brunel university the construction study unit \ department of mechanical engineering an ...

354 Pages·2008·13.14 MB·English

BRUNEL UNIVERSITY
THE CONSTRUCTION STUDY UNIT \
DEPARTMENT OF MECHANICAL ENGINEERING
AN INVESTIGATION INTO THE PERFORMANCE OF MANAGEMENT
CONTRACTS AND THE TRADITIONAL METHODS
OF BUILDING PROCUREMENT
Thesis submitted for the
Degree of Doctor of Philosophy
by
Shamil George Naoum
BSc.(BEng).,MSc(CM)
MARCH 1989
CONTENTS
PAGE
CHAPTER 1 INTRODUCTION TO THE RESEARCH PROBLEM
AND BACKGROUND 1
1.1 Nature of the problem 1
1.2 Background 3
1.3 Apparent disadvantages of the traditional
approach 16
1.4 Apparent advantages of the traditional
approach 18
1.5 Outline aim of the research 20
CHAPTER 2 REVIEW TO MANAGEMENT CONTRACTING 23
2.1 Literature review 24
2.1.1 The US perspective 24
2.1.2 The UK perspective 30
2.1.3 Case studies into management contracts 40
2.1.4 Apparent advantages of MC 43
2.1.5 Apparent disadvantages of MC 45
2.2 The market development and client perception
of MC in UK 48
2.2.1 The use of MC in UK 50
2.2.2 The market share of MC in UK 53
2.2.3 Management contracting projects 54
2.1.4 The clients perception of MC 57
2.2.5 The future of management contracting 64
CONTENTS
PAGE
CHAPTER 3 RESEARCH DESIGN AND METHODOLOGY 66
3.1 Aims and objectives 66
3.2 Previous research models t 67
3.3 The chosen research model 73
3.4 Details of the research model 73
The client characteristics 74
The designer characteristics 75
The project characteristics 76
The contract procedure 77
Procurement method 77
Team relationship 78
Project performance 78
The environment 79
3.5 The research hypothesis 80
3.6 Definitions and measurements of variables 81
3.7 The research methodology 87
3.8 The main study sample 91
3.9 Characteristics of the case study sample 94
3.10 Method of analysis to test the hypothesis 100
3.10.1 Spearman's Rho Coefficient 101
3.10.2 Chi-Square and Fisher's tests 101
3.10.3 Pearson's correlation coefficient 102
3.10.4 Graphs 102
3.10.5 Scoring matrix for project performance 103
3.11 Limitations of the research 104
CONTENTS
PAGE
CHAPTER 4 RESULTS AND ANALYSIS
106
The client 106
The designer 115
The project 117
Contract procedure 120
Procurement method and project performance 122
Summary 151
CHAPTER 5 CONCLUSION AND IMPLICATIONS 153
5.1 Test for main hypothesis one 154
5.2 Test for main hypothesis two 157
5.3 Comparison with other research 163
5.4 Implications 164
5.4.1 Implications for clients 164
5.4.2 Implications for the industry 167
5.4.3 Implications for other researchers 168
REFERENCES 171
APPENDICES
Appendix 1 Role of the management contractor
Appendix 2 Organizational differences between various MCS
Appendix 3 Form of management contract
Appendix 4 Copy of autor's publication to the ASCE (1987)
Appendix 5 Previous research models
Appendix 6 Pilot study questionnaires
Appendix 7 Case study questionnaire
Appendix 8 The research data
Appendix 9 Siegel's and Greene's statistical charts
Appendix 10 Results of the Chi-square tests
Appendix 11 The Correlation coefficient matrix
Appendix 12 Scoring matrix for project performance
LIST OF FIGURES

NO. TITLE PAGE
1.1 Traditional management structure of a project 4
1.2 A guide for procurement path 13
1.3 Choosing a procurement path 13
2.1 Alternative CM concepts in USA 25
2.2 Management structure of 'pure' MC in UK 31
2.3 Cumulative number of contractors entering MC market 51
2.4 Percentage of MC by value of projects 55
2.5 Percentage of MC by building type 56
2.6 Percentage of MC by Construction type 56
2.7 Percentage of MC by sectors 56
3.1 The Chosen research model 73
3./ The research methodology sequence 88
4.1 Construction cost plotted against pre-construction time 124
4.2 Construction cost plotted against construction time ... 126
4.3 Construction cost plotted against total project time .. 130
4.4 Construction cost plotted against area / week 134
4.5 Gross floor area against cost / sqm 137
4.6 Construct cost plotted against percentage time overrun 140
4.7 Construct cost plotted against percentage cost overrun 140
4.8 Significant correlations annoted on the research model 151
HST OF TABLES

NO. TITLE PAGE

2.1 Advantages of MC (CCMI survey) 45

2.2 Disadvantages of MC (CCMI survey) 47
2.3 Details of surveys conducted to investigate the
market development and clients' perception of MC 49
2.4 History of management contractors studied 50
2.5 Procurement method adopted for their turnover by the
management contractors identified 52
2.6 Output of management contracting (in 1983 prices) 53
2.7 Responses to questions on MC V traditional method 58
2.8 Attitudes towards MC in the future 61
2.9 Future trend for MC (CCMI survey) 64
3.1 The research sample, showing procurement method and
client characteristics 94
3.2 The research sample, showing procurement method and
designer characteristics 95
3.3 The research sample, showing procurement method and
project characteristics 96
3.4 The research sample, showing procurement method and
contract procedure 99
4.1 Ranking of criteria for project performance 109
4.2 Ranking of a survey of client criteria 111
4.3 Correlation between performance measures and client 113
4.4 Client type and construction time under a MC 114
4.5 Correlation between project performance and designer 116
lIST OF TABLES

ON. TITLE PAGE
4.6 Correlation coefficient between project performance
project characteristics 118
4.7 Project performance and contract procedure 121
4.8 Procurement method and mean pre - construction time 123
4.9 Procurement method and pre-construction performance 123
4.10 Significant correlation between pre-construction
time and other key variables 126
4.11 Procurement method and mean construction time 127
4.12 Procurement method and construction time performance 127
4.13 Construction type and construction time under MC 128
4.14 Procurement method and mean total time 131
4.15 Procurement method and total time performance 131
4.16 Speed and unit cost performance matrix 133
4.17 Procurement method and mean unit cost 137
4.18 Procurement method and mean time and cost overrun 141
4.19 Procurement method and performance of time overrun 141
4.20 Procurement method and performance of cost overrun 142
4.21 Procurement method and client satisfaction on time 146
4.22 Procurement method and client satisfaction of cost 147
4.23 Procurement method and client satisfaction on quality 149
4.24 Correlation coefficient between performance measures 150
5.1 Procurement method and performance measures in scores 156
5.2 Significant correlation coefficient between
performance measures and other characteristics 161
5.3 Total performance scores under both systems 165
ACKNOWLEDGEMENTS
I would like to express my thanks and appreciation to my
supervisor Mr D.A. Langford, for his ideas and suggestions, for
his time and advice throughout the duration of the research.
I also wish to thank the firms who co-operated, advised and gave
the informations which are necessary to compile this study.
S.G. NAOUM
March 1989
NAME OF CONTRIBUTORS
BUILDING CONTRACTORS
Mr R.G. Walton 01-686-8700
Balfour Beatty Construction,
Southern Construction,
Randolph House,
46/48 Wellesely Road,
Croydon, Surrey CR9 3QD
Mr C.B. Darwin 0246-410111
Mr R.C. Smith, 0246-410111
Henry Boot Northern Ltd
Dronfield,
Sheffield, S18 6XN
Mr P.E. Hastings 01-422-3488 Ext. 490
Mr R.E. Gibson 01-422-3488 Ext. 468
Bovis Construction Ltd
Northolt Rd,
Harrow, Middlesex, HA2 OEE
Mr A.R. Gandy 04862-77332
Mr R.J. Thompson, 0628-762387
Costain Management Design Ltd
Costain House,
Nicholson's Walk,
Maidenhead, Berks, SL6 1LN

Mr R.C. Chandler 01-837-5442
Trollope and Coils Ltd
Duncan Street,
Islington, London Ni 88N
Mr P.W. Ingham, 01-222-4077
R.M. Douglas Construction Ltd
35 Great Peter Street,
London, SW1
Mr A.R. Pickton 061-794-4755 Ext. 168
Fairclough Contractors,
Pendlebury Road,
Swinton,
Manchester M27 lAX
Mr R.A. Simkin 01-942-8921
Mr J.J. Taylor 01-942-8921
Higgs and Hill Building Ltd
Crown House, Kingston Road,
New Madlen, Surrey, KT 3ST