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Dissertation, Project Management Practices, Project management practices Libya, Time overrun, Cost overrun, Construction delays, Procurement, Partnering, Risk Management, Value Management, Sustainable Construction, Benchmarking, Supply Chain Management, Lean Construction, Libya and United Kingdom
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MSc Business Project ManagementWord Count: 18,210
Title: Investigating the role of project management practices in Libya compared to the UK to avoid construction time/cost overruns
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Table of Contents
ACKNOWLEDGEMENT...........................................................................................................................6
ABSTRACT..............................................................................................................................................7
Chapter 1: Introduction1.1 INTRODUCTION...............................................................................................................................8
1.2 BACKGROUND OF THE RESEARCH...................................................................................................8
1.3 RESEARCH PROBLEM AND RATIONALE............................................................................................9
1.4 RESEARCH AIM..............................................................................................................................11
1.5 RESEARCH QUESTIONS..................................................................................................................11
Chapter 2: Literature Review2.1 INTRODUCTION.............................................................................................................................12
2.2 OVERVIEW OF UK AND LIBYAN CONSTRUCTION INDUSTRIES.......................................................13
2.2.1 Construction Industry in Global Context.................................................................................13
2.2.2 Construction Industry of Libya................................................................................................13
2.2.3 Construction Industry of the United Kingdom........................................................................15
2.3 CONSTRUCTION PROJECT MANAGEMENT.....................................................................................15
2.3.1 The Construction Project Lifecycle..........................................................................................16
2.3.2 The General Construction Process..........................................................................................17
2.4 CAUSES OF TIME/COST OVERRUNS IN CONSTRUCTION INDUSTRY...............................................18
2.4.1 Libyan Perspective..................................................................................................................18
2.4.2 UK Perspective........................................................................................................................19
2.5 PROJECT MANAGEMENT PRACTICES IN CONSTRUCTION PROJECTS.............................................19
2.5.1 Procurement...........................................................................................................................20
2.5.2 Partnering...............................................................................................................................20
2.5.3 Risk Management...................................................................................................................21
2.5.4 Value Management................................................................................................................24
2.5.5 Sustainable Construction........................................................................................................25
2.5.6 Benchmarking.........................................................................................................................26
2.5.7 Supply Chain Management.....................................................................................................27
2.5.8 Lean Construction...................................................................................................................28
2.6 BENEFITS OF PROJECT MANAGEMENT PRACTICES........................................................................29
2.7 FACTORS HINDER THE ADOPTION OF PROJECT MANAGEMENT PRACTICES..................................31
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2.8 SUMMARY.....................................................................................................................................33
Chapter 3: Research Methodology3.1 INTRODUCTION.............................................................................................................................34
3.2 METHODOLOGY OF THE RESEARCH...............................................................................................34
3.3 PHILOSOPHY OF THE RESEARCH....................................................................................................35
3.4 RESEARCH DESIGN.........................................................................................................................36
3.5 RESEARCH APPROACH...................................................................................................................36
3.5.1 Qualitative vs. Quantitative....................................................................................................36
3.5.2 Deductive vs. Inductive...........................................................................................................37
3.6 RESEARCH METHODS.....................................................................................................................37
3.6.1 Methods used for Data Collection..........................................................................................38
3.6.1.1 Primary Data Collection Method.....................................................................................38
3.6.1.2 Secondary Data Collection Method.................................................................................39
3.6.3 Limitations of the Research Methods.....................................................................................39
3.6.3 Reliability and Validity of Data................................................................................................40
3.7 DATA ANALYSIS..............................................................................................................................40
3.8 SAMPLE AND POPULATION OF THE STUDY....................................................................................42
3.8.1 Sample Size Determination.....................................................................................................43
3.9 RESOURCES USED..........................................................................................................................44
3.10 RESEARCH ETHICS........................................................................................................................44
3.11 RESEARCH LIMITATIONS..............................................................................................................45
3.12 SUMMARY OF THE CHAPTER.......................................................................................................45
Chapter 4: Results and Analysis4.1 INTRODUCTION.............................................................................................................................47
4.2 DESCRIPTION OF ACQUIRED DATA................................................................................................47
4.3 DATA RELIABILITY TEST..................................................................................................................47
4.4 RESPONDENT’S DESIGNATION.......................................................................................................48
4.5 TYPE OF CONSTRUCTION PROJECTS..............................................................................................49
4.6 NUMBER OF PROJECTS TIME/COST OVERRUN..............................................................................49
4.7 CAUSES OF TIME/COST OVERRUN PROJECTS................................................................................50
4.8 IMPORTANCE OF PROJECT MANAGEMENT PRACTICES.................................................................52
4.9 USE OF PROJECT MANAGEMENT PRACTICES.................................................................................52
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4.10 BENEFITS OF PROJECT MANAGEMENT PRACTICES......................................................................53
4.11 ADEQUACY OF PROJECT MANAGEMENT PRACTICES...................................................................55
4.12 FACTORS AFFECTING THE ADOPTION OF MODERN PROJECT MANAGEMENT PRACTICES..........56
4.13 SUMMARY OF THE RESULTS........................................................................................................58
Chapter 5: Discussion5.1 INTRODUCTION.............................................................................................................................59
5.2 CAUSES OF TIME AND COST OVERRUNS........................................................................................59
5.2 SIMILARITIES AND DIFFERENCES BETWEEN LIBYAN AND UK PM PRACTICES................................60
5.3 FACTORS THAT HINDER THE ADOPTION OF PM PRACTICES..........................................................62
Chapter 6: Conclusion and Recommendations6.1 INTRODUCTION.............................................................................................................................65
6.2 CONCLUSION.................................................................................................................................65
6.3 SET OF RECOMMENDATIONS........................................................................................................67
6.4 RESEARCH LIMITATIONS................................................................................................................70
6.5 FUTURE DIRECTIONS......................................................................................................................70
REFERENCES........................................................................................................................................71
APPENDIX A: QUESTIONNAIRE............................................................................................................81
APPENDIX B: FREQUENCY TABLES.......................................................................................................85
APPENDIX C: SPEARMAN’S RANK CORRELATION CALCULATION.........................................................90
List of FiguresFigure 2.1: Theoretical framework of the study................................................................... 12
Figure 2.2: The Project Life Cycle.......................................................................................... 16
Figure 2.3: The Construction Process................................................................................... 17
Figure 2.4: Descriptive Model of Mohieldin......................................................................... 18
Figure 2.5: Features of Partnering........................................................................................ 21
Figure 2.6: Risk Management Process.................................................................................. 22
Figure 2.7: Risk Matrix.......................................................................................................... 23
Figure 2.8: The Value Management Process......................................................................... 24
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Figure 2.9: Benchmarking process........................................................................................ 26
Figure 2.10: Supply Chain Cube............................................................................................ 28
Figure 3.1: Research Onion of the Dissertation.................................................................... 34
Figure 3.2: Triangulation research approach........................................................................ 42
Figure 3.3: Research process................................................................................................ 46
Figure 4.1 – Survey respondents........................................................................................... 47
Figure 4.2 – UK Professionals................................................................................................ 48
Figure 4.3 – Libyan Professionals.......................................................................................... 48
Figure 4.4: Types of construction projects (UK Respondents).............................................. 49
Figure 4.5: Types of construction projects (Libyan Respondents)........................................ 49
Figure 4.6: Projects cost/time overrun................................................................................. 50
Figure 4.7: Importance of PM practices (UK Respondents).................................................. 52
Figure 4.8: Importance of PM practices (Libyan Respondents)............................................ 52
Figure 4.9: Project management practices in UK and Libya.................................................. 53
Figure 4.10: Adequacy of PM practices (UK respondents)................................................... 56
Figure 4.11: Adequacy of PM practices (Libyan respondents).............................................. 56
List of TablesTable 3.1: Positivist vs. Interpretivist.................................................................................... 35
Table 3.2: Ranking criteria.................................................................................................... 41
Table 4.1 – Respondent’s demographics.............................................................................. 47
Table 4.2 – Reliability analysis.............................................................................................. 48
Table 4.3 – Causes of time/cost overrun (UK Perspective)................................................... 50
Table 4.4 – Causes of time/cost overrun (Libyan Perspective)............................................. 51
Table 4.5 – Ranking comparison among causes................................................................... 51
Table 4.6 – Benefits of PM Practices (UK Responses)........................................................... 54
Table 4.7 – Benefits of PM Practices (Libya Responses)....................................................... 54
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Table 4.8 – Ranking comparison benefits............................................................................. 55
Table 4.9 – Ranking of problematic issues (UK perspective)................................................ 56
Table 4.10 – Ranking of problematic issues (Libya perspective)........................................... 57
Table 4.11 – Ranking comparison issues............................................................................... 58
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ACKNOWLEDGMENTAcknowledgement
First of all, I would like to thanks Almighty GOD for giving me courage to finish this
dissertation on time utilising my best knowledge and skills. A special thanks to my
supervisor, Dr. Walter Mswaka who encouraged me and guided me so well throughout the
dissertation period. I am extremely thankful to my parents and other persons who motivated
me during this research and also throughout my studies. Last but not least, I am thankful to
Huddersfield University for providing me tremendous opportunity for the partial fulfilment of
my MSc Business Project Management.
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ABSTRACTAbstract
Over the past two decades, the Libyan construction sector is experiencing many problems
particularly housing shortages, cost and time overruns, and construction defects due to lack of
adequate project management practices. The purpose of this study is to investigate the role of
project management practices in Libya compared to the UK to avoid time and cost overruns
of construction projects. A blend of primary and secondary data collection methods are used
to achieve this aim where primary data is collected through survey method. The findings of
the paper suggest that Libyan construction industry is different from the UK in terms of not
adequately practicing most of the project management practices. A majority of construction
participants agreed that such practices are inherent to avoid the cost/time overruns but some
problematic factors are hindering the implementation of those practices in Libya. Some of the
critical factors include changes in the scope of the project, lack of knowledge, skills and
experience, fear of change, lack of top management commitment, and excessive bureaucracy.
The paper concludes with a set of recommendations to Libyan construction sector explaining
how they can adopt modern PM practices undertaken in developed countries particularly in
the UK to avoid the cost/time overruns.
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Chapter 1: Introduction
1.1 Introduction
This chapter provides a reasoned discussion on research problem and research background to
set the scene for developing aim and research questions of the study. Furthermore, the chapter
also includes research questions, research rationale, and theoretical framework of the study.
1.2 Background of the Research
Project management includes many activities such as planning, organising, monitoring,
controlling, and securing resources to achieve quality project delivery according to the
scheduled time and within the estimated budget (Munns and Bjeirmi, 1996). Each
construction project is different in nature and on the basis of infrastructure activities. In
addition, different types of projects have different start and end dates with fixed or flexible
deliverables. The criteria of work are also different in construction industry compared to
other manufacturing industries. The Project Management (PM) practices in construction
context are given high importance in terms of achieving best quality product and also to
avoid construction cost/time overruns (Potts, 2008). These key PM practices include
procurement, partnering, risk management, value management, sustainable construction,
benchmarking, supply chain management, and lean construction (Potts, 2010; Cheng et al.,
2012). It must be understood that all PM practices are critical to adopt at the same time due to
extreme pressure to finish projects on time (Potts, 2010).
The United Kingdom has many centuries of experience in the construction industry. Many of
the best PM practices in construction have been developed in Britain and spread around the
world to be used by other nations. In a way, UK construction industry sets the standards for
efficient, high quality and timely construction practices. The nation has a number of leading
and authorised project management associations that offer training and guidance for project
managers (APM, 2012; PMI, 2012). A range of studies appreciates the role of PM practices
for achieving construction project success in the UK (Munns and Bjeirmi, 1996; Baker et al.
2008). However, they also highlight some issues that hinder the adoption of modern PM
practices in the UK construction industry.
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On the other hand, in Libya many leading construction firms from the UK, USA and other
European nations have taken up construction projects in Libya. Hence, the flow of PM
practices and methods in construction industry of Libya has been initiated already. The
Libyan Project Management Association (LPMA) is a body formed by the project managers
in Libya which is responsible for training and providing help to project managers for better
results (Libyan Project Management Association, 2012). But still the level of PM practices in
Libya is inadequate compared to the UK (Shebob et al. 2012).
With this background, the thesis attempts to find out to what extent PM practices used in
Libyan construction industry are different or similar from those utilised by UK construction
professionals? Also, to identify the factors that hinder the adoption of significant PM
practices to avoid construction cost/time overruns?
1.3 Research Problem and Rationale
Construction industry in any economy is subject to different threats and issues that cause
extra cost and time with considerable affect on quality if they are not correctly evaluated.
However, construction industry requires greater management when compared with other
industries (Baker et al. 1999). Unfortunately, the construction sector in Libya has suffered
from sanction during the last period, which made it working under inefficient conditions and
operating with outdated technology in many cases (Ngab, 2007). Libyan authorities set out
their vision for the future development of the construction sector to reverse this situation after
the sanction have been lifted by attracting more foreign investments in different domains and
taking forward the country’s construction industry.
Over the past two decades, Libyan construction sector is facing many problems particularly
housing shortages, cost/time overrun, and construction defects due to the two significant
reasons: (1) slow progress and limited capacity of its construction sector (Abubaker et al,
2008); and (2) lack of adequate Project Management (PM) practices such as procurement,
partnering, risk management, value management, sustainable construction, benchmarking,
supply chain management, and lean construction (Grifa, 2006; Ministry of Planning, 2011).
Furthermore, it is also identified that infrastructural activities at vast level are required to
build or upgrade roads, ports, airports, railways, and new homes (Ngab, 2007). Hotels,
resorts, and other tourist places also require significant infrastructural changes. The need for
quick developments to meet political, economic, social, and technological standards is the
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new challenge for the construction industry in Libya. The above issues and challenges are
witnessed due to lack of technical abilities, lack of PM practices, inadequate managerial
competencies, improper planning/scheduling techniques, and problematic circumstances in
the industry (ibid). As a result, construction industry in Libya is facing many issues such as
time overrun, cost overrun, and quality problems.
People working in construction domain are also subject to expose wide varieties of internal
issues such as environmental, contractual, financial, stakeholders, communication risk etc.;
and external risks such as political and regulatory risks. Consequently, the project’s success
could be influenced in many aspects such as cost, time, and quality if these issues are not
handled properly (Charoenngam and Yeh, 1999). The issues and challenges stated above are
important at this time when construction industry in Libya is facing problems such as
cost/time overruns, housing shortages, and construction defects (Abubaker et al. 2008). In
order to avoid the impact of these issues and threats, the project management becomes an
essential topic in the desire of delivering successful projects (ibid).
From the above discussion it can be acknowledged that the construction industry in Libya
requires adopting innovative PM practices. But unfortunately very limited research is
available in the literature that how Libya can adopt latest PM practices undertaken in the
developed countries to avoid construction cost/time overruns (Tumi et al. 2009; Shebob et al.
2012). Also, researcher’s community has paid little attention in exploring causation factors
that hinder Libyan construction industry to adopt modern PM practices (Hammad et al.
2011). This literature gap exists because of lack of comparative studies that compare and
evaluate PM practices used in Libya with those of undertaken in developed countries.
Therefore, there is a strong need to conduct a study that fills this gap by highlighting major
issues in the Libyan construction industry and devise a solution how identified issues and
threats can be mitigated to achieve project success.
The primary focus of this research is first to explore current PM practices undertaken in the
Libyan construction industry and then compare them with the practices used in the UK for
evaluation purposes; or in other words, this study aims to explore how Libyan construction
industry is different from the UK particularly in terms of PM practices. Also, this research is
subject to investigate problematic events and factors that hinder Libyan construction industry
to adopt latest PM practices. It is believed that providing a set of appropriate
recommendations for adopting and improving PM practices in Libyan construction sector to
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avoid cost/time overruns will significantly contribute to the construction project management
domain.
1.4 Research Aim
The core aim of this research is to investigate the role of Project Management (PM) practices
in the UK and Libya to avoid construction time/cost overruns. To achieve this aim, a
comparative study is conducted to find out the differences and similarities between UK and
Libyan construction industries on the basis of utilising PM practices to avoid chronic issues
like cost and time overruns.
1.5 Research Questions
The research questions to achieve underlying aim of the research are drafted below:
To what extent, PM practices used in the Libyan construction industry are different or
similar from those utilised in UK construction industry
Which factors hinder the adoption of significant PM practices in the Libyan
construction industry?
How Libya can adopt modern PM practices to avoid construction cost/time overruns?
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Chapter 2: Literature Review
2.1 Introduction
This chapter provides an overview of the UK and Libyan construction industries. The
discussion also includes a comprehensive literature review on PM practices in Libyan and
UK construction sectors. In addition, factors that hinder the adoption and implementation of
PM practices are also the part of the debate.
A diagram of theoretical framework is depicted in figure 2.1 which illustrates that this study
is based on investigating the role eight PM practices in the UK and Libyan construction
industries. The comprehensive investigation through survey and literature evidences allows
the researcher to devise a set of suggestions and recommendations to Libyan construction
industry to adopt modern PM practices undertaken in the UK construction industry to avoid
time and cost overruns.
Figure 2.1: Theoretical framework of the study
`
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2.2 Overview of UK and Libyan Construction Industries
The construction industry in any country is interrelated with many other industries due to its
complex procedures and an assembly of several building components such as land, materials
and equipment (Kwakye, 1998). In the words of Gorgenländer (2011), construction industry
is a “sector of national economy engaged in the preparation of land and construction,
alteration, and repair of buildings, structures, and other real property” (p. 14). Each
construction project is different on the basis of its nature, type, and size and therefore requires
professional skills and knowledge to complete it on time within estimated budget. The unique
characteristics of construction projects help construction parties (e.g. client, project manager,
contractor, consultant) to combine various activities and technologies with each other in an
organised manner. The activities in construction industry largely depend on design, planning,
government policies, tools and techniques, and the structure of the buildings. This is the
reason that construction industry is highly vulnerable to slumps and booms in the economy.
2.2.1 Construction Industry in Global Context
The worldwide construction industry trends have shown considerable growth in different
economies. Several researchers believe that construction industry plays a vital role in the
development of an economy. Giang and Pheng (2010) assert that the construction industry is
a vital contributor to an economy’s growth that interlinks many industries with each other.
Bosch and Philips (2003) suggest that the contribution of the construction industry to a
country’s development can be measured through its GDP contribution. They estimated that
construction industry contributes nearly 10 percent to the world GDP. Another study
conducted by Crosthwaite (2000) reveals that the construction industry in developed
countries contributes around 6 to 9 percent to GDP; but the figure is different in case of
developing countries which accounts for 3 to 5 percent. Lowe (2003) argued that the
contribution in developed countries is between 7 to 10 percent; and the range in developing
countries is 3 to 6 percent. Thus the contribution of the construction sector to the world’s
economy cannot be ignored in any case.
2.2.2 Construction Industry of Libya
The economy of Libya is largely based on oil revenues which accounts for nearly 80%. The
other sectors including construction industry are comprised of 20%. The country produces
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nearly £41.4 billion GDP each year, and the per capita income of Libya is highest in the
region which was approximately £7,190 in 2011 (Ngab, 2007). Libya lacks adequate water
resources; in fact, it is considered as one of the poorest countries in terms of limited water
resources.
The construction industry in Libya contributes around 5.2% to gross GDP and it provides
work to nearly 3.2% of the total workforce (Ngab, 2007). The Libyan construction sector has
experienced several reforms over the past five decades. Since the early 1950s, the
construction sector in Libya has played a vital role in the development of its economy when
the country became independent from the Italian occupation. At the beginning, construction
activities were performed for social purposes but with the passage of time it emerged into
people’s cultures and values, and consequently the skills and knowledge were transferred
generation to generation. Therefore, the vast experience and enriched skills of the
construction participants allow Libya to improve the infrastructure of the country by
increasing the volume and scale of construction activities (ibid).
The country faced a construction boom during 1970s when it was ranked as one of the
frequent consumers of cement. In the past two decades Libya has planned and constructed
‘The Great Man Made River’ project which is considered as one of the world’s biggest water
projects. The public sector in Libya played a central role in developing country’s
infrastructure in the context of economic and social development plans. Between 1990 and
2010, the public sector organisations successfully completed 86% construction projects
(Ministry of Planning, 2011). But the industry faced some serious problems in the past due to
heavy reliance on foreign experts (Ngan, 2007).
Time and cost overruns are the most frequent problems in Libyan construction projects.
Several studies mentioned that most of the public construction projects faced concurrent
construction delays during design and construction phases (Hatush et al. 2005) and most of
the local and international bodies failed to achieve quality outcomes due to some critical
causes of delays where contractor and client organisations are mostly responsible for a
majority of delays due to lack of adopting adequate project management practices (Hamzah
et al. 2011). According to Abounahia (1998), more than 70% public construction projects
were delayed in Libya due to several crucial factors. Abubaker et al. (2008) reported 69%
construction project suffered from delays and only 31% finished on time and within the
estimated budget since 2000 to 2008. Another recent study reveals that more than 50%
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construction projects in Libya are cost/time overrun (Hamzah et al. 2011). However, the ratio
is decreasing due to the adoption of some innovative project planning techniques.
2.2.3 Construction Industry of the United Kingdom
The construction industry in the UK is extremely diverse and a key deliverer of major public
construction projects (Murdoch and Hughes, 2002). The construction industry in the UK
contributes around 8% to the gross GDP and provides employment to nearly 2.1 million
people in the country (CIA World Factbook, 2012). The UK construction industry is popular
in terms of using innovative planning techniques and procurement methods (Cashman and
Preene, 2012). The industry has contributed in developing several landmark projects globally,
either on the basis of construction or in design and management. The project managers,
consultants, and contractors from the UK are invited internationally due to their new
knowledge and modern working methods. Many UK consultants established their offices in
the South East of England and London as they can be approached and consulted easily for
huge infrastructural projects within and outside the country. The importance of British
Standards and Codes, and the skills and knowledge of UK professionals is evident from their
engagement to work in rebuilding World Trade Centre after the disastrous event of 9/11
(Winch, 2010).
Over the past two decades, the construction output is declined due to the impact of the
adverse economic downturn and recession effects (BBC News, 2012a), as the output in 1990s
was ranked at third with 12% of total European output (Meikle, 1999). Additionally, the
construction industry is adversely affected hit by the 2008 recession. Limited availability of
mortgage and weak household incomes also prevent construction activities in the UK. The
builders are more focused on selling existing sites rather than investing money on
constructing new buildings. As the country is recovering well from the recession, so it is
forecasted that the construction sector will grow nearly double in value over the next five
years (BBC News, 2012b).
2.3 Construction Project Management
The construction project management concept emerged in the literature of construction in the
mid 1970s and today it is considered as one of the key practices to prevent construction
projects from time and cost overruns. The construction project management allows
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construction parties to plan, coordinate, and control entire project activities in a systematic
and organised manner in order to accomplish the projects on time and within the estimated
budget (Walker, 2007). This can lead to fulfilling the requirements of the client in producing
financial and quality-wise feasible project.
2.3.1 The Construction Project Lifecycle
A construction project is considered to be unproductive if it is failed to produce a quality
physical product that does not meet the requirements of the client. The completion process of
any construction project requires four essential steps such as project initiation, project
planning, project execution, and project closure (Westland, 2007) as shown in the diagram of
Project Lifecycle (PLC) in figure 2.2.
Figure 2.2: The Project Life Cycle
Source: Westland (2007, p. 4)
Project initiation phase refers to some significant activities including defining project scope,
problem identification, finding alternate solutions, and feasibility study. In the project
planning phase, several plans such as resource plan, financial plan, quality plan, risk plan,
communication plan, procurement plan, and timeframes are set to achieve project’s core aim.
Project execution phase mainly refers to the implementation of plans devised at the planning
stage; and finally, project closure involves terminating all project activities and handing over
project deliverables to the client (Westland, 2007).
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2.3.2 The General Construction Process
In the opinion of Walker (1996, 2007), the construction process is an open system which is
composed of different resources and activities necessary to complete the project. The
resources are the inputs to the construction process and typically include land, labour, capital,
materials, and equipment. The construction process is carried out by a dedicated team of
professionals who transforms the inputs to desired outputs. This transformation process is
greatly influenced by the environment of the construction project. An open system of
construction process described by Walker (1996, 2007) is depicted in figure 2.3.
Figure 2.3: The Construction Process
Source: Walker (1996, p. 84)
The model of Walker (1996) is closely related to the descriptive model of Mohieldin (1989).
According to Mohieldin (ibid) descriptive model, condition and resources are the two
inherent inputs in a construction process. The input resources are same as described by the
Walker (1996) such as land, labour, capital, materials, equipment, and the external
environment or the criteria as laid down for the construction. The output of the model
indicates required physical product in the form of the building as shown in figure 2.4.
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Figure 2.4: Descriptive Model of Mohieldin
Source: Mohieldin (1989)
2.4 Causes of Time/Cost Overruns in Construction Industry
The causes of time/cost overruns vary from country-to-country due to several technological,
environmental, and topographical factors. Shebob et al. (2012) conducted a comparative
study to investigate the core factors causing cost/time overruns in the UK and Libya.
According to them, ‘contractor-related factors’ followed by ‘client-related factors’ are the
most influencing factors causing delays in both construction industries. In explaining
contractor-related factors from Libya point of view, they ranked ‘inadequate PM practices’
and ‘lack of appropriate equipment’ as two foremost factors causing time/cost overruns.
From the UK perspective, their study uncovers the fact that many cost/time overruns are
occurring because contractor firms employ ‘inadequate planning tools’.
2.4.1 Libyan Perspective
The study of Abubaker et al. (2008) addresses the causes of delay in the Libyan construction
industry. The survey study discloses that design-related, client-related, contractor-related, and
project management related factors are the prominent issues causing time/cost overruns.
Similarly, Tumi et al. (2009) in their study identified and ranked 43 factors influencing
construction projects in the Zentan city in Libya. They claim that most of the issues occurred
due to lack of PM practices. They ranked project management related issues at the top of the
list followed by improper planning, lack of effective communication, design errors, and
supply chain management problems. They strongly emphasised the need of employing
appropriate PM practices particularly risk management to avoid cost/time overruns in the
industry.
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Another study in Libyan perspective was conducted by Memon et al. (2011) to explore the
causative factors leading to construction costs and time overruns. They identified total 78
factors from the literature and asked survey respondents to rank each factor according to their
knowledge and experiences. The survey results reveal that most of the problems occurred due
to either lack of PM practices or lack of project planning activities at design stage. The
research study also concludes that the project manager and other top management personnel
are reluctant to play their roles in adopting appropriate PM practices and planning tools.
2.4.2 UK Perspective
In 1985, Sullivan and Harris conducted their study to investigate major factors leading to
unanticipated cost and time overruns in large construction projects. They surveyed only civil
contractors, consultants, and clients. It was found that contractor-related factors followed by
client-related factors were the prominent causes of concurrent construction delays. Later on
the survey study of Jackson (2002) explores project cost overrun in the UK construction
industry. Their survey findings reveal consultant related factors and then project planning and
project management related issues are major factors causing cost overrun in the UK
construction industry.
Cannon (2008) highlights the cost/time overrun issues that UK construction industry faced in
the past two decades and also addresses challenges ahead. His survey study reveals that
contractor and consultant related issues are critical in the UK construction industry and due to
these reasons client organisations faced many health and safety issues, insolvency, and
legitimacy problems.
Falqi (2004) conducted his comparative study to address delays in construction project
completion. They categorise more than 70 cost/time overrun factors into five significant
categories such as contract related factors, consultant related factors, client related factors,
project management related factors, other factors. Their study reveals that contractor related
factors followed by consultant related factors are the core reasons for delays in the UK
construction industry.
2.5 Project Management Practices in Construction Projects
A number of experts and writers (e.g. Gould, 1999; Potts, 2010; Cheng et al., 2012) describe
best project management practices in the context of construction projects. The organisations
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worldwide implementing these practices reported high profits, quality results, high client and
employee satisfaction, improved safety, and minimised environmental effects. These
practices are explained in the following subsections.
2.5.1 Procurement
Procurement is a procedure of ascertaining a suitable method for monitoring and controlling a
construction project and choosing the best people to devise, deliver, and operate required
activities (Edum-Fotwe and McCaffer, 2001). Today, lump sum contracts and lowest price
tendering are the common methods for the selection of contractors and sub-contractors. But
latest procurement methods stress the need for choosing best organisations that can work well
in a collaborative environment, and also they understand and exercise the principles of
‘Partnering’ (ibid). Several procurement methods include: traditional/ conventional, design
and build, construction management, and integrated.
The procurement is the key problem in the construction industry of Libya as the construction
parties use conventional procurement methods based on lowest bidding policy. El-Hasia
(2005) found that procurement policy in Libyan construction industry is inadequate and lacks
in clarity in defining goals. He further explains that the procurement policy restricts public
construction parties to adopt new or innovative procurement methods that are more beneficial
in terms of achieving client’s objectives. As a result, the construction projects are cost and
time overrun.
In contrast to Libya, UK construction industry is popular in using new methods of
procurement. UK construction parties choose a procurement method for their projects on the
basis of contractual agreements in accordance with the client’s resources, policies, and
organisational structure. But the latest survey of Civil Engineering Contractors Association
(CECA) consisting of nearly 300 construction firms reveals that bureaucratic and delayed
procurement processes are damaging the UK construction industry (Reynolds, 2012).
2.5.2 Partnering
Partnering refers to establishing a system that encourages collaborative working approach
during different construction phases (Chan et al, 2006). This means that partnering is a
different but traditional approach in the construction context where all the parties work
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together to assist client in order to achieve project’s underlying objectives. Figure 2.5 shows
three essential features of partnering described by Bennett and Jayes (1995).
Figure 2.5: Features of Partnering
Source: Bennett and Jayes (1995, p. 84)
Libyan construction industry encourages collaborative working approach with local and
foreign companies (Ngan, 2007). Several foreign experts and companies are working on
major construction projects in Libya but in fact, the regulatory environment is restricted for
all foreign partners (Porter and Yergin, 2006). For instance, foreign partners cannot
participate in bidding, procurement, and tendering processes. Also, foreign firms cannot work
as main contractors for both commercial and residential construction projects. However, local
firms often act as key contractors and work with foreign sub-contractors on major
construction projects due to their new knowledge, expertise, and latest specialised equipment
(ibid).
In contrast to Libya, the judicial consideration of partnering in the UK is limited (Begg,
2003) as most of the private and public firms prefer to work own their own, or like to work
with local partners as they find themselves compatible in team working environment. Also,
the working methods/techniques of local partners are almost similar. A comprehensive report
of Egan (1998) emphasised the need of partnering and establishing long-term relationships
with foreign partners in order to learn new and effective ways to enhance the performance of
the UK construction sector.
2.5.3 Risk Management
Risk management in the construction context refers to a process of managing a construction
project in a way to identify and assess probable risks associated with the project and then
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finding a solution to mitigate the adverse impacts of those risks (Garlick, 2007). A general
risk management process for managing construction risks is depicted in figure 2.6.
Figure 2.6: Risk Management Process
Source: Madill (1999, p. 8)
In managing risks, risk identification is a significant and major part which usually
commences with discovering and categorising various risks related to the project. Hillson
(2009) highlights the importance of identifying risks prior to initiating a construction project.
Tools that can be used for risk identification include: checklist, interviews, surveys,
flowcharts, SWOT analysis, assumption analysis, Delphi analysis, and diagramming method.
The risk assessment stage refers to analyse significant risks either qualitatively or
quantitatively. A typical risk register is composed of risk categories, risk description, risk
likelihood, and risk consequence (Hillson, 2009). In addition, the risk register may also help
analyst to formulate a formal risk response strategy to treat risks at the next stage. But it is
important to constantly update the risk register throughout the pre-construction and
construction phases (Garlick, 2007).
After successfully identifying, assessing, and evaluating probable risks, an analyst needs to
develop and implement suitable risk response strategy to treat risks. The risks can be treated
in four ways: risk avoidance, risk retention, risk share/transfer, or risk reduction (Panthi et al,
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2007). Figure 2.7 presents a risk matrix which shows common construction risks and
treatment strategies.
Figure 2.7: Risk Matrix
Source: Panthi et al. (2007)
The survey study of Tumi et al (2009) reveals that risk management practices in Libya in
managing construction risks particularly delays are not standardised. They also found that
Libyan construction parties employ no or inadequate tools and techniques to identify and
analyse construction risks and as a result they face concurrent delays. In a comparative study
of delay factors in UK and Libyan construction sectors, Shebob et al (2012) concluded that
most of the main contractors in Libyan construction industry do not adopt any formal risk
management process and techniques but in contrast, UK and other foreign sub-contractors
working in Libya follow proper risk management tools and techniques.
UK professionals follow a formal risk management procedures and adequate risk
identification and risk assessment tools for managing construction risks (Ceric, 2003).
Another study conducted by Ghazali and Kabir (2009) found that critical risks are managed
effectively in the UK construction industry that ensures a successful delivery of the process.
Similarly, the probability of problems such as cost overrun and time overrun are very low in
the UK construction industry due to the adaptability of appropriate risk management tools
and techniques (Jackson et al, 1997).
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2.5.4 Value Management
Value management is an overall team-based and structured approach used to manage a
construction project. It encourages a logical and systematic process during the lifecycle of a
construction project to improve its quality and value. In fact, value management refers to a
complete-value procedure which includes two other key concepts such as value planning and
value engineering (Potts, 2010). Value planning is applied during the inception of the
construction project whereas value engineering is the procedure applied to other stages of the
construction project to ensure that all functional benefits required by the client are gained.
From Libyan perspective, Omran et al (2008) mentioned that value planning and value
engineering techniques are new and rarely used in the Libyan construction industry. Recently,
Youssef et al (2012) in their paper also indicate lack of value planning and engineering
techniques in Libya. Therefore, they suggest Libyan professionals to employ value planning
and engineering tools to save the construction costs and time.
In the UK, value management is mainly used to identify client’s requirements by taking into
consideration the quality, cost, time, and risk constraints (Institute of Civil Engineers, 1996).
Figure 2.8 shows a value management process illustrating the collaboration of construction
parties in managing cost and time at different stages of construction. In addition, the diagram
shows a process that carried out by the UK professionals throughout the Lifecycle of the
construction project in parallel with the risk management process.
Figure 2.8: The Value Management Process
Source: Institute of Civil Engineers (1996)
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2.5.5 Sustainable Construction
The term Sustainable Construction (SC) indicates the economic, social, and environmental
performance of the construction industry (Ding, 2008; Halliday, 2012; Kilbert, 2012). The
economic aspect refers more profitability and high returns to the investors who invest money
on people, processes, and products to improve the competitiveness of the construction
projects. This leads to greater satisfaction to the stakeholders and adds value to customers as
well. In social viewpoint, sustainable construction demonstrates the importance of fairly and
ethically treating employees and also providing them safe and sound environment (Kilbert,
2012).
The environmental aspect of construction is also very important in terms of protecting the
natural environment. The environmental aspect of construction is also very important in
terms of protecting the natural environment. In the UK, the environment is protected in
several ways such as reducing the energy consumption during construction, minimising
waste, avoiding water and air pollution during construction, and protecting natural resources
including wildlife, trees, habitat, waterways etc. (Halliday, 2012). The sustainable
construction policies in UK prevent local residents from inconvenience of noise and dirt. The
Environment Agency in the UK is responsible for conducting biodiversity surveys and also to
ensure that: construction wastes are properly managed, energy and water resources are
properly utilised, and monitoring actions to reduce carbon emissions (UK Environment
Agency, 2012).
The sustainable construction is also given high importance in Libya during infrastructural
activities. It is evident in the literature that Libya emphasises on sustainable construction with
a particular focus on energy and water use in the project lifecycle (Bindra et al, 2003). In
addition, the environment and social concerns are also important during local and commercial
infrastructural activities. In Libya, sustainable construction is the responsibility of a particular
government department associated with the construction industry. This department ensures
that constructions in the country are meeting the requirements in all three aspects i.e.
economic, social, and environment (Li, 2012).
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2.5.6 Benchmarking
The benchmarking concept in the context of construction means developing a logical and
systematic method of improving quality by measuring and assessing performance against
other construction organisations (Drew, 1997). Benchmarking lead the construction firm to
ensure what is achieved and which areas needs improvement to perform well in future
projects. The Key Performance Indicators (KPIs) under benchmarking concept provide
guarantee for the achievement of ‘Best Value’ for both private and public sector
organisations in the construction industry (Halliday, 2012). In addition, the KPIs allow
construction companies to satisfy construction clients and other stakeholders in terms of cost,
time, safety, quality, profitability, and productivity. Figure 2.9 illustrates a general
benchmarking process that can be applied to the construction projects to achieve ‘Best
Value’.
Figure 2.9: Benchmarking process
Source: Drew (1997, p. 430)
Hammad et al (2011) analysed entire construction process of Libyan constructions and found
that the major barrier to improving performance is lack of proper benchmarking by the
construction parties. They admit that benchmarking practices exist in Libyan construction
sector but they are disorganised. They emphasised on the adoption of a realistic benchmark
framework for improvement in the industry. In contrast, Alarcón et al (1996) emphasised the
need of collaborative benchmarking in the UK construction sector. Benchmarking with the
development of individual KPIs emerged in the UK construction industry in 1999 after the
encouraging paper from Egan (1998) ‘Rethinking Construction’. The investigation of Costa
et al (2006) reveals that benchmarking is adopted by many construction companies in their
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normal practice but still they are lacking in some particular areas or KPIs in improving
performance.
2.5.7 Supply Chain Management
The supply chain management concept has recently emerged in the literature of construction
industry (Potts, 2010). It refers the integration of entire operations, resources, and people
involved in the delivery of the finalised product i.e. building to the client. The major actors in
the supply chain management in the context of construction industry include material and
equipment suppliers, distributors, manufacturers, installers, and intermediaries such as
designers, contractors, sub-contractors, consultants, project managers, and the client
organisation (Akintoye et al, 2000).
The supply chain management of cement industry is adversely affecting Libyan construction
industry in terms of inventory costs (El Dubee and Hokoma, 2012). This is because of the
miscommunication of between cement manufacturers and construction parties. The research
of Alghadafi and Latif (2010) also shows an increasing demand for developing supply chain
management systems with different methodologies to assist Libyan construction parties for
minimising costs.
On the other hand, supply chain management concept in the construction context emphasised
by Egan (1998) in his paper ‘Rethinking Construction’. However, Akintoye et al (2000)
confirmed that supply chain management in the UK is at the basic level and still needs to
grow at extended level. Only contractors are found with extended knowledge and skills in
planning supply chain activities in construction. The researchers identified four significant
barriers to success in managing the supply chain: basic level of knowledge of supply chain
management philosophy, inadequate support systems, organisational culture, and lack of
senior management commitment. The Department of the Environment, Transport and the
Regions (2000) of UK developed a comprehensive framework so-called ‘supply chain cube’
that allows construction firms to integrate individual KPIs with cost, time, quality,
construction parties, and techniques to improve supply chain management. The framework is
available in figure 2.10.
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Figure 2.10: Supply Chain Cube
Source: Department of the Environment, Transport and the Regions (2000, p. 12)
2.5.8 Lean Construction
Lean construction refers to the organisation and management of construction activities by
focusing on understanding the meaning of value for the client. In reality, the lean concept
primarily refers to removing or minimising waste/disruption of the overall construction
process in order to maximise the overall value. Sacks et al (2010) describe five elementary
principles of the lean construction that result in improved project performance and facilitate
easy and transparent delivery process. The five principles are: understanding the client’s
perspective of value, recognise and assimilate value-driven processes, eliminating or reducing
waste/disruption from the processes, focus on desired product with desired value, and
continuous improvement in operations.
The literature suggests that a public authorised body ‘Lean Construction Institute’ (LCI) has
been established in Libya since 2005 to help and peruse construction stakeholders to adopt
lean construction but it is still not officially adopted and practiced by the construction
industry (Abubaker et al, 2008). Similarly, Alsadey et al (2010) claim that lack of lean
construction concept in Libyan construction industry triggered several common defects such
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as structural defects, intrusion damps, detachment, defect related to water, and cracks in
Libyan buildings.
On the other hand, Egan’s (1998) report ‘Rethinking Construction’ inspired UK authorities to
develop Construction Lean Improvement Programme (CLIP) in 2003 to facilitate
construction stakeholders in order to improve their knowledge, skills, values, and financial
performance (BRE Trust, 2012). A new concept of ‘Lean Supply Chain’ given by CLIP is
also emerging in the UK construction industry to manage manpower, equipment, materials,
and quality delivery of the construction projects. Mossman (2009) confirmed that lean
construction is evident in the UK but it is piecemeal and disorganised. The construction
parties are slowly adopting and implementing lean concept.
2.6 Benefits of Project Management Practices
Practicing several PM practices is beneficial to the construction stakeholders in various
aspects. In this section, the benefits of different PM practices are discussed briefly.
Anumba and Evbuomwam (1997) identified that procurement is the key problem in the
construction industries worldwide but applying proper procurement methods can be
advantageous in several ways such as: improved communication, shortening of lead times,
greater price certainty, and contractor’s involvement in the design process. Some experts and
theorists like Ashworth (1996) highlight the positive impacts of procurement methods on
cost, budgeting, and tendering estimates in pre-contract studies.
In describing the benefits of partnering in the construction context, Egan (1998) reported that
it tends to enhance the performance of the projects and gives rise to quality output. Similarly,
Rojas (2009) asserts that partnering approach helps construction stakeholders to positively
enhance the working relationships and bring effective communication while working in a
team environment. Furthermore, it eliminates non value-added tasks from the entire
construction process and promotes conflict resolution.
Burtonshaw-Gunn (2009) states that employing different risk management tools and
techniques during construction process account for several benefits such as reducing the
impact of unforeseen events, improving safety, providing effective monitoring and control,
enhancing communication between construction stakeholders, and encouraging positive
attitude towards the management of risks (p. 10). Similarly, Edwards and Bowen (1998)
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reported three foremost advantages of risk management practices such as avoid time/cost
overruns, monitoring and control, and reduced environmental impact.
Value management including value engineer methodology is closely related to other concepts
like TQM, sustainable construction, six sigma, life cycle costing, and lean construction. In the
opinion of Al-Yousefi (2004), the value engineering process during design and construction
phases is subject to reduce cost, improve performance, continuous improvement and provide
quality project delivery. In fact, value management is primarily beneficial for construction
clients to gain all functional as well as cost benefits. Also, it is a kind of project management
practice that usually results in high client satisfaction by saving costs and preventing
concurrent delays (Kelly et al. 2008).
Sustainable construction highlights economic, social, and environmental benefits by reducing
the costs of energy and raw materials (Ding, 2008). Economic benefits mainly refer high
profitability of the construction firm by preventing cost/time overrun whereas social benefits
surround the rights of employees and other construction stakeholders. Furthermore, the
environmental benefits show the provision of safe and sound environment for people and
community around the construction site (Kilbert, 2012). In developed countries, sustainable
construction gives extreme importance to: reduce energy consumption, reduce waste, avoid
air and water pollution, reduce carbon emissions, and protecting natural resources such as
wildlife, trees, habitat, and waterways.
Today, benchmarking is considered as an important element of project management practices
in construction projects. Benchmarking in construction industry measures true productivity
and results in better performance in meeting client’s requirements (Rojas, 2008). This means
that benchmarking allows construction firms to satisfy clients in terms of cost, time, safety,
quality output, and high profitability. In addition, it helps both private and public construction
organisations to measure business excellence and achieving best value in the construction
industry (Kelly et al. 2009).
According to Walker and Alber (1999), each construction project is required to reduce project
timeframe, reduce costs, and improve quality delivery. Supply chain management due to its
holistic nature has the prospect to resolve such issues and challenges. Supply chain
management is subject to several functional benefits due to integration of entire operations,
resources, people, and processes. In addition, it helps the management to provide better
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service, reduce costs and paperwork, and effectively organise inventories (Ahmed et al.
2002). Stanford et al (1999) found that professionally managed supply chain relationships
provide effective monitoring and control which usually result in low transaction costs.
Lean construction like sustainable construction and benchmarking helps construction
participants to enhance performance and timely delivery of the project by eliminating waste
from the entire construction process (Green, 2011). In construction context, the waste
represents the disruption or intervention of factors that cause time/cost overruns. Egan (1998)
in his paper ‘Rethinking Construction’ highlights the importance of lean construction to:
enhance performance, achieve higher returns, and continuous improvement.
2.7 Factors Hinder the Adoption of Project Management Practices
The literature study reveals several factors that hinder the adoption of Project Management
(PM) practices in the construction projects. For example, Ogunlana et al (1996) from
Thailand assert that the lack of top management devotion and varying owner requirements
are the foremost factors that affect the decision making power of managers for adopting PM
practices particularly lean construction and value management. According to Dissanayaka
and Kumaraswamy (1999), environmental, economic, and social issues are common
obstructing factors in achieving project success by applying PM practices. Chan and
Kumaraswamy (2002) highlight five factors that narrow down the scope of project
management activities in the construction industry in Hong Kong. They are: ineffective
communication, modifications in project scope, social and cultural factors, conflict between
construction parties, and inconsistency in client needs. Pheng and Chuan (2006) conducted
their research on Asian construction industry perspective and consequently given importance
to internal and external environmental factors to finish projects within the time limit and
estimate budget. Ling and Bui (2010) from Vietnam reported five significant factors such as
fear of change, intense conditions of accomplishing a project on time, too much bureaucracy,
poor communication, and inadequate governance.
A lot of studies in the UK perspective appreciate the role of PM practices in achieving project
success (Munns and Bjeirmi, 1996; Baker et al. 2008) but they also found some problematic
factors having a slight impact on the adoption of modern PM practices in the construction
industry. For instance, Munns and Bjeirmi (1996) identified top three factors hindering the
success of project management activities. They are: change in project’s scope, economic
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factors, and time factors. Baker et al (2008) also agreed with Munns and Bjeirmi (ibid) but
they further added that construction participants sometimes avoid adopting recently evolved
PM practices due to extreme pressure of project delivery time, and therefore they stick to use
traditional practices. Similarly, Franke (2010) claims that environmental and economic issues
are the prominent factors that hamper the implementation of PM practices in the UK
construction industry to some extent.
Egan (1998) and Begg (2003) highlighted the fact that the judicial system of the UK
sometimes restricts few inherent PM practices such as partnering. Egan (1998) emphasised
the need of partnering and establishing long-term relationships in order to avoid time/cost
overrun of the construction projects. Similarly, Costa et al (2006) claim that benchmarking in
the context of PM practices is adopted by several UK construction firms but still the industry
is lacking in some particular domains due to changes in scope of the project as well as
changing client requirements.
On the other hand, several studies highlight the factors influencing the role of project
management practices in Libya. For example, Tumi et al (2008) and Shebob et al (2012)
emphasised the need of employing skilled, experienced, and knowledgeable workforce to
practice different project management activities to avoid construction delays. Furthermore,
they regarded ‘bureaucracy’ as a key issue needs to be resolved to achieve underlying
benefits of PM practices. It is found from the literature review that value management,
benchmarking, and risk management are not properly practiced in Libya due to lack of
knowledge about modern PM practices (Omran et al. 2008; Shebob et al. 2012). Moreover,
fear of change, wrong person as project manager, and lack of top management commitment
are also the influencing factors that hinder the proper implementation of PM practices in the
Libyan construction industry (Tumi et al. 2009; Hammad et al. 2011).
Some project management practices such as supply chain management in Libyan
construction industry are also not implemented properly and subject to several problems due
to miscommunication between stakeholders (El Dubee and Hokoma, 2012) and as a result
many construction projects are cost overrun. Similarly, Alsadey et al (2010) claim that the
lack of top management commitment and lack of the latest knowledge and skills are
hindering Libyan construction industry to adopt lean construction concept and value
management which results in many structural problems in the buildings.
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2.8 Summary
The chapter concludes that Libyan construction parties are not adopting latest project
management practices such as procurement, risk management, value management,
benchmarking, supply chain management, and lean construction for improving their
performances on the basis of cost, time, and quality. As a result, they are experiencing delays
and other construction risks. On the contrary, most of the UK construction parties take into
account proper procurement, risk management, value management, sustainable construction,
and supply chain management as best project management practices. However,
benchmarking, lean construction, and partnering are practiced at the basic level and therefore
disorganised.
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Chapter 3: Research Methodology
3.1 Introduction
In this chapter, research methodology of the research is discussed in detail which mainly
includes research philosophy, research design, research methods, and overall research
approach. Moreover, the method adopted for data collection and data analysis are also the
major part of the discussion. The chapter concludes with the discussion on research ethics,
data resources used, and limitations of the research.
3.2 Methodology of the Research
Generally, the research methodology of the research represents various tasks, methods,
approaches, analyses, and philosophy employed by the researcher to complete a particular
research. Inherently, it provides a systematic procedure of resolving research problems using
different types of data collection and analytical techniques. The research methodology is a
broad concept which addresses entire activities of the research but this concept is always
mystified with research methods that only provide tools and technique to achieve research
key objective (Taylor et al. 2006). Several models and frameworks have been developed in
the past to represent activities of the research in social science disciplines but Saunders et al
(2007) introduced a comprehensive framework namely ‘research onion’. In this framework,
they divided research tasks into six essential steps as shown in figure 3.1.
Figure 3.1: Research Onion of the Dissertation
Source: Saunders et al. (2007 p.132)
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3.3 Philosophy of the Research
Research philosophy helps the researcher to address key research questions by developing
knowledge about the topic and understand the nature of that knowledge (Saunders et al.
2009). In this research, the researcher has chosen realist philosophical paradigm which is the
combination of positivist and interpretivist paradigms. Table 3.1 illustrates a comparison
between positivist and interpretivist philosophical approaches.
Table 3.1: Positivist vs. Interpretivist
Characteristics Interpretivist Positivist
Research approachResearch approach Inductive Deductive
Research goalsResearch goals Perceptive, strong arguments Descriptive, valid arguments
KnowledgeKnowledge Relative (social, value-bound) Absolute (science, value-free)
Perception of realityPerception of reality Socially constructed, manifold Based on objectives, single or few
Researcher-subjectResearcher-subject relationshiprelationship
Flexible, participative cooperative Inflexible, rigid, uncooperative
Techniques/methods/Techniques/methods/ analysisanalysis
Case studies, document reviews, interviews
Laboratory & field experiments, statistical & content analysis, surveys
Ontology Ontology Reality and researcher are separable Reality and researcher are inseparable
Data typeData type Qualitative Quantitative
Sources: Decrop (2006, p. 47) and Weber (2004, p. 4)
Realist paradigm is adopted because it contains the characteristics of both paradigms.
Following a positivist paradigm, the researcher employed a survey technique to investigate
key differences between the PM practices adopted by the UK and Libyan construction
sectors. In this regard, the responses, comments, and contributions of the construction
participants from both countries are collected, measured quantitatively, and analysed using
various analytical tools. On the other hand, interpretivist approach is employed to identify
which PM practices are currently employed by the construction companies to avoid
problematic issues such as cost and time overruns. The adoption of realist paradigm helped
the researcher to develop a set of recommendations for Libyan construction industry on how
they can adopt PM practices currently undertaken in the developed countries particularly in
the UK.
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3.4 Research Design
Research design can be exploratory or descriptive. In this research, the researcher has
adopted exploratory research design because the research problem is not properly answered
in the past. Also, to avoid chronic issues of time and cost overruns in the Libyan construction
industry, it is essential to address questions like how Libyan construction industry is different
from the UK particularly in terms of project management practices. Another reason for
adopting exploratory research design is to address underlying research questions in a
precisely manner by exploring information about PM practices currently undertaken by
Libyan and UK construction industries. For this purpose, extensive literature is reviewed and
detailed survey is conducted. The idea of adopting descriptive research design is dropped
because this research is not based on any known information or hypothesis; and also no
laboratory or field experiment is required to prove any hypothesis (Richey and Klien, 2007).
3.5 Research Approach
The approach of this research can be described in two ways: qualitative vs. quantitative and
deductive vs. inductive.
3.5.1 Qualitative vs. Quantitative
Fellows and Liu (2009) prefer a combination of qualitative and quantitative approaches so-
called triangulation to conduct research in the Construction Project Management (CPM)
context. They believe that a study in CPM context requires subjective (or theoretical) as well
as statistical interpretation and analysis. On the basis of the requirements of the research and
also due to the nature of research questions, the researcher has chosen triangulation research
approach. Another foremost reason for selecting a mixed approach is to gain the benefits of
both approaches, and also to reduce the impact of controversy between them (Bryman, 2008).
The qualitative approach is chosen to develop knowledge surrounding key PM practices
adopted by the UK and Libyan construction industries. In this regard, the differences between
key PM practices of two countries are identified and expressed in words, facts, and evidences
from the literature. On the other hand, the survey data are analysed quantitatively using
various statistical techniques. The quantitative analysis helps the researcher to find out
statistically significant differences between PM practices of the two nations. Furthermore, the
results of quantitative analysis are also critical to provide recommendation how Libyan
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construction parties can adopt PM practices currently undertaken in the UK construction
industry.
3.5.2 Deductive vs. Inductive
Deductive and inductive are the two research approaches in terms of reasoning. The
researcher follows a deductive approach throughout this research because identifying key PM
practices requires a top-down strategy to address research questions. This means that the
research needs to be originated with more general concepts and summarised with precise
ideas and conclusions (Bryman 2008). In this research, sufficient data is available on PM
practices but no or little research has been conducted to explore the ways how developing
countries can adopt these techniques adopted by the developed countries. This was another
reason of preferring deducting approach as it is more descriptive and confident in drawing
strong conclusions when a large amount of data is available (ibid).
During the survey, the researcher asked specific questions to the respondents about PM
practices they use. This also refers to deductive learning where respondents are not required
to discuss general themes of interest (Saunders et al 2009). Furthermore, in contrast to
inductive approach, deductive approach allows comparisons or analysis in terms of a
theoretical framework (ibid) which is the inherent part of this research to find differences
between the practices adopted by the UK and Libyan construction industries.
3.6 Research Methods
The selection of appropriate research methods allows the researcher to effectively achieve
core aim of the research. In this research, the researcher is not only aiming to develop
knowledge, but his goal is also to highlight key problematic factors that hinder Libyan
construction industry to adopt modern PM practices. Today, scientific and historical methods
are the two commonly used research methods. Historical research method is employed in this
study to gather data through online survey method and applying quantitative techniques to
analyse and accomplish results (Fellows and Liu, 2009). Furthermore, the data is also
collected from several authentic secondary sources such as books, journals, and internet
where extensive care is taken to include reliable information from the internet. In contrast,
scientific method is inappropriate for this study as this research is not based on testing
hypothesis and drawing conclusions on the basis of laboratory or field tests (ibid).
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The following process is followed by applying the historical research method in this study:
1. Identification of the research problem and establishing the need for certain knowledge
2. Collecting adequate and relevant information about the research problem to set a
scene to form research questions
3. Careful consideration and verification of knowledge acquired from various sources
4. Analysing relevant information and results, and drawing of conclusions; and
5. Recording of results and conclusions in a significant manner
3.6.1 Methods used for Data Collection
Today, a combination of primary and secondary data collection methods is commonly used in
most studies (Saunders et al. 2009). In this research, the researcher also used a mixture of
both approaches to investigate which PM practices are adopted by Libya and UK
construction industries. Also, to address to what extent PM practices used by Libyan
construction industry are different as compared to practices utilised by UK construction
industry. The discussion as follows justifies the researcher’s decision of choosing a
combination of both methods of data collection.
3.6.1.1 Primary Data Collection Method
The primary data collection method refers to collecting first-hand data from people
using various methods (Saunders et al. 2009). Due to lack of exact information about PM
practices in the Libya and UK construction sectors, it was necessary to use primary data
collection method using questionnaires. Therefore, the researcher used descriptive survey
method using close-ended questionnaire to record the opinions of construction participants
from both countries. A descriptive survey method helped the researcher to ascertain the
experiences and perceptions of survey respondents, in a structured manner, about project
management practices used in both countries. Similarly, the close-ended questionnaire is used
because it is simple and quick to answer and also can be easily analysed using statistical
techniques (Bryman 2008). The questionnaire was designed in two languages: in English for
the UK participants; and in Arabic for Libyan respondents. An extensive care was taken to
provide clear guidelines on how to fill the questionnaire. In addition, the participants were
informed about the core aim and underlying questions of the research (Bryman and Bell
2007).
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The questionnaire was structured in a significant manner by dividing it into three significant
parts: (1) personal information including gender and experience; (2) general information
about construction projects undertaken by the respondents; and (3) specific information about
PM practices used by the respondents in carrying out construction projects. Due to quickly
approaching submission deadline for this thesis, the questionnaire was distributed to 120
construction participants in Libya and UK through email. After sending the questionnaires,
the researcher followed-up with many participants over the phone in order to receive
maximum responses on time.
3.6.1.2 Secondary Data Collection Method
Secondary data collection method refers to collecting second-hand or processed
information from various informative sources (Saunders et al. 2009). In this research, the
secondary data is collected from a range of sources which include: project management
books, construction management journals, construction-related news and case studies, and
authentic internet sources. As unauthentic data and unreliable information may lead
insufficient and wrong results (Bryman and Bell, 2007), so an extensive care was taken to
collect data from secondary sources especially from the internet magazines, news, and
articles.
3.6.3 Limitations of the Research Methods
As stated in section 3.6.1 that descriptive survey method using close-ended questionnaires is
used to acquire primary data in this research. However, several limitations are associated with
the questionnaire method when using in construction field. According to Singh (2001),
questionnaires are inappropriate in construction especially when respondents are unknown
and researcher is not aware of their actual experience, position, and skills of the respondents.
Similarly, it is difficult to conduct and manage in-depth surveys using a questionnaire.
Denscombe (2010) asserts that “questionnaires can bias the findings towards the researcher’s
rather than the respondent’s way of seeing things” (p. 170).
In this study, questionnaires are sent through email to investigate PM practices used by
construction participants in the UK and Libya. Few limitations applied to online
questionnaires are as follows:
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o Based on just email addresses, it could be difficult to draw appropriate samples
o Most of the experienced construction participants in Libya are not much familiar with
computers, and occasionally they get technical problems while filling online
questionnaire due to lack of information technology (IT) knowledge and skills
o Lack of assistance for filling an online questionnaire can also lead less reliable data
Some limitations are also associated with secondary data in this research. For instance, lack
of information on some PM practices (e.g. value management, benchmarking, and lean
construction) employed by the Libyan construction industry.
3.6.3 Reliability and Validity of Data
In order to overcome above mentioned limitations, the questionnaire was designed in both
English and Arabic languages and clear instructions were provided on how to fill the
questionnaire. The researcher has working relationships with many professionals in the
Libyan construction industry, so he emailed questionnaires to them for authentic and timely
response. After sending the questionnaires, the researcher also contacted them over the phone
to assist them if in case they are experiencing any problem in filling the questionnaire. Due to
the above considerations, the probability and impact of research method limitations are
mitigated to a great extent and lack of researcher’s support and subject accountability while
filling online questionnaire cannot be questioned. Furthermore, Cronbach’s Coefficient Alpha
(Cα) test is performed on the data collected through survey in order to check the reliability of
the data. The results of this test in section 4.3 demonstrate the reliability and validity of the
primary data. On the other hand, to avoid issues of unreliability and incredibility of secondary
data, the researcher collected secondary information from authentic sources such as project
management and construction related books, journals, and newspapers.
3.7 Data Analysis
Data analysis step refers to systematically and critically investigating, presenting, organising,
and interpreting key findings of the research to draw meaningful conclusions (Bryman and
Bell, 2007). In this study, Statistical Product and Service Solutions (SPSS) and Microsoft
Excel are used to analyse primary data. SPSS program is used because it enables easy and
simple procedure to conduct various statistical analyses. In this study, rank correlation
analysis is performed using SPSS.
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Rank correlation analysis is used to find correlation between the rankings of different factors
according to the survey participants from both countries (Black, 2009). The rank correlation
is calculated using Spearman’s formula (ibid) stated below:
On the other hand, Microsoft Excel is used to exhibit data/information graphically using
stylish tables, charts, and graphs. Furthermore, three important questions are included in the
questionnaire where respondents are asked to rate each option using a Likert scale. The
answers of the respondents are ranked using Relative Index (RI) formula stated below:
Where, nx = number of respondents marked option ‘x’. Table 3.2 illustrates the ranking
criteria for RI formula
Table 3.2: Ranking criteria
X N Ranking
5. Very important 30 1.0
4. Important 47 0.8
3. Somewhat important 20 0.6
2. Not important 15 0.4
1. Neutral 8 0.2
120
RI Calculation,
R.I. = [1(8) + 2(15) + 3(20) + 4(47) + 5(30)] / 120(5)
= 436 / 600 = 0.73 (important)
Sources: Sambasivan and Soon (2006) and Doloi et al. (2011)
The research methods, research approach, and data collection methods adopted in this study
are presented graphically in figure 3.2.
Figure 3.2: Triangulation research approach
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3.8 Sample and Population of the Study
The population of the study is mainly based on construction participants (e.g. owners,
contractors, consultants, project managers, engineers) from Libyan and UK construction
sectors having at least 7 years of practical experience. The construction participants
particularly contractors were selected who are usually involved in public building
constructions. The participants from construction industries are chosen because they are
incessantly involved in the process of all construction phases. Therefore, they are well aware
of the PM practices utilised in construction sectors of both countries.
The email addresses of Libyan construction participants were acquired from two sources: (1)
using personal relations (2) from the website http://www.libyabusiness.com. The researcher
has more than 5 years experience of working with construction professionals in Libya, so he
used his personal relations to acquire email addresses of most of the construction participants
and asked them to fill the questionnaire with their best knowledge and experience. Some
email addresses of engineers and project managers were acquired from libyabusiness.com
website. On the other hand, most of the email addresses of UK construction participants were
obtained from foreign partners working in Libya. In addition, Yell.com and Europages.co.uk
websites helped the researcher to contact UK professionals through their email addresses.
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The selection of Libya and UK construction industries is also based on some reasons. Libya
as an example of a developing country is selected because the country is facing many
problems in finishing construction projects on time and within the estimated budget. Most of
the problems are evident due to lack of modern PM practices. On the other hand, UK as a
developed country is selected because UK construction companies are popular worldwide in
employing latest PM practices. This will consequently help the researcher to formulate a set
of recommendations for Libyan construction industry on how latest PM practices can be
adopted in an effective manner.
3.8.1 Sample Size Determination
According to Dattalo (2008), sample size can be determined by selecting the number of
observations to include in a statistical sample. He described the following formula for
choosing sample size.
N =Z2 P(1 – P)
C2
Where
N = Sample size required
Z = Confidence level
P = Estimated prevalence of malnutrition
C = Confidence interval
Sample size calculation:
Z = 1.96 (1.96 is the standard value of 95% confidence interval)
P = 0.05 (1-0.95)
C = 0.09 (9% margin of error)
N = 1.962∗0.5∗(1−0.5) = 118.57 ≈ 119
.092
3.9 Resources Used
In this research, three significant resources are used respectively: information technology
resources, human resources, and monetary resources (Larson 2007). The information
technology resources refer to the use of computer for accessing journals and e-books. Also,
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data analysis and interpretation, thesis writing, and other online activities are performed using
computers. The human resources include all construction participants who participated in the
survey by providing their useful opinions. Also, the researcher gained benefits from useful
tips and guidelines of supervisor, university staff, professors, and seniors. Finally, monetary
resources include little stationary and printing charges. Throughout this research, the
university assisted the researcher in providing many important resources for conducting this
research. For example, books in the library, access to journal databases, internet facility, and
timely guidance and support.
3.10 Research Ethics
Research ethics are very important to conduct any research particularly in the academic
domain (Fellows and Liu 2009). Throughout this research, the researcher has adopted all
necessary precautions in terms of research ethics. Following are some ethical considerations
undertaken by the researcher.
o A sincere attempt is made to obtain correct and meaningful qualitative and
quantitative data from authentic sources especially from construction journals and
construction participants from the UK and Libya
o The respondents were informed about the purpose of the research by outlining the aim
of the research
o The questionnaire was designed in Arabic for Libyan participants, and in English for
UK respondents
o The researcher followed-up participants to get maximum responses but nobody was
forced to contribute to the study
o Finally following the data protection regulations, no personal or general information
is revealed while presenting and interpreting the results
3.11 Research Limitations
The current research has two limitations:
1. Time was a limiting factor because the construction industry is one of the huge
industries where construction participants are very busy in meeting the schedule. So,
normally they do not have time to fill questionnaires. As a result, the researcher found
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it extremely hard to follow-up participants for getting maximum questionnaires back
on time. But due to personal relations in the Libyan construction industry, the
researcher was successful in obtaining appropriate responses on time.
2. The findings and conclusion of this research are derived from the answers, opinions,
experiences, and observations of construction participants from both countries.
However, it is believed that human observations and perceptions about a reality are
not always same in social science disciplines (Dahms and Hazelrigg, 2010)
3. Some evitable limitations associated with statistical analytical techniques can also
affect the results to some extent
3.12 Summary of the Chapter
In this research, the researcher has chosen realist philosophical paradigm to investigate key
differences between PM practices adopted by the UK and Libyan construction sectors. The
exploratory research design is adopted to effectively address chronic issues of time and cost
overruns in the Libyan construction industry by finding the answers of each research question
in this study. The researcher adopted triangulation research approach for two purposes: to
develop knowledge surrounding key PM practices used by the UK and Libyan construction
industries; and also to analyse data quantitatively using statistical techniques.
Survey method using online questionnaires is used to gather primary data about PM practices
employed by construction industries in the UK and Libya. Relative Index, descriptive
analysis, correlation, and reliability analysis are conducted to analyse primary data. The
flowchart in figure 3.3 shows an entire research process.
Figure 3.3: Research process
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Chapter 4: Results and Analysis
4.1 Introduction
This chapter contains the results and analysis of the survey data to achieve research aim. The
data is analysed quantitatively using various statistical and mathematical techniques such as
Relative Index (RI), rank correlation, and data reliability analysis. The collected data is
organised in frequency tables given in appendix B.
4.2 Description of Acquired Data
The primary data was obtained through descriptive survey using close-ended questionnaires.
The main purpose of investigating public opinions was to find key differences and
similarities between PM practices used in Libya and UK. In this regard, 60 questionnaires
were emailed to the construction professional of each country. Figure 4.1 shows that the
researcher received total 69 questionnaires back: 26 from the UK and 43 from Libya. Table
4.1 exhibits demographics of the respondents where all 69 respondents were males from both
countries. The table also shows that most of the survey participants have more than 10 years
experience.
Figure 4.1: Survey respondents Table 4.1 – Respondent’s demographics
Gender Experience
MaleFemal
e< 10Y > 10Y
UK 26 0 5 21
Libya 43 0 8 35
4.3 Data Reliability Test
The data reliability test was performed by calculating Cronbach’s Coefficient Alpha (Cα)
through SPSS. The following test criteria designed by Doloi (2009) was used to determine
whether the data is reliable.
Cα>0.9 Excellent0.9>Cα>0.8 Good
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0.8>Cα>0.7 Acceptable0.7>Cα>0.6 Questionable0.6>Cα>0.5 PoorCα<0.5 Unacceptable
It is clear from the above criteria that the value of Cα should be between 0 and 1 where value
closer to 1 is considered more appropriate. The results illustrated in table 4.2 indicate the
reliability and standardisation of primary data obtained during the study.
Table 4.2 – Reliability analysis
Questionnaire (Part I) Cα Questions Result
General information 0.751 5 Acceptable
Questionnaire (Part II) Cα Questions Result
Project management techniques & practices 0.838 8 Good
Ranking Questions Cα Elements Result
Q1.5 Causes of cost/time overrun 0.797 7 Good
Q2.3 Benefits of project management practices 0.811 9 Good
Q2.5 Factors hindering adoption of PM practices 0.953 14 Excellent
Overall data reliability 0.844 Good
4.4 Respondent’s Designation
Q1.2: What is your position in the company?
The respondents were asked about their position/designation in the construction company.
The questionnaires were filled by different types of professionals including the owner,
engineer, consultant, and project manager, but most of the respondents from both countries
were either contractors or sub-contractors as shown in figure 4.2 and 4.3.
Figure 4.2: UK Professionals Figure 4.3: Libyan Professionals
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4.5 Type of Construction Projects
Q1.3: What type of construction projects you are involved in?
The survey participants were enquired about which type of construction projects they
normally undertake. It was found that 38% UK respondents conduct medium size project,
35% do small sized, and 27% likes to work on large size construction projects. On the other
hand, 40% participants from Libya undertake large size projects, 37% do medium size, and
finally 23% works on small sized construction projects as shown in figure 4.4 and 4.5.
Figure 4.4: UK Respondents Figure 4.5: Libyan Respondents
4.6 Number of Projects Time/Cost Overrun
Q1.4: How many of your construction projects were time or cost overrun in the past?
The above question was asked to know the ratio of time/cost overrun projects in the past. It is
quite amusing that total 26 Libyan participants said that 70% of their projects were either
time or cost overrun. Similarly, 11 respondents marked 50 to 70% which is also a high
percentage. In contrast, most of the UK participants said that their projects were finished
within the allocated budget and predetermined timeframe. Only 5 out of 26 UK participants
said that their projects were 30% cost/time overrun. Figure 4.6 shows these details.
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Figure 4.6: Projects cost/time overrun
4.7 Causes of Time/Cost Overrun Projects
Q1.5: Please rank causes of cost/time overrun
With reference to the previous question, the researcher asked the respondents to rank each
factor causes time/cost overrun on the basis of their knowledge and experience. For this
purpose, 1-7 scale was provided where 1 means least cause and 7 represents major cause. The
responses of participants are ranked using Relative Index (RI) technique.
Table 4.3 – UK Perspective
Causes of time/cost overrunLeast Cause Major Cause
Tot
al
R.I
Ran
k
1 2 3 4 5 6 7
Contractor-related factors 0 2 3 4 3 5 9 26 0.753 1Inadequate project planning tools 2 2 2 2 4 7 7 26 0.720 2Consultant-related factors 2 2 3 2 6 7 4 26 0.676 3Project manager-related factors 4 3 5 5 3 3 3 26 0.544 4Lack of proper project management practices 5 5 4 5 2 3 2 26 0.489 5
Owner-related factors 6 5 4 4 5 1 1 26 0.451 6External factors 7 7 5 4 3 0 0 26 0.368 7Total 26 26 26 26 26 26 26
Table 4.3 reveals that according to the UK respondents, ‘contractor-related factors’ followed
by ‘inadequate project planning tools’ with respective RIs of 0.753 and 0.720 are the key
factors that often cause time/cost overrun of the project. Similarly, they ranked ‘consultant-
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related factors’ and ‘project manager-related factors’ at the third and fourth places. Among all
several causes of time/cost overrun, ‘external factors’ are the least influencing factors causing
construction delays in the UK.
Table 4.4 – Libya Perspective
Causes of time/cost overrunLeast Cause Major Cause
Tot
al
R.I
Ran
k
1 2 3 4 5 6 7
Lack of proper project management practices 1 2 4 6 7 11 12 43 0.751 1
Inadequate project planning tools 2 4 5 6 6 8 12 43 0.701 2Contractor-related factors 3 3 5 7 5 10 10 43 0.688 3Owner-related factors 6 7 4 6 7 8 5 43 0.578 4Consultant-related factors 7 9 7 9 7 3 1 43 0.472 5Project manager-related factors 11 10 9 4 6 2 1 43 0.409 6External factors 13 8 9 5 5 1 2 43 0.402 7Total 43 43 43 43 43 43 43
On the other hand, table 4.4 reveals Libyan perspective on causes of time/cost overrun. The
table shows that ‘lack of proper project management practices’ with highest RI of 0.751,
followed by ‘inadequate project planning tools’ with RI 0.701 are the major factors that
influence construction projects in Libya. ‘Contractor-related factors’ and ‘owner-related
factors’ are ranked at third and fourth places whereas ‘external factors’ with lowest 0.402 RI
are considered as least causing factor that results in time/cost overrun in Libya.
Table 4.5 – Ranking comparison
Causes of time/cost overrunRanking
Libya UKLack of proper project management practices 1 5Inadequate project planning tools 2 2Contractor-related factors 3 1Owner-related factors 4 6Consultant-related factors 5 3Project manager-related factors 6 4External factors 7 7
Table 4.3 and 4.4 reveal somewhat different ranking results for causes of time/cost overruns
in Libya and UK. A comparison of two different perspectives is made in table 4.5 which
shows that two factors i.e. ‘lack of adequate project planning tools’ and ‘contractor-related
factors’ are common in the list of top three influencing factors that hinder projects to be
completed on time and within the estimated budget. However, the result of Spearman’s rank
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correlation ‘r’ = 0.43 (see calculation in table B1 in appendix C) reveals no major differences
between the opinions of construction participants from both countries about causes of
time/cost overruns.
4.8 Importance of Project Management Practices
Q2.1: Do you agree that project management practices are important to avoid cost or time overruns?
The above question was asked from the respondents to find out the significance of PM
practices to avoid cost/time overruns. As shown in figure 4.7 and 4.8 that a majority of
respondents marked ‘yes’ by agreeing with the importance of PM practices for successfully
completing construction projects without concurrent delays.
Figure 4.7: UK Respondents Figure 4.8: Libyan Respondents
4.9 Use of Project Management Practices
Q2.2: Which project management practices you are practicing during the construction process?
The above question was included in the questionnaire to determine which PM practices used
in the construction industries in both countries. It is found that the UK construction industry
is implementing all PM practices comprehensively. But half of the UK respondents said that
they are not using ‘partnering’ as a PM practice. On the other hand, the case of Libya is
different compared to the UK. A majority of the Libyan respondents is practicing
procurement, partnering, sustainable construction, supply chain management, and lean
construction. But benchmarking and risk management techniques are not adopted by almost
half of the respondents from Libya. For example, Total 19 out of 43 (44%) said that they are
practicing risk management; and similarly 25 out of 43 (58%) said that they employ
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benchmarking technique. Interestingly, value management is rarely practiced in the Libyan
construction industry. Only 6 participants (nearly 14%) reveal that they are implementing
value management during the construction process. Figure 4.9 provides a holistic picture of
scenario explained above.
Figure 4.9: Project management practices in UK and Libya
4.10 Benefits of Project Management Practices
Q2.3: Please rank each benefit of applying project management practices in construction
project
It was also asked from the respondents to provide their opinions about the benefits of PM
practices in construction projects. For this purpose, nine most significant benefits were
identified and included in the questionnaire and respondents were asked to rank them
according to their preferences and knowledge. Table 4.6 presents the benefits of project
management practices which are ranked according to the responses of UK respondents using
R.I. technique.
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Table 4.6 – UK Responses
Benefits of Project Management Practices
Least Benefit Major Benefit
Tot
al
R.I
Ran
k
1 2 3 4 5 6 7 8 9
Prevent cost and time overruns 1 1 0 1 2 6 3 5 7 26 0.756 1Effective monitoring and control 0 1 1 3 1 3 5 7 5 26 0.752 2High client and employee satisfaction 0 1 1 2 5 5 3 5 4 26 0.705 3Quality output 1 2 2 4 5 1 5 4 2 26 0.611 4Minimised environmental effects 4 3 1 2 4 5 2 2 3 26 0.547 5Improved safety 2 4 3 4 3 3 4 1 2 26 0.521 6Continuous improvement 6 4 6 2 2 1 3 0 2 26 0.406 7High profits 4 5 4 6 4 1 0 1 1 26 0.397 8Enhanced performance 8 5 8 2 0 1 1 1 0 26 0.303 9Total 26 26 26 26 26 26 26 26 26
Table 4.6 shows that the responses of UK participants against each benefit are substantial but
‘prevent cost and time overruns’ followed by ‘effective monitoring and control’ with
respective RIs of 0.756 and 0.752 are the foremost benefits they gained by applying PM
practices in the construction projects. Similarly according to the UK respondents, ‘high client
and employee satisfaction’, ‘quality output’, and ‘minimised environment effects’ are ranked
next to top two benefits. It was interesting to find that UK respondents believe that ‘enhanced
performance’ is the least benefit they received while exercising project management
practices.
Table 4.7 – Libya Responses
Benefits of project management practices
Least Benefit Major Benefit
Tot
al
R.I
Ran
k1 2 3 4 5 6 7 8 9
Prevent cost and time overruns 1 2 3 5 3 4 6 10 9 43 0.713 1High profits 3 1 3 4 7 3 5 7 10 43 0.682 2Quality output 2 4 5 3 9 3 7 6 4 43 0.602 3Minimised environmental effects 5 3 4 6 3 7 4 2 9 43 0.592 4Effective monitoring and control 4 5 7 7 2 3 6 4 5 43 0.543 5High client and employee satisfaction 6 3 7 3 5 7 3 6 3 43 0.537 6Continuous improvement 7 7 5 3 7 5 6 2 1 43 0.465 7Enhanced performance 7 8 5 7 3 4 5 3 1 43 0.447 8Improved safety 8 10 4 5 4 7 1 3 1 43 0.419 9Total 43 43 43 43 43 43 43 43 43
On the other hand, table 4.7 shows that ‘prevent cost and time overruns’ with highest RI of
0.713, followed by ‘high profits’ with second highest RI of 0.682 are the major benefits
received by Libyan construction participants. Similarly, ‘quality output’, ‘minimised
environmental effects’, and ‘effective monitoring and control’ are ranked at third, fourth, and
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fifth places. Unlike UK respondents, ‘improve safety’ is the least benefit they gained by
implementing project management practices.
Overall Libyan perspective on benefits of PM practices is quite different compared to the UK
respondents. Table 4.8 indicates the differences in the rankings of benefits. Furthermore, the
table shows that participants from both countries are agreed that ‘prevent cost and time
overruns’ is the greatest benefit of project management practices. But their opinion differs
about other benefits they received by applying project management practices in construction
projects. However, the result of Spearman’s rank correlation ‘r’ = 0.43 (see calculation in
table B2 appendix C) reveals no major differences between the opinions of construction
participants from both countries about the benefits of project management practices.
Table 4.8 – Ranking comparison
Benefits of Project Management Practices
RankingLibya UK
Prevent cost and time overruns 1 1High profits 2 8Quality output 3 4Minimised environmental effects 4 5Effective monitoring and control 5 2High client and employee satisfaction 6 3Continuous improvement 7 7Enhanced performance 8 9Improved safety 9 6
4.11 Adequacy of Project Management Practices
Q2.4: Do you agree that project management practices in Q2.5 are enough to achieve benefits given
in Q2.6?
The above question was asked from the respondents to confirm if project management
practices are enough to achieve benefits in table 4.7. As shown in figures 4.10 and 4.11 that a
majority of respondents from both countries marked ‘yes’.
Figure 4.10: UK respondents Figure 4.11: Libyan respondents
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4.12 Factors Affecting the Adoption of Modern Project Management
Practices
Q2.5: Please rank factors that hinder your organisation to adopt modern project
management practices
Finally, a list of most problematic factors that hinder the adoption of project management
practices was provided to the respondents to rank each factor according to their experience
and knowledge in the industry. Table 4.9 contains the ranking results of UK participants
where top five factors are: (1) extreme pressure of project delivery time, (2) changes in scope
of the project, (3) economic factors, (4) environmental factors, and (5) fear of change.
Table 4.9 – Ranking of problematic issues (UK perspective)
Factors influencing project management practices Neu
tral
Not
Im
p
S. I
mp
Imp
.
V. I
mp
Tot
al
Rel
ativ
e In
dex
Ran
k0 1 2 3 4
F5 Extreme pressure of project delivery time 1 1 3 4 17 26 66.92 1F10 Changes in scope of the project 0 1 2 11 12 26 66.15 2F12 Economic factors 0 0 5 9 12 26 65.38 3F14 Environmental factors 0 1 4 10 11 26 63.85 4F3 Fear of change 0 2 5 7 12 26 62.31 5F1 Lack of top management commitment 0 1 6 9 10 26 61.54 6F6 Changing client requirements 1 1 6 7 11 26 60.00 7F8 Poor governance 1 1 5 10 9 26 59.23 8F11 Lack of communication between construction parties 1 2 7 4 12 26 58.46 9F4 Conflict between construction parties 1 2 6 7 10 26 57.69 10F13 Social and cultural factors 1 2 4 12 7 26 56.92 11F2 Lack of knowledge, experience, and skills 1 0 10 7 8 26 56.15 12F7 Excessive bureaucracy 0 0 11 10 5 26 55.38 13F9 Wrong person as project manager 1 1 9 9 6 26 53.85 14
In contrast to the UK perspective, the Libyan ranking results are totally different. According
to the Libyan perspective, first five problematic factors that hinder the adoption of project
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management practices are: (1) changes in scope of the project, (2) lack of knowledge,
experience, and skills, (3) fear of change, (4) lack of top management commitment, and (5)
excessive bureaucracy. The ranking results showing Libyan perspective are illustrated in
table 4.10.
Table 4.10 – Ranking of problematic issues (Libya perspective)
Factors influencing project management practices Neu
tral
Not
Im
p
S. I
mp
Imp
.
V. I
mp
Tot
al
Rel
ativ
e In
dex
Ran
k
0 1 2 3 4
F10 Changes in scope of the project 2 2 5 6 28 43 66.05 1F2 Lack of knowledge, experience, and skills 1 2 3 16 21 43 65.12 2F3 Fear of change 1 1 6 17 18 43 63.26 3F1 Lack of top management commitment 1 1 9 12 20 43 62.79 4F7 Excessive bureaucracy 0 3 8 13 19 43 62.33 5F9 Wrong person as project manager 3 1 8 15 16 43 58.60 6F6 Changing client requirements 1 3 10 14 15 43 58.14 7F8 Poor governance 2 2 9 16 14 43 57.67 8F13 Social and cultural factors 2 4 10 11 16 43 56.28 9F4 Conflict between construction parties 2 1 15 11 14 43 55.81 10F12 Economic factors 0 1 18 15 9 43 54.88 11F11 Lack of communication between construction parties 2 4 8 19 10 43 54.42 12F5 Extreme pressure of project delivery time 1 2 15 16 9 43 53.95 13F14 Environmental factors 4 3 11 12 13 43 52.56 14
The differences between the rankings are clearly evident in table 4.11. In addition,
Spearman’s ranking correlation result ‘r’= –0.23 (see calculation in table B3 appendix C)
also reveals major differences between the opinions and experiences of Libyan and UK
construction participants about problematic issues they faced in adopting project management
practices in the past.
Table 4.11 – Ranking comparison
ID Problematic Factors Ranking
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Libya UKF10 Changes in scope of the project 1 2F2 Lack of knowledge, experience, and skills 2 12F3 Fear of change 3 5F1 Lack of top management commitment 4 6F7 Excessive bureaucracy 5 13F6 Changing client requirements 6 14F9 Wrong person as project manager 7 7F8 Poor governance 8 8F13 Social and cultural factors 9 11F4 Conflict between construction parties 10 10F11 Lack of communication between construction parties 11 3F12 Economic factors 12 9F5 Extreme pressure of project delivery time 13 1F14 Environmental factors 14 4
4.13 Summary of the Results
It is found that the data collected through the survey is reliable with Cronbach’s Alpha (Cα)
value 0.844 which is considered ‘good’. The most important findings of this chapter are
stated below that will help the researcher to formulate a set of recommendations in the
conclusion chapter.
1- The results of Q1.4 expose the fact that over 50% construction projects in Libya are
usually time or cost overrun
2- Top three most significant causes of time/cost overruns in Libya are ‘lack of proper
project management practices’, ‘inadequate project planning tools’, and ‘contractor-
related factors’.
3- A majority of Libyan participants agreed that project management practices are
important and adequate to avoid the cost/time overruns
4- The results of Q2.2 reveal that Libya is not properly practicing risk management,
value management, and benchmarking techniques in the construction projects
5- Finally, it was found that first five problematic factors that hinder the adoption of PM
practices in Libya are: (1) changes in scope of the project, (2) lack of knowledge,
experience, and skills, (3) fear of change, (4) lack of top management commitment,
and (5) excessive bureaucracy.
Chapter 5: Discussion on Findings
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5.1 Introduction
This chapter addresses the research questions with a reasoned discussion on the findings of
this research by comparing them with what is found in the literature review. In addition, this
chapter focuses on highlighting the fact that the current study will add value to the previous
studies related to the PM practices undertaken in Libyan and UK construction industry
context.
5.2 Causes of Time and Cost Overruns
The initial findings of this research reveal that more than 50% construction projects in Libya
are time/cost overrun compared to the UK where most of the projects are finished on time
and within the estimated budget. The survey results of this study are similar to Hamzah et al.
(2011) where they uncover the fact that more than half construction projects in Libya are
either time or cost overrun.
Similarly, the analysis of results of Q1.5 (see section 4.7) reveals that ‘lack of proper project
management practices’ is the top most influencing factor that causes time/cost overruns in the
Libyan construction industry. These research findings are somehow parallel to the survey
studies that have been conducted in the past for investigating the causes of time/cost overruns
in Libya (Tumi et al. 2009; Memon et al. 2011). Perhaps this is the reason that most of the
Libyan participants are agreed with the significance of PM practices to avoid cost/time
overruns.
In contrast to Libyan responses, UK perspective is different. UK participants do not give high
importance to the fact that lack of PM practices is the influencing factor causing time/cost
overruns in the UK construction industry. They in fact ranked this factor at fifth position in
the list of seven most influencing factors. According to the UK perspective ‘contractor-
related issues’ followed by ‘inadequate project planning tools’ are the key causes of time/cost
overruns in the UK construction industry. The studies of Jackson (2002) and Cannon (2008)
illustrate identical results.
On the basis of the findings of this research and evidences in the literature, it can be said that
time/cost overruns problems are greatly caused by lack of proper PM practices in the Libyan
construction industry. However, both UK and Libyan participants are agreed that ‘contractor
related factors’ and ‘inadequate project planning tools’ are the common issues amongst top
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three problematic factors causing cost/time overruns in the construction projects in Libya and
UK.
5.2 Similarities and Differences between Libyan and UK PM Practices
The analysis of the results of Q2.2 in section 4.9 reveals many similarities and differences
between UK and Libyan construction industries in terms of PM practices. It is evident from
the survey results as well as from the literature review that both Libya and UK undertake
procurement as a primary PM practice but literature study reveals that the approach of using
procurement methods is entirely different between the two countries. Libyan construction
industry adopts the policy of using traditional procurement methods which are mainly based
on lowest bidding strategy and often lack of clarity in defining goals (El-Hasia, 2005). On the
contrary, UK construction industry is popular in terms of employing innovative procurement
methods in accordance with the client’s resources, policies, and organisational structure
(Reynolds, 2012).
Partnering is also encouraged in both countries, but UK companies are somehow reluctant to
adopt the full-fledged partnering practice due to the limited judicial considerations (Begg,
2000). This is also clear from the mixed responses of UK participants where half of the
respondents said they do not adopt partnering practice. In contrast, a high response rate (93%)
of Libyan construction participants reveals that they promote partnering as a significant PM
practice at all levels but with some restrictions for foreign partners (Porter and Yergin, 2006).
The construction industries of the UK and Libya are also different from each other in terms of
practicing risk management in construction projects. The survey study shows that many
Libyan construction companies (56%) even do not bother to adopt any risk management tool
to avoid cost/time overruns. This finding relates to the study conducted by Tumi et al. (2009)
and Shebob et al. (2012) where they argued that most of the construction delays are evident
in the Libyan construction industry due to lack of adequate risk management tools. On the
other hand, a majority of the UK participants (nearly 92%) in this study said that they use risk
management tools to avoid concurrent construction delays. This fact is also highlighted in the
study of Ghazali and Kabir (2009) where they identify the role of risk management tools
employed in hospital construction projects in the UK to mitigate the impact of cost/time
overruns.
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The proper utilisation of benchmarking technique is another major difference between PM
practices of two countries. It is found that many Libyan construction companies (approx.
42%) do not use any benchmarking technique to develop a systematic framework to enhance
quality by measuring and analysing performance against other construction companies. On
the other hand, a majority of UK participants (88%) adopts benchmarking to provide
guarantees for the achievement of ‘Best Value’. The previous research in this respect
discloses that benchmarking practice adopted by the UK and Libyan construction industries
are disorganised and still at the basic level (Costa et al. 2006; Hammad et al. 2011).
Therefore, these researches emphasised the need for collaborative benchmarking techniques
in construction industries in both countries.
Value management as a PM practice is rarely utilised in Libyan construction industry (Omran
et al. 2008). This is also evident from the responses of Libyan construction participants where
only 6 out of 37 (almost 16%) admitted that they are using value management during the
lifecycle of a construction project to improve its quality and value. Conversely, the study
findings demonstrate that a majority of UK construction participants employs value
management technique to identify the needs of the clients on the basis of cost, time, quality,
and risks (Institute of Civil Engineers, 1996).
It is interestingly found from the survey results that more than 88% participants from both
countries give high priority to sustainable construction to meet social, economical, and
environmental standards. This finding also confirms the fact highlighted in the literature
review that particular government department in Libya, and Environment Agency in the UK
have encouraged construction industries to adopt sustainable construction as significant PM
practice (UK Environment Agency, 2012; Li, 2012). Furthermore, some survey studies
conducted in Libya and UK ensure that both countries are almost similar in properly
managing construction wastes, utilising waste resources, monitoring actions, and reducing
carbon emissions (UK Environment Agency, 2012; Halliday, 2012).
The use of supply chain management in the construction industries of both countries is
evident from the survey results where 92% UK participants and nearly 93% Libyan
participants admitted that they use it as a significant PM practice. Just like benchmarking,
supply chain management is also practiced at basic level in the UK (Akintoye et al. 2000)
due to inadequate support systems, lack of top management commitment, and basic level of
knowledge of supply chain philosophy. Similarly, these problems are also evident in Libya;
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plus miscommunication between manufacturer and supplier also causes many problems in the
Libyan construction industry in the context of supply chain management (El Dubee and
Hokoma, 2012).
The literature evidences suggest that lean construction concept is not officially implemented
in the Libyan construction projects (Abubaker et al. 2008) but the results of this study are
different. It is found from the results that most of the Libyan construction participants (86%)
adopted lean construction concept to organise and manage construction activities by focusing
on the understanding the meaning of value for the client. However, it is also exposed that due
to lack of adequate knowledge in this domain, they faced many critical issues and defects in
the infrastructure of buildings. Similarly, it is interestingly found that all UK participants said
that they use lean construction concept in their projects but literature study confirmed that
this adoption process is quick but in fact it is piecemeal and disorganised (Mossman, 2009).
Furthermore, survey investigation reveals that both UK and Libyan participants agree with
the benefits of PM practices to improve the productivity of construction projects. According
to survey participants from both countries, five top most benefits of PM practices, with a
back and forth ranking are: (1) prevent time or cost overruns, (2) high profits, (3) quality
output, (4) minimised environmental effects, and (5) effective monitoring and control. These
results are in line with several studies that have been conducted in the past. But those studies
describe the benefits of different PM practices and unfortunately there is hardly any study
available in the literature which states the collective benefits of PM practices as a whole.
5.3 Factors that Hinder the Adoption of PM Practices
Furthermore, it was found from the survey analysis that first five problematic factors that
hinder the adoption of PM practices in Libya are: (1) changes in scope of the project, (2) lack
of knowledge, experience, and skills, (3) fear of change, (4) lack of top management
commitment, and (5) excessive bureaucracy. On the other hand, top five factors from UK
perspective include: (1) extreme pressure of project delivery time, (2) changes in scope of the
project, (3) Economic factors, (4) Environmental factors, and (5) fear of change.
Apart from few similarities, several major differences are found in the opinions of the UK
and Libyan participants regarding the factors that hinder the adoption of PM practices in
construction industries. It is evident from the ranking results (see tables 3.9 and 3.10) that
participants from both countries are agreed with Munns and Bjeirmi (1996) and Baker et al.
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(2008) that ‘change in scope of the project’ is the top most influencing factor that affects the
adoption of PM practices in the UK.
Furthermore, Libyan participants regarded ‘lack of knowledge, experience, and skills’ as the
second influencing factor in this study. This issue is also raised in previous researches that the
Libyan construction industry lacks in adequate knowledge, experience, and skills for
applying PM practices and this is the reason that the industry is facing too many concurrent
delays from last three decades (Tumi et al. 2008; Shebob et al. 2012). But on the other hand
UK perspective is different in this regard. They consider that ‘lack of knowledge, skills, and
experience’ as one of the least factors that hinder PM practices in the UK construction
industry. This is may be because UK construction industry employs highly qualified and
skilled personnel to deliver quality outcomes.
The ranking results of ‘fear of change’ and ‘lack of top management commitment’ also
slightly differ. For example, Libyan participants rate ‘fear of change’ at third number and UK
participants rate it at fifth position. Similarly, ‘lack of top management commitment’ is
ranked in fourth place by Libyan participants whereas it is positioned at sixth number by UK
respondents. In Libya construction participants are reluctant to adopt different PM practices
(Hammad et al. 2011) as they are afraid to use innovative techniques due to lack of time and
excessive pressure for finishing projects on time. Similarly, ‘lack of top management
commitment’ is a common factor between two countries which is given importance by
promoting it in the list of top five influencing factors.
Another major difference in ranking is found with respect to ‘excessive bureaucracy’ in
adopting PM practices. From Libyan perspective, bureaucracy is the major factor hindering
the success of adoption of PM practices. The ranking results reveal that ‘excessive
bureaucracy’ is not given high importance by UK participants perhaps due to the fact that
bureaucracy element is not common in the UK economy compared to the Libyan economy
(Baker et al. 2011).
From the UK perspective, two factors ranked at third and fourth positions are ‘economic
factors’ and ‘environmental factors’. Both these factors are highly important in the UK to
adopt recently evolved PM practices. The reason of their importance in the construction
industry is the inflexibility of predetermined budget and environmental standards in the UK
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(Franke, 2010). From Libyan perspective, these factors have a least impact in the
construction industry for adopting PM practices.
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Chapter 6: Conclusions
6.1 Introduction
This chapter contains the conclusion of the current study which is based on the underlying
objective that was set in the beginning of the research. In addition, this chapter also includes a
set of appropriate recommendations on how Libya can adopt latest PM practices undertaken
in the UK construction industry to avoid time/cost overruns. The limitations and future
research directions are also the part of the chapter.
6.2 Conclusion
The construction industry in every country is different in terms of project’s infrastructure,
size, nature, cost, time limit, and desired quality standard. These constraints make it difficult
for the construction stakeholders to manage all activities on time and within the
predetermined budget. As a result, construction projects in many countries often face delays.
The Project Management (PM) practices are inherent in this regard to achieve construction
project’s quality by hindering the causes of cost and time infested. Therefore, this study is
significant to investigating the role of PM practices in Libya compared to the UK to avoid
current problems associated with crossing predetermined time limit and costs. In addition, the
research also signifies the importance of eliminating the factors that hinder the adoption of
PM practices in the construction industry. To achieve core aim and underlying research
questions effectively, the study followed a combination of qualitative and quantitative
approaches. The findings and conclusions of the study are based on both types of data i.e.
primary and secondary.
The construction industry in Libya contributes around 5.2% of GDP to the country’s
economy. Since 1950s the construction industry has passed through several reforms and
undertaken many big projects. During the study, it is concluded that more than 50% of the
construction projects are time/cost overruns due to several causation factors where lack of
PM practices is one of the most critical issues that often result in delays. Other prominent
factors include: inadequate project planning tools, contractor-related factors, and client-
related factors.
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In contrast to Libya, the UK construction companies are popular in the world in terms of
using latest PM practices and delivering best quality construction outcomes and this is the
reason that UK construction professionals are welcomed worldwide to avoid construction
related time/cost overruns. Apart from this, the construction industry is also experiencing
cost/time overruns due to: contractor-related factors, employing inadequate planning tools,
and consultant-related factors. The construction industry in the UK contributes around 8% of
GDP to the Kingdom’s economy but the recent economic downturn had an adverse impact on
the demand of the construction activities and the industry faced a considerable decline. The
government is keen to stimulate the economy and it is predicted that the construction sector
will grow nearly double in value in this decade.
The study reaches the conclusion that an adequate use of PM practices is inherent to avoid
cost/time overruns in the construction industry. Overall it can be said that Libya is vulnerable
in adopting modern PM practices compared to the UK. Although the Libyan construction
industry is implementing procurement, partnering, sustainable construction, supply chain
management, and lean construction; but these practices are not standardised and practiced at a
very basic level due to lack of skills, knowledge, and experience of project managers and
other key construction professionals. Consequently, the industry is still facing concurrent
cost/time overruns.
On the other hand, most of the UK construction firms adequately adopted PM practices
except partnering. Partnering has not received much attention due to limited judicial
consideration. Also, some PM practices (e.g. value management, supply chain management,
and lean construction) adopted by the UK construction industry are piecemeal and
disorganised due to lack of sufficient attention in these domains. However, the industry is
worldwide popular in implementing risk management tools, sustainable construction, and
benchmarking.
There are few similarities but several differences between the PM practices undertaken in
Libyan and UK construction industries. For example, both countries give high importance to
sustainable construction in managing construction wastes, utilising waste resources,
monitoring actions, and reducing carbon emissions. Similarly, supply chain management is
also practiced in both countries at the basic levels and therefore needs greater improvements.
But on the other hand, both countries are different in terms of practicing procurement,
partnering, risk management, value management, benchmarking, and lean construction. Apart
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from partnering, most of the PM practices are undertaken in a professional way in the UK but
due to lack of skills, knowledge, and abilities of key construction professionals these
practices are not adequately implemented in Libya. Although, the PM practices in Libya are
not standardised compared to the UK but Libyan construction professionals are aware of the
role of PM practices in preventing cost and time overruns in order to satisfy client with the
delivery of quality output with minimised environmental effects and improve safety.
Another noteworthy part of this study is the identification of factors that hinder the adoption
of PM practices in the construction industry. The study concludes that these factors vary
country-to-country depending on the environment, regulations, culture, economic and social
condition, and other similar constraints.
Apart from few similarities, several major differences are found in the opinions of the UK
and Libyan participants regarding the factors. For instance in Libya top five problematic
factors hindering the implementation of PM practices are: (1) changes in scope of the project,
(2) lack of knowledge, experience, and skills, (3) fear of change, (4) lack of top management
commitment, and (5) excessive bureaucracy. On the other hand, top five factors from UK
perspective include: 1) extreme pressure of project delivery time, (2) changes in scope of the
project, (3) economic factors, (4) environmental factors, and (5) fear of change. It is evident
from the ranking that only two issues i.e. ‘changes in scope of the project’ and ‘fear of
change’ are common in the list of top five factors that affect the implementation of PM
practices in both countries.
6.3 Set of Recommendations
Referring to the research problem in section 1.3, the construction industry in Libya is subject
to several issues where cost/time overrun problems are critical at this time when more than
50% construction projects are not finished on time and within the estimated budget. It is
concluded in the previous section that most of the problems occur mainly due to lack of PM
practices and a majority of construction participants agree that adequate use of PM practices
can be helpful in reducing time/cost overruns. Therefore, in this section the attempt is made
to devise a set of recommendations to suggest Libyan construction parties how they can adopt
modern PM practices undertaken in developed countries particularly in the UK to avoid
cost/time overruns. The suggestions and recommendations are as follows:
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1. The procurement policy in Libya is inadequate and lacks in clarity in defining goals.
Therefore, it is recommended to construction companies to: improve communication
within the industry to reduce conflicts; adopt new and innovative procurement
methods or commercial approaches; negotiate to create value for money; and to
conduct training on a regular basis on procurement and risk management.
Construction procurement management is the new procurement method that allows
clients for early contractor involvement to work closely with designers or architects to
speed up the procurement process (Lingard and Rowlinson, 2005).
2. The Libyan construction industry already supports collaborative working approach
but it could be a better practice to involve foreign partners in bidding, procurement,
and tendering processes as they can assist the local contractors to avoid difficulties in
early phases of the construction projects.
3. The risk management practices in Libya are not up to the mark. Therefore, it is
essential to develop proper risk identification, risk assessment, and risk response
strategies to effectively address cost/time overruns. Today, a number of tools and
techniques are available that can be used to identify, assess, and respond probable
risks in the construction industry. In this regard, the risk register is commonly used to
record possible risks according to the probability and consequence of each risk. These
risks can then be represented through risk map and probability impact index to
determine appropriate risk response strategy to treat them (Bartlett, 2004).
4. Value management is rarely used in the Libyan construction industry. It is important
to have full understanding about the value for client to complete construction projects
on time and within the estimated budget. Thus, Libyan construction participants are
required to bring ‘best value’ in the operational activities by implementing a value
engineering process which is composed of five basic steps such as: (1) information –
defining and understanding the nature of the problem, (2) speculation – generating
alternative ideas, (3) evaluation – assessing the feasibility of those ideas, (4)
development – developing and testing ideas, and (5) recommendation/implementation
– choosing the best solution and implement them (Woodhead and Downs, 2001).
5. Lack of proper benchmarking is also a major barrier to improving performance of the
construction industry in Libya which often cause time/cost overrun. The Libyan
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construction industry can conduct several client satisfaction surveys to develop KPIs
to improve performance. Among four different types of benchmarking methods (e.g.
internal, competitive, functional, and generic), Libyan construction companies can
adopt internal or functional benchmarking methods. Internal benchmarking can be
used to benchmark within the organisation such as among business units whereas
functional benchmarking method can be employed to benchmark similar processes
within the construction sector (McCabe, 2008). Furthermore, to reduce cost overruns,
a metric benchmarking technique can be used to make performance comparisons
using aggregative cost and construction information (McGeorge and Palmer, 2009).
6. Lack of supply chain management in cement industry in Libya is subject to several
delay problems. The industry can utilise ‘supply chain cube’ (see figure 2.9) to
manage the supply chain. The supply chain cube is a comprehensive framework
developed in the UK that suggests construction firms how to integrate individual KPIs
with cost, time, quality, construction parties, and techniques to improve supply chain
management throughout the project lifecycle (Department of the Environment,
Transport and the Regions, 2000).
7. Lean construction concept also needs to be standardised in Libyan construction
industry compared to the UK. Therefore, it is suggested to follow five principles of
the lean construction described by Sacks et al. (2010) to improve the performance of
the construction projects to facilitate easy and transparent delivery process. These
principles are: understanding the client’s perspective of value, recognise and
assimilate value-driven processes, eliminating or reducing waste/disruption of the
processes, focus on desired product with the desired value, and continuous
improvement in operations.
8. To address the factors that hinder the adoption and implementation of PM practices, it
is suggested to top management personnel to encourage modern PM practices by
conducting ongoing training sessions. These training sessions will help construction
participants to acquire new knowledge and enrich their skills. As a result, they will be
more confident in adopting new technology and techniques to devise solutions for
construction time/cost overruns.
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It is believed that the above recommendations will help Libyan construction industry to
achieve several benefits of PM practices and consequently the issues of cost/time overruns
will be mitigated to a great extent.
6.4 Research Limitations
The time was a restricting factor in addressing the research questions because it was not easy
to get rapid responses on time. But due to strong follow-up, the researcher managed to
receive considerable responses in time to complete this dissertation. Secondly, the major parts
of the findings and conclusion of this research are based on the perceptions and opinions of
construction participants and it is believed that human perceptions and ideas may not be
identical about the same concept.
6.5 Future Directions
The future research will be based on promoting value management and benchmarking
techniques of project management to improve the performance of the construction projects in
Libya. These practices will be chosen because they are not adopted by most of the
construction firms in Libya and therefore there is a need to develop awareness of the
importance of these techniques.
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Appendices
Appendix A: Questionnaire
Gender: ________________________________ Experience (in years): _____________________
PART 1: GENERAL INFORMATION
All answers will be treated in strict confidence
1.1 Which country you belong?
United Kingdom □
Libya □
1.2 What is your position in the company?
Owner/client □
Contractor □
Sub-Contractor □
Consultant □
Project Manager □
Engineer □
1.3 What type of construction projects you are involved in?
Small size □
Medium size □
Large size □
1.4 How many of your construction projects were time or cost overrun in the past?
Less than 10% □
10 to 30% □
30 to 50% □
50 to 70% □
Over 70% □
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1.5 Please rank causes of cost/time overrun
Scale (1 = least cause and 7 = major cause)
Lack of proper project management practices (see Q2.2 for practices)
Inadequate project planning tools
Owner-related factors
Contractor-related factors
Consultant-related factors
Project manager-related factors
External factors
PART 2: PROJECT MANAGEMENT PRACTICES
2.1 Do you agree that project management practices are important to avoid cost or time
overruns?
Yes □
No □
2.2 Which project management practices you are practicing during the construction process?
Please tick one answer
Project Management Practices Practicing Not Practicing
a) Procurement
b) Partnering
c) Risk Management
d) Value Management
e) Sustainable Construction
f) Benchmarking
g) Supply Chain Management
h) Lean Construction
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2.3 Please rank each benefit of applying project management practices in construction project
Scale (1 = least benefit and 9 = major benefit)
High profits
Quality output
High client and employee satisfaction
Improved safety
Minimised environmental effects
Continuous improvement
Enhanced performance
Prevent cost and time overruns
Effective monitoring and control
2.4 Do you agree that project management practices in Q2.2 are enough to achieve benefits
given in Q2.3?
Yes □
No □
2.5 Please rank factors that hinder your organisation to adopt modern project management
practices
SCALE0 1 2 3 4
NeutralNot
ImportantSomewhat Important
ImportantVery
Important
FACTORSSCALE
0 1 2 3 4
F1 Lack of top management commitment
F2 Lack of knowledge, experience, and skills
F3 Fear of change
F4 Conflict between construction parties
F5 Extreme pressure of project delivery time
F6 Changing client requirements
F7 Excessive bureaucracy
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F8 Poor governance
F9 Wrong person as project manager
F10 Changes in scope of the project
F11 Lack of communication between construction parties
F12 Economic factors
F13 Social and cultural factors
F14 Environmental factors
Other? (Please specify)
F15
F16
Thank you for providing your valuable opinion
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Appendix B: Frequency Tables
GENDER Frequency Percentage (%)UK Libya UK Libya
MaleFemale
Total
260
26
430
43
1000
100
1000
100
EXPERIENCE Frequency Percentage (%)UK Libya UK Libya
< 10 Years> 10 Years
Total
52126
83543
1981
100
18.681.4100
Q 1.1 – RESPONDENTS Frequency Percent (%)
UKLibyaTotal
264369
37.662.4100
Q1.2 - DESIGNATION Frequency Percentage (%)UK Libya UK Libya
Owner/clientContractor
Sub-contractorConsultant
Project ManagerEngineer
Total
576314
26
71211436
43
19.2326.9223.0811.543.85
15.38100
16.2827.9125.589.306.98
13.95100
Q1.3 – PROJECT TYPE Frequency Percentage (%)UK Libya UK Libya
Small sizeMedium size
Large sizeTotal
9107
26
10161743
34.6238.4626.92
100
23.2637.2139.53
100
Q1.4 – PROJECTS TIME/COST OVERRUN Frequency Percentage (%)UK Libya UK Libya
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Less than 10%10 to 30%30 to 50%50 to 70%Over 70%
Total
147221
26
033
112643
53.8526.927.697.693.85100
0.006.986.98
25.5860.47
100
Q1.5 CAUSES OF TIME/COST OVERRUNS(UK PERSPECTIVE)
Least Cause Major Cause
1 2 3 4 5 6 7
Contractor-related factors 0 2 3 4 3 5 9Inadequate project planning tools 2 2 2 2 4 7 7Consultant-related factors 2 2 3 2 6 7 4Project manager-related factors 4 3 5 5 3 3 3Lack of proper project management practices 5 5 4 5 2 3 2Owner-related factors 6 5 4 4 5 1 1External factors 7 7 5 4 3 0 0
Q1.5 CAUSES OF TIME/COST OVERRUNS(LIBYAN PERSPECTIVE)
Least Cause Major Cause
1 2 3 4 5 6 7
Lack of proper project management practices 1 2 4 6 7 11 12Inadequate project planning tools 2 4 5 6 6 8 12Contractor-related factors 3 3 5 7 5 10 10Owner-related factors 6 7 4 6 7 8 5Consultant-related factors 7 9 7 9 7 3 1Project manager-related factors 11 10 9 4 6 2 1External factors 13 8 9 5 5 1 2
Q. 2.1 IMPORTANCE OF PM PRACTICES Frequency Percentage (%)UK Libya UK Libya
YesNo
Total
251
26
63743
96.153.85100
13.9586.05
100
Q2.2 – PROJECT MANAGEMENT PRACTICES Frequency Percentage (%)UK Libya UK Libya
Procurement
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In useNot in use
PartneringIn use
Not in useTotal
Risk ManagementIn use
Not in useTotal
Value ManagementIn use
Not in useTotal
Sustainable ConstructionIn use
Not in useTotal
BenchmarkingIn use
Not in useTotal
Supply Chain ManagementIn use
Not in useTotal
Lean ConstructionIn use
Not in useTotal
251
26
131326
242
26
197
26
224
26
233
26
242
26
260
26
385
43
403
43
192443
63743
394
43
251843
403
43
376
43
96.153.85
100.00
50.0050.00
100.00
92.317.69
100.00
73.0826.92
100.00
84.6215.38
100.00
88.4611.54
100.00
92.317.69
100.00
100.000.00
100.00
88.3711.63
100.00
93.026.98
100.00
44.1955.81
100.00
13.9586.05
100.00
90.709.30
100.00
58.1441.86
100.00
93.026.98
100.00
86.0513.95
100.00
Q2.3 – BENEFITS OF PROJECT MANAGEMENT PRACTICES
(UK PERSPECTIVE)
Least Benefit Major Benefit
1 2 3 4 5 6 7 8 9
Prevent cost and time overruns 1 1 0 1 2 6 3 5 7Effective monitoring and control 0 1 1 3 1 3 5 7 5High client and employee satisfaction 0 1 1 2 5 5 3 5 4Quality output 1 2 2 4 5 1 5 4 2Minimised environmental effects 4 3 1 2 4 5 2 2 3Improved safety 2 4 3 4 3 3 4 1 2Continuous improvement 6 4 6 2 2 1 3 0 2High profits 4 5 4 6 4 1 0 1 1Enhanced performance 8 5 8 2 0 1 1 1 0
Q2.3 – BENEFITS OF PROJECT MANAGEMENT PRACTICES
(LIBYAN PERSPECTIVE)
Least Benefit Major Benefit
1 2 3 4 5 6 7 8 9
Prevent cost and time overruns 1 2 3 5 3 4 6 10 9High profits 3 1 3 4 7 3 5 7 10Quality output 2 4 5 3 9 3 7 6 4Minimised environmental effects 5 3 4 6 3 7 4 2 9Effective monitoring and control 4 5 7 7 2 3 6 4 5High client and employee satisfaction 6 3 7 3 5 7 3 6 3
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Continuous improvement 7 7 5 3 7 5 6 2 1Enhanced performance 7 8 5 7 3 4 5 3 1Improved safety 8 10 4 5 4 7 1 3 1
Q. 2.4 ADEQUACY OF PM PRACTICES Frequency Percentage (%)UK Libya UK Libya
YesNo
Total
251
26
34043
96.153.85100
6.9893.02
100
Q2.5 – FACTORS INFLUENCING PROJECT MANAGEMENT PRACTICES
(UK PERSPECTIVE)
Neu
tral
Not
Im
p
S. I
mp
Imp
.
V. I
mp
0 1 2 3 4
F5 Extreme pressure of project delivery time 1 1 3 4 17F10 Changes in scope of the project 0 1 2 11 12F12 Economic factors 0 0 5 9 12F14 Environmental factors 0 1 4 10 11F3 Fear of change 0 2 5 7 12F1 Lack of top management commitment 0 1 6 9 10F6 Changing client requirements 1 1 6 7 11F8 Poor governance 1 1 5 10 9F11 Lack of communication between construction parties 1 2 7 4 12F4 Conflict between construction parties 1 2 6 7 10F13 Social and cultural factors 1 2 4 12 7F2 Lack of knowledge, experience, and skills 1 0 10 7 8F7 Excessive bureaucracy 0 0 11 10 5F9 Wrong person as project manager 1 1 9 9 6
Q2.5 – FACTORS INFLUENCING PROJECT MANAGEMENT PRACTICES
(LIBYAN PERSPECTIVE)
Neu
tral
Not
Im
p
S. I
mp
Imp
.
V. I
mp
0 1 2 3 4
F10 Changes in scope of the project 2 2 5 6 28F2 Lack of knowledge, experience, and skills 1 2 3 16 21F3 Fear of change 1 1 6 17 18F1 Lack of top management commitment 1 1 9 12 20
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F7 Excessive bureaucracy 0 3 8 13 19F9 Wrong person as project manager 3 1 8 15 16F6 Changing client requirements 1 3 10 14 15F8 Poor governance 2 2 9 16 14F13 Social and cultural factors 2 4 10 11 16F4 Conflict between construction parties 2 1 15 11 14F12 Economic factors 0 1 18 15 9F11 Lack of communication between construction parties 2 4 8 19 10F5 Extreme pressure of project delivery time 1 2 15 16 9F14 Environmental factors 4 3 11 12 13
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Appendix C: Spearman’s Rank Correlation Calculation
Table B1 – Spearman’s Rank Correlation Matrix
Causes of time/cost overrunRanking
d d2Libya UKLack of proper project management practices 1 5 -4 16Inadequate project planning tools 2 2 0 0Contractor-related factors 3 1 2 4Owner-related factors 4 6 -2 4Consultant-related factors 5 3 2 4Project manager-related factors 6 4 2 4External factors 7 7 0 0
Total 0 Σd2 = 32
Formula:
Calculation:
A 6Σd2 6*32 = 192B n(n2 - 1) 7*(49-1) = 336C A / B 192/336 = 0.57
1 – C 1 – 0.57 = 0.43 (correlation)
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Table B2 – Spearman’s Rank Correlation Matrix
Benefits of Project Management PracticesRanking
d d2Libya UKPrevent cost and time overruns 1 1 0 0High profits 2 8 -6 36Quality output 3 4 -1 1Minimised environmental effects 4 5 -1 1Effective monitoring and control 5 2 3 9High client and employee satisfaction 6 3 3 9Continuous improvement 7 7 0 0Enhanced performance 8 9 -1 1Improved safety 9 6 3 9
Total 0 Σd2 = 66
Formula:
Calculation:
A 6Σd2 6*66 = 396B n(n2 - 1) 9*(81-1) = 720C A / B 396/720 = 0.55
1 – C 1 – 0.55 = 0.45 (correlation)
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Table B3 – Ranking comparison
ID Problematic FactorsRanking
d d2Libya UKF10 Changes in scope of the project 1 2 -1 1F2 Lack of knowledge, experience, and skills 2 12 -10 100F3 Fear of change 3 5 -2 4F1 Lack of top management commitment 4 6 -2 4F7 Excessive bureaucracy 5 13 -8 64F9 Wrong person as project manager 6 14 -8 64F6 Changing client requirements 7 7 0 0F8 Poor governance 8 8 0 0F13 Social and cultural factors 9 11 -2 4F4 Conflict between construction parties 10 10 0 0F12 Economic factors 11 3 8 64F11 Lack of communication b/w construction parties 12 9 3 9F5 Extreme pressure of project delivery time 13 1 12 144F14 Environmental factors 14 4 10 100
Total 0 Σd2 = 558
Formula:
Calculation:
A 6Σd2 6*558 = 3348B n(n2 - 1) 14*(196-1) = 2730C A / B 3336/2730 = 1.23
1 – C 1 – 1.22 = –0.23 (correlation)
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