The Need for a Structured Construction Clients Performance Assessment in Kenya

Transcription

1 Iteratioal Joural of Soft Computig ad Egieerig (IJSCE) ISSN: 22-27, Volume-, Issue-6, Jauary 24 The Need for a Structured Costructio Cliets Performace Assessmet i Keya Gwaya Abedego, Wayoa Githae, Sylvester Muguti Masu Abstract- I recet years there has bee a tremedous icrease of costructio projects i Keya. There has also bee a growig cocer amog costructio cliets o why the idustry is ot achievig the stated objectives. Cliets criticize the idustry for ot always achievig what they eed ad the majority of them are ot satisfied with the quality of the costructio idustry. May of the problems ecoutered i the desig ad costructio phases origiate from poor defiitio of scope ad iadequate plaig. Cliets are very istrumetal i the early stages of project defiitio ad their iput is very essetial towards successful project executio. The mai problems are frequetly attributed to poor plaig ad poor idetificatio of cliets eeds which act as cotributory factors to iadequate project performace. Oe approach that could help improve costructio project performace is to pay more attetio to the role of cliets i scope defiitio particularly at the iitial stages of project implemetatio ad also by havig a structured cliet iput ad performace assessmet criteria. The plaig phase presets the best opportuity for cliets to achieve their objectives because it is at this stage that they ca express their eeds properly. Despite their importat role i costructio projects there has ot bee much research o a structured assessmet of the Cliets role i costructio projects. The mai aim of this paper is to develop a framework for improvig scope plaig ad maagemet to eable costructio cliets overcome the problems they ecouter with other project participats. The framework will eable costructio cliets i Keya idetify ad commuicate their eeds more clearly to the other project participats. I recet years there has bee a great cocer over the performace of the costructio idustry i Keya. For Istace there have bee a umber of accidets o costructio sites. Buildigs have bee reported to have collapsed i Nairobi ad Kiambu amog other couties. However, the observed challeges are ot uique to the Keya Situatio. Sherif (22) has idicated similar challeges i the UK. This has led to may reports beig published there criticizig costructio, statig that it is characterized by low achievemet ad low productivity ad offerig o solutios to overcome some of the stated problems. Key Words: Modelig, project maagemet, Scope, Mauscript received Jauary 24 Gwaya Abedego, Lecturer- Costructio Maagemet, Jomo Keyatta Uiversity of Agriculture ad Techology (JKUAT) NAIROBI, KENYA. Wayoa Githae, Seior Lecturer- Costructio Maagemet, Jomo Keyatta Uiversity of Agriculture ad Techology (JKUAT) NAIROBI, KENYA. Sylvester Muguti Masu, Seior Lecturer- Real Estate ad Costructio Maagemet, Uiversity of Nairobi (UON), NAIROBI, KENYA. I. THE NATURE OF CONSTRUCTION INDUSTRY Costructio projects are widely accepted as complex i ature. This complexity is evideced i a umber of differet ways, such as; size of the project; techical complexity; cotractual arragemets used; ad the rage of cliet-cosultat-cotractor relatioships. The costructio idustry is also characterized by the ivolvemet of differet parties such as cliets, cotractors, subcotractors ad cosultats. The iteractio of costructio idustry parties, who have their ow objectives which differ from the others i the same supply chai ofte lead to coflict ad litigatio. Their performace has a great impact of the outcome of the project. Disparities betwee project objectives ad the objectives of the participatig orgaizatios play a importat role i this. This is attributed to the fragmetatio of the costructio idustry ( Latham 994) Accordig to Ahuja (994), most costructio projects have four commo objectives; time, cost, quality ad good will. They are the primary ad the traditioal costructio performace measures o most costructio projects (Ward et al 99). Although there have bee may attempts to improve performace, limited success has bee achieved (Ega 998). Quality is a itegral part of scope, budget ad schedule ad the source of may projects associated with projects is the failure to defie the project scope (Oberleder 99). This is because all too ofte the focus is just o budget or schedule. Oe reaso for ot achievig performace specificatio is poor commuicatio betwee the cotractor ad cosumer as they have differet perceptios of specificatios. II. CLIENTS ROLES IN CONSTRUCTION PROJECTS Cliets play a crucial role i costructio projects. They are the origiators of projects, defie scope i form of a brief, arrage for fiacig, give the site where the costructio works are to be carried out ad fially make paymets. Some projects have succeeded or failed depedig o the performace of cliets. It was therefore importat to ivestigate the role of cliets uder the performace of their obligatios maily uder scope defiitio ad give a recommedatio. III. SCOPE DEFINITION Scope defiitio is defied as the process by which projects are defied ad prepared for executio (Gibso et al 996). The iformatio idetified durig this process is usually preseted i a form of a project defiitio package. A project defiitio package is a detailed formulatio of a cotiuous systematic strategy to be used durig the evaluatio phase of a project to accomplish the project objectives. This package 47

2 The Need For A Structured Costructio Cliet s Performace Assessmet I Keya should iclude sufficiet iformatio to permit effective ad efficiet detailed egieerig to succeed (Gibso 99). Accordig to Burke (2), the scope defiitio; outlies the cotet of the subject details, how it will be approached ad explais how it will solve the cliet s eeds ad problems. Scope defiitio is a formulatio ad documetatio of the methods ad resources a ower of a compay ca use to perform plaig. It comprises the followig:- Statemet of eed Outlie of kow alteratives Defied schedule for plaig Defied plaig resources i detail Defied iformatio available ad eeds Cotract strategy Defied deliverables Defied tasks for miimizig risks Defie resposibilities for plaig team members A. Scope Defiitio Ad Success The review of literature cocerig scope defiitio revealed that the quality of scope defiitio is closely related to the success of a project. The scope defiitio developed durig the early stage of a project has a sigificat effect o schedule ad cost features at completio (Gibso ad Griffith 997). Gibso ad Dumot (996) reported i their study that the lack of scope defiitio is the most problematic cause of rework ad lower productivity as well as delay to project beig completed o time. Proper scope defiitio is a critical factor that cotributes to project success (Sherif, 22). Oe of the reasos behid icomplete scope is that time pressure geerated by the market ofte requires costructio to commece before desig is complete. Gibso ad Dumot (996) support this view i which compaies wish to reduce desig ad costructio time which ofte results a poorly defied scope. Turer (99) gave a example of usig fast-track approach techique to complete projects faster ad as a result produce risks. The reaso for risk is that the desig is ot complete whe costructio begis which cosequetly leads to desig chages ad cost overrus. B. Previous Attempts To Defie Scope Defiitio The importace of scope defiitio has led to may attempts to idetify the factors critical of scope defiitio. The first attempt was performed by Joh Hackey i the mid 96 s ad the secod was by the Rad Corporatio i the early 98 s. Joh Hackey Defiitio Ratig Idex Joh Hackey published the first defiitio ratig idex checklist (Gibso ad Dumot 996). This was a tool desiged to quatify the degree of scope defiitio for idustrial projects. He classified the items for a good scope defiitio uder six mai items. I his view, the most importat item i the project defiitio package that if well defied; should miimize the potetial cost overru of a project. Hackey (992) classified the items of the scope defiitio uder six major items amely; Geeral project basis Process desig status Site iformatio Egieerig desig status Detailed desig Field performace status The checklist of Joh Hackey was developed i such a way that items are assiged maximum weights i his checklist. The weights represet the relative ability of a item to affect the degree of ucertaity i the project estimate scores for each item. For example, complete defiitio is give a score zero ad the scores icrease up to the maximum possible weight as the level of defiitio decreases. The secod was the Project Defiitio Ratig Idex by Rad Corporatio as discussed hereuder. C. Project Defiitio Ratig Idex (PDRI) The previous sectio described that iformatio regardig defiig the scope of a project should be represeted i a form of package cotaiig the details. This is importat because it allows the project to be executed i a effective way, sice all the critical elemets are idetified. The tool that idetifies ad describes these critical elemets i the scope defiitio is called project defiitio ratig idex (PDRI). The PDRI is a easy to use tool that eables the plaig team to evaluate the likely hood of achievig project objectives (Griffith ad Griffith 996). The weightig is the same as the oe performed by Joh Hackey. The Beefits of PDRI The CII (996) idetified the followig beefits: A checklist to eable project team evaluate the completio of scope defiitio A tool to guide i commuicatio betwee owers ad cotractors A method to help teams recocile differeces A way to moitor progress durig plaig A traiig tool for compaies A bechmarkig tool for compaies to evaluate the completio of scope defiitio versus the performace of past projects IV. METHODOLOGY A survey was carried based o 8 questioaires to cliets to determie their role i scope defiitio. 2 respodets retured the questioaires ad results are discussed below. A remider was set to uresposive Cliets after two weeks whe they promised to fill the research istrumet by the ext two weeks. A follow was agai made after two weeks without ay further positive resposes. Reasos give icluded that they were busy, they were yet to fill; they misplaced the questioaires amog others. However, for survey research thirty respodets are deemed adequate for data aalysis. The received data was subjected to Kaiser-Meyer-Olki s measure of samplig adequacy with a score of At this poit a decisio was made to carry o with data aalysis usig already received questioaires. A. Tools Used By Compaies Durig Pre-Project Plaig The cliets apply/use project tools as pre-plaig project maagemet strategies. Table. below illustrates the results. 48

3 Iteratioal Joural of Soft Computig ad Egieerig (IJSCE) ISSN: 22-27, Volume-, Issue-6, Jauary 24 Table.: Tools used by compaies durig plaig i () R a Tools Used Never Rar ely Some times Oft e Ver y ofte ki g Agreemet 4 8 matrix 7. Aligmet 7. 9 thermometer. 2 7 Bechmarkig Braistormig Lesso leart from previous projects Maagemet by objectives 8 Project defiitio ratig idex (PDRI) 8 7 Scope defiitio checklist Value egieerig programs Work process 7. flow diagram Source: Ow field study The use of idicated tools durig plaig as part of project maagemet strategies is dismal. Lessos leart from previous projects at 6 is the oly reasoably cosidered factor. The rest like project defiitio idex is rarely or ever used at 9. Other factors ot usually used are agreemet matrix, aligmet thermometer ad bechmarkig. Scope defiitio checklist, value egieerig ad braistormig are iadequately used at 7.. Ideally, cliets play a sigificat role i costructio projects ad clear scope defiitio is useful. The role of cliets i costructio projects ca be rated at 8 overall for successful projects executio otherwise if they do ot cooperate with cosultats, it is very rare for project performace to achieve above 7 o overall performace success. The perfectio of these tools usage will go a log way i esurig efficiecy i the costructio idustry with closer coordiatio, moitorig ad evaluatio of the performace of costructio projects. V. PRE-PROJECT MANAGEMENT PERFORMANCE INDICATORS A. Early project maagemet requiremet idicatios A survey to establish the occurrece of early project maagemet requiremets problems attributed to cliets was carried out. It was established that cliets authorized project executio before completig plaig, allocated isufficiet time for coductig plaig ad experieced poorly established priorities betwee project objectives *all at 8.. Other factors which occurred as part of early project maagemet problems iclude; lack of leadership at 7. ad poor commuicatio betwee team members at ; which ca be cosidered either a serious problem or ot a problem as such. The rest of the idicators were ot sigificat problems as per table.2 below with lack of experiece with ew techology ad uclear defiitio of team members roles at 8 idicatig that the two factors are isigificat problems. The idicatio is that i Keya ew techology is embraced readily ad team members roles are clearly idetified. Table.2: Occurreces of pre-plaig performace problems i () Ofte R a ad ki very g ofte So N Ra me O com ev rel tim ft bie er y es e d Performace Idicators Authorizatio of Project executio before desigs Isufficiet budget for plaig Isufficiet time for coductig plaig Lack of a clear process for plaig Lack of experiece with ew techology Lack of leadership Lack of team 2. skills. Poor commuicatio betwee team 7. members Poorly established priorities betwee project objectives Uclear defiitio of team members' roles 8 Source: Ow field survey V e r y of te

4 The Need For A Structured Costructio Cliet s Performace Assessmet I Keya VI. USE OF PROJECT MANAGEMENT TOOLS IN SCOPE DEFINITION Respodets were asked to rate how ofte they employed various project maagemet tools while defiig scope. Prepare coceptual estimates, defie deliverables, documet project scope ad prelimiary desig are the mostly used tools. O the other had use of partership approach to spread risk, use of tools for evaluatig completeess of scope before start of detailed desig is rarely used. More details are o figure. below. Sice some of the tools are strogly used ad others rarely used it caot be cocluded that the costructio idustry i Keya is superior or iferior to the other developig coutries. However developed coutries have perfected these tools ad they use all of them but mutually exclusively. Respodets were asked to rate how ofte they employ various factors while defiig the scope. It was oted that 9 of the respodets rarely use partership approach to spread risk as a tool to scope defiitio, while cofirmed coceptual estimates forms a crucial tool whe producig a scope defiitio. b. Quatitative (Qty): These are idicators agaist which moetary values are ot applicable, but results or impacts ca be quatified for example idicators related to time, work doe ad productivity. c. Qualitative (Qly): These are idicators agaist which either moetary values or quatitative values ca be attached. These idicators are measured o a scale (ordial) for istace a Likert scale of assessig the efficiecy or effectiveess of the maagemet team. ii. Measurig a. Measure the actual value. b. Compare the actual value with the plaed or expected value. c. Determie the differece betwee actual ad plaed/expected value. Wheever, a listed idicator i the set for a criterio is foud to be ot applicable or irrelevat its measured value is automatically zero. I such a situatio, the weightig for the remaiig idicators for the give criterio are re-estimated to balace the equatio hereuder: i wi or Cliets were asked to rate a set of idicators depictig the performace of cliets based o obligatios. The followig were the mea ratigs:- Table. Ratig o cliet s obligatios FACTOR Project Fiacig. MEAN CUMULATIVE RATING SCORE Project Scope. 8 Figure.: Factors employed while defiig scope productio From the research survey; there is eed for more sesitizatio to costructio cliets o scope defiitio ad maagemet because scope does affect quality, time ad cost. Through active participatio of cliets i the costructio process; there will be better efficiecy ad effective executio of costructio projects. VII. MODELING FOR CLIENTS PERFORMANCE IN PROJECT MANAGEMENT i. Idetify the category of the idicators The measuremet method used will deped o whether the idicator is a moetary, quatitative or qualitative measure. a. Moetary (M): These are (idicators agaist which moetary values ca be attached. These iclude such measuremets as related to direct cost ad cost related measures. Cliet s Project Co-ordiatio with Cosultats. Prompt ad/or cotractual hoorig paymets. 9 Ay other. NIL Source:- Ow Field study. Eve if there was o ratig of ay other; for developig coutries, the political climate; costructio culture ad Govermet policies ca affect the Cliet s performace. However, should the obtaiig situatio chage it will affect the costructio idustry uiformly. For this study we have held the factor as a costat equivalet to (e). PMMc =.PF +.PS +.PC +..Pp+e.

5 Iteratioal Joural of Soft Computig ad Egieerig (IJSCE) ISSN: 22-27, Volume-, Issue-6, Jauary 24 Where PMMc is the cliets overall performace measuremet PF is the cliet s project fiacial arragemets ad preparedess. PS is the role of the cliet i clear scope defiitio ad i scope chage maagemet process; PC is the level of the cliet coordiatio with cosultats i esurig a diliget executio of projects. Pp is the level ad timely hoourig of paymets by the cliet to both the cosultats ad cotractors. (e) is a error attributable to ay exteral factors outside the scope of the cliet s cotrol. Overall project executio efficiecy reflectig good project maagemet is measured thus: Pe = 82PMM + 8PMMc Whereby Pe is the overall project executio efficiecy; PMM is the cosultat ad cotractor cotributio. A paper o project maagemet performace for cosultats ad cotractors is preseted separately ad readers are ecouraged to read it. Project fiacig, paymets, coordiatio ad scope defiitio ca be measured at agreed itervals ad the cliet otified o the areas of improvemet accordigly. VIII. CONCLUSION Cliets have a major role to play i terms of scope defiitio, fiacig ad coordiatio for costructio projects. The type ad level of cooperatio of cliets with cosultats ca make a project a success or a failure. Idetifyig key parameters ad gaugig the performace of the cliets is very crucial. The paper attempted to model the cliet cotributio i the performace of costructio projects i this case at 8. ABEDNEGO GWAYA Academic Professioal Qualificatio B.A (Bldg. Eco.) Hos; Uiversity of Nairobi, MSc. (Civil Eg.); Makerere, Ph.D (Costr. Eg. & Mgt.); Jomo Keyatta Uiversity of Agriculture ad Techology (JKUAT) M.A.A.K. (Q.S); C.I.Q.S.K; Registered Q.S. A. Specializatio Costructio Project Maagemet, Civil Egieerig Costructio, Cotract Documetatio, Project Maagemet Modellig, Project Procuremet Systems ad Geeral Quatity Surveyig. DR. WANYONA GITHAE Academic Professioal Qualificatio B.A BLDG ECONS (U.O.N), M. Egieerig (Kyoto Uiversity, Japa), PhD (UCT), RSA A. Specializatio Costructio Project Maagemet, Costructio Cotract Documetatio, Project Risk Maagemet, Project Procuremet Systems ad Geeral Quatity Surveyig. DR. SYLVESTER MUNGUTI MASU Academic Professioal Qualificatio B.A (Bldg. Eco.) Hos. M.A (Bldg. Mgt). Ph.D (Costr. Mgt.); Uiversity of Nairobi M.A.A.K. (Q.S); A.C.I. Arb; F.I.Q.S.K; Registered Q.S, (Q82). F.I.C.P.M (K). A. Specializatio Costructio Project Maagemet, Costructio Cotract Documetatio, Arbitratio ad Dispute Resolutio, ad Geeral Quatity Surveyig. REFERENCES. Ahuja,H,N., 994. Project Maagemet: Techiques o plaig ad cotrollig costructio projects. Joh Wiley & Sos Ic. Burke, R., 2. Project Maagemet: Plaig ad Cotrol. Joh Wiley & Sos Ic. NEWYORK.. CII (996). The costructability maual, Preparedfor the Costructio Idustry Istitute, Australia. Research Report 8, April. 4. Ega Report (998). Rethikig Costructio Idustry. The Departmet of Eviromet Trasport ad Regio, LONDON HMSO.. Gibso, G. ad Dumot, P., (996). Project Ratig Idex PDRI. A report to the Costructio Idustry Istitute, Uiversity of Texas at Austi, Research Report -. Gibso, G. ad Dumot, P., (997). Team aligmet durig preproject plaig of Capital Facilities.. A report to the Costructio Idustry Istitute, Uiversity of Texas at Austi, Research Report - 7. Gibso, G., Kaczmarowski, J. ad Lore, H., (99). Modellig preproject plaig for the costructio of Capital facility A report to the Costructio Idustry Istitute, Uiversity of Texas at Austi. 8. Hackey, J., (992). Cotrol ad Maagemet of Capital Projects, 2d Ed. MacGraw Hill, Ic. NEWYORK. 9. Latham, M., (994). Costructig the team. Joit review of procuremet ad cotractual arragemets i the UK costructio Idustry. HMSO, Lodo.. Oberleder, G.D., (99). Project Maagemet for Egieerig ad Costructio. McGraw- Hill, Ic. USA.. Sherif, M. (22). A framework for improvig Pre-project plaig. PhD thesis. Upublished. Turer, J. (99). Hadbook of Project Based Maagemet McGraw- Hill.. Ward, S. C, Curtis, B., Chapma,C.B.(99). Objectives ad Performace i Costructio Projects, Costructio Maagemet ad Ecoomics, 9; PP 4-.