcing is i.e. low, medium or total could be more effective and should
be adopted.
The above issues makes researches such as the current one
which examines the possible contribution of outsourcing to the
enhancement of work space performance at various levels pertinent,
particularly in the Nigerian context. The research is also important in that it
identifies frequently outsourced task or activities within the market in order
to provide this information for companies who provide building support
services. For this reason the aim of this research is to examine the nature
and scope of outsourcing of building support services within the Nigerian
office building sector and to identify any possible relationship between the
level or extent of outsourcing and performance of the concerned
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building/facilities. In other words, this research established if performance
of building and services increased with higher level outsourcing in the
Nigerian context. This aim is achieved through the following specific
objectives.
- Establishing the prevalence of the different level of outsourcing i.e. low,
medium and high and total in office building / facility support service
provision. In other words the extent of outsourcing of FM roles or tasks and
- Determining if any of the outsourcing levels is more efficient than others
- Determining the most frequently out-sourced roles in office building/facility
support service provision
Expectedly, the study will fill important research gaps by providing
information on the practice of outsourcing of building support in Nigeria and
invariably enhance the quality of management of fixed assets owned or
used by establishments. It will also indicate the areas of the market that are
available for out-tasking to service companies, by identifying most
frequently outsourced building support service activities among Nigerian
organization.
2. LITERATURE REVIEW
Frequently Outsourced activities and Tasks
According to previous studies, top activities or functions that are usually
outsourced are information technology (contract programming, data entry
and simple data processing), management services and manufacturing of
products or services (Elmuiti, 2003; Corbett, 1999; Bender, 1999).
Organisations have transferred responsibility for entire functions such as
human resources, finance, information technology, and research and
development services to both local and offshore service providers. Other
outsourced activities according to Austin et al (2001) are purchasing,
invoicing, billing, postal services, real estate, FM and administration tasks.
Brown (2005) cited in Kostin 2009 identified ten major areas of outsourcing
as information technology, administration, human resources, Finance,
Sales and marketing, transport, distribution and logistics, real estate and
FM, manufacturing and contact centers. Out of these (ten) 10 areas, real
estate and FM was placed ninth in terms of frequency of application. In
spite of this indication, outsourcing in FM fast gaining grounds.
According to Atkinson (2006), outsourcing in FM has basically
been targeted at cost savings but this gradually shifted to quality of service.
Barret and Baldry (2003); Siervert (1998) and Williams (2000) identified
some commonly outsourced activities in FM as, electrical/mechanical
services, fabric maintenance, internal planting and landscaping, security,
cleaning, catering, vending, supply of receptionist, mailroom, finishes
maintenance, external areas, property asset management, estate
management, janitorial services, building operations and office support.
Additional areas of outsourcing in FM according to Paxman (2005) are
kitchen equipment, general cleaning, confidential wastes, feminine hygiene,
porter service, travel and fleet management.
Key Success Factors for Outsourcing
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Literature provides that it is near impossible to have either a hundred
percent outsourcing or in house provision. Sievert (1998) disagrees with
total outsourcing and recommended that some activities should never be
outsourced. He gave the example of maintenance of a nuclear weapons
manufacturing plant which should never be outsourced due to insecurity
issues and major production equipment or system in a manufacturing
company. Williams (2003) also advised against commercial contracting or
flexible occupancy agreement because according to him, it sometimes
leads to the employer losing control of the cost and quality of the services
provided. He also explained that there are always unscheduled inevitable
works, contractual claims and conflict of interest issues that result in
problems. Paxman (2005) identified some activities that are usually not
outsourced in FM as, property management, space planning, audio visual
equipment, telecommunication and senior management. It however
appears that success in the outsourcing of task or services is not a function
of the model adopted by the organization or what task is outsourced. This is
supported by Slepniov and Waehrens (2008) in their observation that
evidence does not support a one size fits all path or process to the success
of outsourcing and that the processes of outsourcing are not surprise free.
They stated further that for outsourcing to be successful, companies have
to learn about their own historically generated interdependencies which
make it difficult to lift one element from a complex system.
Researchers have come up with important success factors to
assist executives of organization in their outsourcing decisions. A major
one among these factors is the need to identify appropriately the objectives
and expectations of outsourcing to the concerned organization {Williams
(2003); Elmuti (2003); Hesketh (2008); Slepniov and Waehrens (2008)}. In
the case of building support services or FM, it is equally important to
possess the ability to incorporate the identified objectives into the FM
process. Lacity et al. (2008) explained that for outsourcing to be successful
both clients and suppliers must diligently manage the details. The writers
gave additional key success factors for outsourcing as follows; client
readiness, good strategy, rigorous processes, sound contract and good
relationship management, adequate planning during phases of outsourcing
and effective organizational communication.
It is not in all instances that at least the minimal positive
expectations of outsourcing are met. Sometimes the nature of activity that
is outsourced and the extent of positive expectations make in-house
providers outperform the outsourcers. This was the case in Beimborn et al.
(2006) where in the aspects of alignment and flexibility of IT with business
strategy within German banking industry in-sourcing was found to
outperform outsourcing. Kostin (2009) also found that despite the
similarities between Russia and Sweden in terms of geographical location,
culture and nature, there are marked differences in the models, extents and
even impact of outsourcing between woodworking companies operating in
both countries. These are good reasons for continuing researches into
different outsourcing activities within various environmental contexts. A
number of research have been done on outsoucing of logistics, supplies
and transportation, information technology, Health and human resources
management (Beinstock (1994); Ahola (2008); Beimborn et al. (2006);
Aktas and Ulengin (2005) Siddiqi, Masud, & Sabri (2006); Burns (2008) and
Busi and McIvor (2008). However, Studies on Outsourcing of building
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support service provision particularly within the context of a developing
world have been limited. This creates an important research gap which this
current research attempts to fill.
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3. METHOD OF RESEARCH
Sampling and data collection
This research adopted quantitative survey method. The survey was
conducted among occupants of office buildings within Lagos metropolis.
Primary data were obtained through questionnaires that were sent to
respondents within the sample. The sampling was multi-staged;
accordingly, the sampling was done first among buildings and then among
respondents in the buildings. The buildings were chosen purposively to
include only purpose built offices that have well established building
support provisions. On this basis, 41 buildings were included in the sample.
The respondents for the study are in two categories i.e. the users of the
building and the support service providers for the buildings. Two (2)
respondents were randomly chosen within the building support service
department of each building and six (6) respondents among the users of
each building. This translates to 82 respondents among the building
support service providers and 246 among the users. A different type of
questionnaire was sent to each group. In all 307 questionnaires were sent
out for this study. Out of this, 54 questionnaires were duly filled and
returned by the support providers and 150 for the users. This translates to
a response rate of about 66% and 61% respectively.
Data on outsourcing was obtained from the building support
providers, while the one on performance of the buildings was obtained
through the userʼs questionnaire. Twenty four (24) outsourcing tasks that
were obtained from previous literature were examined in the study. Building
performance was measured using 28 satisfaction and 17 comfort factors.
Some of the satisfaction factors that were used in the measurement are
adequacy of electric power supply, adequacy of signage and direction
displays, level of hygiene, level of safety and security, adequacy of office
space, efficiency of waste management and adequacy of personal space,
while the comfort ones include, flexibility and comfort of furniture, adequacy
of natural ventilation, adequacy of lighting, temperature comfort, comfort
and cleanliness of sanitary provisions.
Method of Analysis
Frequency and percentages were used in establishing the level of
outsourcing of FM tasks among the support service providers. The level of
outsourcing was divided into 4 categories of 1-19%, 20-59%, 60-99% and
100% representing low, medium, high and total level outsourcing
respectively. None of the support providers practice total outsourcing; our
analysis was therefore reduced to the first three categories of low, medium
and high levels. Chi-square was used to test the significance of the
difference in the levels of outsourcing within the three categories. Data on
performance of the sampled building were required in order to determine
the possible difference in efficiency for the three outsourcing levels.
Performance was rated on a Likert scale of 0 to 5. 0 represent not
provided, 1 is not satisfactory, 2 is somewhat satisfactory, 3 is less
satisfactory, 4 is satisfactory and 5 is very satisfactory. The mean
performance score is
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obtained for each building, the mean values for the buildings in each level
are then summed up to obtain the total performance score for each
category. One way analysis of variance (ANOVA) is then deployed to
determine the difference in the efficiency level of the three categories. This
is done at 95% confidence level.
To determine most frequently outsourced task, again Likert
scale of 0 to 4 was adopted. 0 representing never at all, 1 is hardly ever
outsourced, 2 is fairly often outsourced, 3 is very frequently outsourced and
4 representing outsourced all of the time. The mean value of the ratings for
each variable or item is then obtained. These mean values are then ranked
from 1 to 24th.
4. RESULT
Characteristics of respondents
The average age of respondents among the service provider is 41.17years.
Three of them had OND (ordinary national diploma) academic qualification,
while 34 have B.sc / M.sc degrees, 17 others have post graduate diplomas
or certificate. The average age among the building occupants is 38.56
years. Fifteen of this group of respondents are OND certificate holders, 83
have HND / B.sc degrees, while 42 have M.sc and other higher degrees.
This indicates about 94% and 83% of the respondents in the service
providers and usersʼ category respectively have at least a B.sc
qualification. This shows that our respondents are educated well enough to
be able to provide appropriate responses to the questions asked.
Although the building support service profession is a male
dominated one about 18.5% of the respondents are women. There is an
even better spread in the usersʼ respondents as almost 37% are women.
This implies that the views of both sexes are fairly well represented in the
sample.
Level of Outsourcing
The frequency of respondents who outsource tasks at the four different
levels of outsourcing can be found in Table 1. As stated earlier none of the
respondents practiced total outsourcing. This table indicates that 22 out of
the 58 support providers representing 40.7% practice low level outsourcing.
Twenty four of the respondents representing 44.4% practice medium level
outsourcing, while eight (8) respondents representing 14.8% practice high
level outsourcing.
Table 28. 1: Level of Outsourcing
Level Frequency Percentage
Low 22 40.7
Medium 24 44.4
High 8 14.8
Total 0 0
Source: Field study (2011)
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This implies that Total FM (TFM) or Total outsourcing is currently not
practiced in Nigeria. This suggests that Nigerian building support service
providers abstain from practicing TFM. This is consistent with the
recommendation by authors such as Sievert (1998), Williams (2003) and
Paxman (2005) that TFM apart from being impractical should be avoided. It
is also implied that medium level outsourcing is most practiced among
building support service providers in Nigeria i.e. medium level outsourcing
is the commonest level of outsourcing. This is followed by low level
outsourcing, while the least common is high level outsourcing.
Table 28. 2: Chi-square test for significant difference in level of
outsourcing
Main Focus
Z 8.444
Degree of freedom 2
Asymp. Sig. (2-tailed) 0.015
Source: Field study (2011)
Hypothesis 1
Chi-square was used to test the hypothesis that;
H0: Nigerian building support service providers do not adopt different levels
of outsourcing and
H1: Nigerian building support service providers adopt different levels of
outsourcing
Table 2 indicates the result of this test at 95% significant level and 2 degree
of freedom. The test shows Z value as 8.444 and p value of 0.015 < 0.05.
As p value is less than 0.05 the null hypothesis H0: that Nigerian building
support service providers do not adopt different levels of outsourcing
was therefore rejected and the alternative hypothesis H1: that Nigerian
building support service providers adopt different levels of outsourcing
was therefore accepted
In other words there is a significant difference in the number of service
providers practicing at each of the levels shown in Table 1.
The more efficient level of Outsourcing
The level of performance of the sampled building were calculated in order
to determine if any of the three level is more efficient than the others and
which one. The level of outsourcing with the higher building performance
scores is expected to be the more efficient level. The efficiency values that
is total performance scores for the levels are; (175.049) for low, (172.321)
for medium and (172.323) for high level outsourcing. This means that low
level outsourcing is indicate to have the highest level of efficiency followed
by high level efficiency and lastly medium level outsourcing.
Hypothesis 2
One way ANOVA was deployed to test the second hypothesis that
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H0: There is no significant difference in the efficiency of different levels
of outsourcing of FM tasks among Nigerian building support service
providers and
H1: There is a significant difference in the efficiency of different levels of
outsourcing of FM tasks among Nigerian building support service providers.
According to the results indicated in Table 3, the performance scores
for the levels of outsourcing are low (175.049), medium (172.321) and high
(172.323). The figures in parenthesis are the performance scores for the
buildings that are comprised in each of the different levels of outsourcing.
F(2,30) = 0.044 and p = 0.957. The rule at 95% confidence level is “reject
null hypothesis if observed p is equal to or less than p value of significance
of 0.05”. With an observed p value of 0.957 > 0.05, the null hypothesis
could not be rejected as the evidence does not support a rejection. This
implies that at 95% confidence interval the null hypothesis that “there is no
significant difference in the efficiency of the different levels of outsourcing”
is not rejected and that the difference in the three performance scores
{(175.049), medium (172.321) and high (172.323)} is only as a result of
random variation.
Table 28. 3: One Way Analysis of Variance for
Significant Difference in the Level of Outsourcing
Efficiency
Sum of df Mean F-ratio Sig.
Squares Square
Between 59.972 2 29.986 0.044 0.957
Groups 20229.600 30 674.320
Within Groups 20289.572 32
Total
Source: Field study (2011)
Ranking of the frequency of Outsourcing of Various Building Support
Service Tasks
To identify the most frequently outsourced FM tasks in Nigeria the 25 tasks
that were identified from literatures respondents were requested to rate the
tasks on a likert scale depending on their perceived frequency of
outsourcing. Details of the scales and method of analysis have been
discussed under methodology. The mean score for each task or variable
was then determined and subsequently ranked to establish the position of
the tasks in terms of frequency of outsourcing. Table 4 provides the details
of the findings.
Table 28. 4: Ranking of Tasks According to Frequency
of Outsourcing
Outsourced Tasks Mean Ranking
Security management 3.17 1
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Cleaning and sanitation 3.16 2
Outdoor and environment maintenance 3.04 3
Janitorial services 3.00 4
Pest control 2.93 5
Other waste management 2.88 6
Building fabric maintenance 2.87 7
Landscaping 2.85 8
Building safety 2.78 9
Catering and vending 2.73 10
Mechanical, equipment and electrical related maintenance 2.64 11
Staff health management 2.54 12
Confidential waste management 2.50 13
Travel services and fleet management 2.40 14
Audio visual equipment provision and mgt 2.39 15
Internal/external porterage and mail services 2.37 16
Landed property leasing, procurement and disposal 2.31 17
Facility and building design 2.29 18
Information and computer technology mgt 2.25 19
Management level responsibilities 2.18 20
Purchasing and procurement 2.16 21
Reprographics and stationery 2.07 22
Reception 2.05 23
Transportation and parking 2.04 24
Source: Field study (2011)
The table is arranged from 1 (one) to 25 according to the
ranking of the frequency of outsourcing of the tasks from the FM
practitionerʼs perspectives. According to the study, Security management
was ranked 1st as the most frequently outsourced activity. Cleaning and
sanitation was ranked next at 2nd position, Outdoor and environment
maintenance was 3rd, Janitorial services 4th, Pest control 5 th and other
wastes management 6th in that order (see Table 4).
The implication from this finding is that the more labour
intensive less specialized activities are more frequently outsourced by the
respondents. This conforms to the recommendation by authors such as
Austin et al (2001); Williams (2003); Paxman (2005) and Burns (2008) that
specialist engineering FM functions should be retained in-house while
highly labour intensive activities like cleaning, janitorial and security
activities should be out-tasked.
The five (5) least frequently outsourced service according to
the respondents are transport and parking ranked 24th, reception ranked
23rd, reprographics and stationary ranked 22nd , procurement ranked, 21st
and management level responsibilities ranked 20th. This result implies that
the more strategic and specialised responsibilities are being retained in-
house as these set of responsibilities are cogent for the achievement of
organizational objectives and image of the organization. This is in line with
the recommendation by Paxman (2005) that it is better to retain tasks such
as lease management, space planning and relocation, audio visual
equipment, telecommunication, senior management responsibilities and
reception in-house. Similar recommendations were also made by authors
such as Williams (2003) and Burns (2008).
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5. CONCLUSIONS AND RECOMMENDATION
Some of the major conclusions is that the nature and scope of outsourcing
of building support services or FM in Lagos,Nigeria is not so different from
what obtains in most part of the world and as recommended by previous
authors. For instance this study indicates that Total FM (TFM) or Total
outsourcing is currently not practiced in Nigeria. A number of earlier works
similarly advised on total outsourcing. It was also indicated that the
Nigerian building support service providers adopt different levels of
outsourcing and that medium level outsourcing is the commonest level of
outsourcing, followed by low level outsourcing, and then high level
outsourcing, although it is indicated that none of these three levels of
outsourcing is significantly more efficient than the others. This finding
implies that the level of outsourcing is not an important success factor in
the outsourcing of building support services and that rather successful
outsourcing may be dependent on how appropriately the objectives and
expectations of outsourcing to the concerned organization are identified
and planned for.
On the frequency of outsourcing of the various FM tasks it can
be concluded that more labour intensive and less specialized activities such
as, Security management, Cleaning and sanitation, Outdoor and
environment maintenance and Janitorial services are more frequently
outsourced by the respondents. It is also indicated that the more strategic
and specialised responsibilities such as management level responsibilities,
reception and procurement which are imperative for the achievement of
organizational objectives and image of the organization are being retained
in-house by the Nigerian building support service providers. This conforms
to the recommendation in previous researches such as, Austin et al (2001);
Williams (2003); Paxman (2005) and Burns (2008).
It is recommended that to be successful at outsourcing, the
Nigerian building support service providers must look beyond the extent or
model of outsourcing that they are adopting but rather they must sufficiently
identify their organizational objectives for outsourcing and consolidate their
strategies on how these objectives will be applied in the outsourcing of FM
tasks. It is also recommended that a good strategy for success is to
outsource more frequently, the labour intensive and less specialized
activities while retaining in-house, the more strategic and specialized
ones.
6. REFERENCES
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Thesis in Business Management, Lappeenranta University of Technology,
Russia
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Outsourcing on IT
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ASOCSA2011-74
Comments from the Property Industry
on Masters Real Estate Curricula in
South Africa
S.H.P. Chikafalimani¹, W. D. Thwala², C. E. Cloete³
¹ ̛ ² Department of Construction Management and Quantity
Surveying, Faculty of Engineering and Built Environment,
University of Johannesburg, South Africa. Tel.: +27115596048
Email:
[email protected] ³ Department of Construction Economics, Faculty of Engineering,
Built Environment and Information Technology, University of
Pretoria, South Africa. Tel.: +27124204545
Email:
[email protected]ABSTRACT
Purpose: The aim of this paper is to report comments given in a survey of
property professionals in the industry on Masters Real Estate (MRE)
curricula in South Africa.
Methodology: A questionnaire was administered to obtain comments from
property professionals in the industry on MRE curricula in South Africa.
Findings: The property industry survey revealed that MRE curricula in
South Africa have both strengths and weaknesses. The main strength of
the curricula noted by the property professionals is that the curricula are
interdisciplinary. Weaknesses reported include lack of case studies and
practical components in the curricula.
Research limitations: Results of the survey will not directly influence
change to the processes of curriculum development for postgraduate real
estate education in South Africa. Curricula development will largely depend
on outcomes of discussions of lecturing staff and university administrations
implementing the courses.
Value: The study will support processes of curricula improvement for MRE
programmes in South Africa
Keywords: Masters Real Estate curricula, property industry
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1. INTRODUCTION
MRE curricula taught by coursework which are offered in South Africa are
given in Table 1. As part of the process of assessment of these curricula,
property professionals in the industry were asked to give comments on the
curricula. Justification for the survey is based on the fact that postgraduate
real estate curricula in South Africa were developed without conducting
more detailed property industry surveys to determine curriculum
requirements (Cloete, 2002; Chikafalimani and Cloete, 2007; and
Chikafalimani and Cloete, 2010). In addition, practitioners in the industry
have an important role to play in the processes of real estate curriculum
improvement (Gallupo and Worzala, 2004). Topics included in MRE
curricula in South Africa are shown in Table 2.
2. LITERATURE REVIEW
The property industry is a changing environment with new regulations and
requirements being introduced regularly (Callanan and McCarthy, 2003). In
order to produce graduates who are meeting industry requirements, it is
important for universities to obtain comments from property practitioners to
be used in curriculum improvement processes. Massey University involved
employers in its process of curriculum review to produce learning that is
recognisable by the industry (Callanan and McCarthy, 2003).
Butler, Guntermann and Woverton (1998) indicate that the intention
of a curriculum is to graduate students who are better prepared to assume
positions in the property industry. They noted too that this can be achieved
when educators seek input from leading practitioners to assist in defining
knowledge and skills required in a real estate curriculum. In addition, the
multidisciplinary perspective of real estate studies which is covered more
fully in built environment / planning schools and preferred by the industry
for preparing students well for the industry must be supported by educators
(McFarland and Nguyen, 2010; Chikafalimani and Cloete, 2010).
The property discipline today is also subjected to extraordinary
forces that redefine its attributes and introduce new expectations for those
with property involvements (Roulac, 2002). A comprehensive
understanding of these factors by interacting with the industry can support
educators in the process of curriculum improvement. Some of the
prominent forces and factors which have caused change in the industry
include: urban form changes and problems; globalisation; information
technology advances and environmental concerns (Chikafalimani and
Cloete, 2008). As a consequence, a larger view of the requisite knowledge
for the property discipline in the 21st Century is significant (Roulac, 2002).
Table 1: Details of Masters Real Estate programmes in South Africa
University & Name Admission Period Delivery Total
Dept / of requirements credits
School degree
Pretoria MSRE .Hons, 4 or 5 2 yrs 8 block 230
(Construction yr relevant and weeks
Economics) degree treatise
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Work
experience
Witwatersrand MSPDM Relevant 1 yr full 1 week 180
(Construction good time, block
Economics & bachelors 2yrs release
Management) degree part
Work time &
experience treatise
Cape Town MSPS Hons or 4 2 yrs & Block 180
(Construction yr relevant treatise system
Economics & bachelors
Management) degree
Work
experience
Free State MPS Relevant 2 yrs & 8 work- 240
(Quantity good treatise shop
Surveying & bachelors weeks
Construction degree
Management)
Nelson MSBE Relevant 1 yr full 4 or 5 202
Mandela good time, 2 block
Metropolitan bachelors yrs part weeks
(Construction degree time
Management .Work and
& Quantity experience treatise
Surveying)
Key:
MSRE: Master of Science in Real Estate
MSPDM: Master of Science in Property Development and Management
MSPS: Master of Science in Property Studies
MPS: Master of Property Science
MSBE: Master of Science in Built Environment
However, Manning and Roulac (2001) lament that while it is appreciated
that innovations have been introduced to improve university education to
serve society and the industry, it is widely recognised that university
education is being slower to respond than institutions in society to recent
social, technological and economic changes. This study was undertaken to
partially address this criticism by ensuring that MRE education in South
Africa remains relevant to the industry.
Table 2: Topics included in MRE curricula in South Africa
Topics
1 Property finance
2 Property development
3 Property investment
4 Property economics
5 Property valuation
6 Property management / Facilities management
7 Financial management
8 Property law
9 Building economics
10 Research
11 Property marketing
12 Construction contract law
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13 Property tax
14 Building technology
15 Environmental economics & management
16 International real estate
17 Information technology
18 Corporate strategy
3. RESEARCH METHODOLODY
To collect comments to be considered in MRE curricula from the industry, a
questionnaire survey was administered. Property professionals were
presented an open-ended question to gather comments on the curricula.
Included in the questionnaire was a list of eighteen topics covered in MRE
curricula in South shown in Table 2. The questionnaire was sent to 777
property professionals in South Africa; 748 of these were delegates who
attended the 38th South African Property Owners Association (SAPOA)
International Convention and Property Exhibition held at the International
Convention Centre in Durban, South Africa and 29 were first and second
year students enrolled in the Master of Science in Real Estate programme
at the University of Pretoria in South Africa. Out of 777 questionnaires sent,
250 questionnaires were returned, representing a 32.2% response rate.
The SAPOA members and delegates were surveyed because SAPOA is
the representative body and official voice of leading property owners and
investors in South Africa, and delegates represented both the private and
public sectors of the property industry. SAPOA members include property
professionals from different real estate fields and geographical areas in
South Africa. This minimises response bias. MSc (Real Estate) students
studying at the University of Pretoria were included in the property industry
survey because most of them are working and know what is expected in
the workplace.
Table 3 provides descriptive statistics of the survey respondents. By
qualification, 86.4% of the respondents had formal university education.
With regard to work experience, 23% were recent graduates with 0 to 5
years of experience. Comments from this category were based on recent
university real estate course content. Respondents with 6 to 15 years work
experience were the largest cohort group representing 41.2%, while those
with 16 years or more of experience represented 35.2% of respondents.
The last two categories are considered more experienced and are
employers or mentors of the recent graduates. Geographically, statistics
show that all provinces in South Africa were represented by respondents in
the survey. In addition, 5.6% of the respondents operated internationally,
indicating that real estate business was indeed growing and gaining
importance globally (Roulac, 2002; Schulte and Schulte-Daxboek, 2003).
4. RESULTS AND ANALYSIS
As expected from an open-ended question, a variety of comments were
submitted. Some comments were not helpful. However, most of the
comments given were constructive and could contribute significantly
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towards curriculum improvement.
When the comments from the practitioners were analysed it is
noted that they are diverse in nature and comprise of two main groups: (a)
weaknesses of the curricula and curricula needs; and (b) strengths of the
curricula. One important comment given by the professionals related to the
strength of the curricula is that the curricula are comprehensive. This
means that the MRE curricula in South Africa are interdisciplinary and
contain all topics required for a graduate to function competently in the
industry as a property professional. These topics are given in Table 2.
Table 3: Description of Statistics of Survey Respondents
No. %
Qualification
Matric 19 7.6
Bachelorʼs degree 77 30.8
Honourʼs degree 66 26.4
Masterʼs degree 70 28
Doctorate degree 3 1.2
Other 15 6
Total 250 100
Current Property Industry Involvement ͣ
Academic / trainer 22 5.5
Property Developer 80 19.8
Property Valuer 37 9.2
Property / Facilities Manager 72 17.8
Property Investor 48 11.9
Property Broker / Marketer 35 8.7
Property Finance 55 13.6
Property Economist 6 1.5
Building Contractor 11 2.7
Other 38 9.4
Total 404 100
Category of Years of Experience
0 to 5 years 59 23.6
6 to 15 years 103 41.2
16 to 42 years 88 35.2
Total 250 100
Geographical location
Gauteng 138 55.2
Northern Cape 1 0.4
KwaZulu-Natal 27 10.8
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Eastern Cape 5 2
Mpumalanga 3 1.2
Western Cape 27 10.8
Free State 2 0.8
National 33 13.2
International 14 5.6
Total 250 100
Note:
ͣ Some respondents reported more than one property industry involvement
so the total is > 250
Some of the critical weaknesses and curriculum needs raised by the
professionals in the survey are:
Inadequate practical component in the curriculum;
Lack of case studies.
Consider writing / communication skills.
Involvement of guest lecturers.
Experienced lecturers are ideal for valuable education.
Graduates require an understanding of what is expected of them in
an employment environment, often graduates are clueless when
inducted into an employment environment.
Curriculum must include real estate issues for the entire Southern
Africa region because a good number of students attending
courses coming from there.
Curriculum must be relevant in South Africa.
Site visits and discussions with industry professionals must be
included.
Invite motivational speakers.
All assignments must be based on practical problems.
Experiential learning must be considered.
Modules should not be seen in isolation because project success is
determined by a combination of information obtained from several
modules.
Students should have basic property knowledge before undertaking
these studies.
Consider social aspects of property development.
Property courses related to property or land ownership and
redistribution initiatives must be considered in South Africa,
including black economic empowerment, property and construction
charters.
Students should be grouped and produce a full property
development and management mock assignment.
Organise property development educational tours.
Issues on how to deal with tribal or customary land for development
must be considered.
Consider business skills.
Consider issues of leadership.
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In terms of ranking of the comments by response frequency, responses on
comment ʻinadequate practical componentʼ ranked first. Second is ʻcase
studiesʼ. Ranked third are demands for ʻwriting / communication skills,
guest lecturers, and experienced lecturersʼ. Based on these results, two
important concerns are raised by the property professionals. Firstly, the
existing curricula are not covering adequately the practical issues required
in the industry. This requirement could be based on the fact that ʻpracticalsʼ
supported students to immediately become productive when they join the
workplace. The finding is in line with a recurring theme in research which
continues to emerge: a graduate programme must possess an appropriate
blend of theory and practice to succeed in the eyes of the property industry
(Gallupo and Worzala, 2004). Secondly, the industry is demanding that
writing / communication skills be emphasised in the existing curricula. This
result is again in line with observations noted by Gibler (2001) and Miles
and Trefzger (2006) that there is a continuing high demand for effective
writing and communication skills in the workplace.
5. CONCLUSION
Results of the property industry survey show that MRE education
programmes offered in South Africa have both strengths and weaknesses.
The main strength of the curricula is that property professionals commented
that the curricula are comprehensive in nature. The impression given by the
practitioners is that property should be viewed broadly, and for graduates to
function competently in the industry they need to be exposed to different
topics relevant to proper understanding of property. The practitioners are in
favour of the interdisciplinary approach to the study of real estate.
In the survey two main weaknesses of the curricula were
identified. Firstly, respondents express a general feeling that even though
the existing postgraduate real estate curricula in South Africa are
traditionally strong, they have not adequately prepared property
professionals to deal with new challenges and needs which have emerged
in the industry. Respondents feel that the existing postgraduate real estate
curricula in South Africa have not adequately exposed students to practical
property issues. The opinion of the practitioners is that the curricula are
putting too much emphasis on theory and not on property practice.
Secondly, the practitioners have pointed out through the survey that they
want experienced lecturers to be involved in the teaching of MRE students.
This makes sense because most of the postgraduate real estate students
are working and it is inappropriate for them to be taught by less
experienced lecturers since they do not add value to their studies (Hardin,
2000). In conclusion, it is then recommended that the universities offering
MRE programmes in South Africa and elsewhere, consider comments
given by the property professionals in the survey in the processes of
curriculum improvement and development in the future in order to meet
industry requirements.
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Proceedings 6th Built Environment Conference 31 July -2 August 2011
Comments from the Property Industry on Masters Real Estate JHB, South Africa
Curricula in South Africa ISBN:978-0-86970-713-5