Topics in Safety, Risk, Reliability, and Quality

Volume 23

Series Editor

Adrian V. Gheorghe

For further volumes:http://www.springer.com/series/6653

Kumar Neeraj Jha

Determinantsof Construction ProjectSuccess in India

123

Kumar Neeraj JhaDepartment of Civil EngineeringIndian Institute of Technology DelhiNew DelhiIndia

ISSN 1566-0443ISBN 978-94-007-6255-8 ISBN 978-94-007-6256-5 (eBook)DOI 10.1007/978-94-007-6256-5Springer Dordrecht Heidelberg New York London

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Preface

It gives me immense pleasure in presenting this book to you. Construction industryin most of the countries is infamous for schedule and cost overrun, poor quality,large number of disputes, and many other ills. This is truer in case of developingcountries such as India. Not many researches have been conducted to understandthe reasons behind poor performances in a scientific manner. Even the rare suc-cesses achieved in some of the projects implementation are not well documented.

This book has been a result of research conducted at the IIT Delhi as part of myPh.D. work and my subsequent supervisions of Ph.D.s and Masters Dissertations.The research systematically attempts to find out the critical success and failureattributes/factors across the four performance criteria: schedule, cost, quality, anddispute. It also shows which success factor(s) is (are) more relevant at a givenproject performance level. The book also presents the success traits for the successof a project. It reinforces the importance of commitment, coordination, andcompetence (3Cs) in achieving the desired project performance. The readers willalso find ways in which a project’s performance can be predicted. The need of aproject coordinator is felt increasingly in large modern projects. The book alsopresents the required traits of a project coordinator.

The research is based on an empirical setting and sound research methodology.It utilizes various appropriate techniques, such as factor analysis, multinomiallogistic regression, structural equation modeling, and neural network suitable forachieving a particular objective. Further most of the materials presented in thebook are peer reviewed.

Construction industry contributes a lot in a country’s GDP and is a primeemployment generator. Growth in construction propels growth in many otherindustries. It is imperative to achieve good performance in this industry byimplementing projects successfully. The book is an attempt to understand theperformance enablers and retarders.

v

Each chapter begins with an abstract and is then organized into well-definedsections and subsections. Each chapter is summarized and concluded and at theend the relevant references are provided. Summary of relevant literature is alsocited in each chapter. The book will be useful to different stakeholders of con-struction. It would also prove to be helpful to research students of differentstreams, I am eager to receive the comments from the readers of the book.

Kumar Neeraj Jha

vi Preface

Acknowledgments

A book of such nature would not have been possible without the support andassistance of a number of people. I would like to thank my supervisor Prof. K. C.Iyer and my students in particular Dr. S. Z. S. Tabish and Mr. C. T. Chockalingam.I am thankful to the publishers mentioned below for granting me permission toproduce from my earlier works published by them.

S.No Title Journal Name Publisher

Volume,Issue, andYear

(1) Critical Factors Affecting SchedulePerformance: Evidence from IndianConstruction Projects

Journal ofConstructionEngineering andManagement

AmericanSociety ofCivilEngineers

132(8),2006

(2) Success Traits for a ConstructionProject

Journal ofConstructionEngineering andManagement

AmericanSociety ofCivilEngineers

138(10),2012

(3) Commitment, coordination,competence and the iron triangle

International Journalof ProjectManagement

Elsevier 25(5),2007

(4) Critical determinants of projectcoordination

International Journalof ProjectManagement

Elsevier 24(4),2006

(5) What attributes should a projectcoordinator possess?

ConstructionManagement &Economics

Taylor &Francis

24(9),2006

(6) Prediction of schedule performance ofIndian construction projects using anartificial neural network

ConstructionManagement &Economics

Taylor &Francis

29(9),2011

(continued)

vii

I am thankful to Nathalie Jacobs and Cynthia Feenstra of Springer in guidingand supporting me throughout the review and publication process. I am alsothankful to the typesetting team for their hard work. I am thankful to my researchscholars Dilip, Amit, and Manish for the help extended in proof reading process.My sincere thanks to Prof. Anupam Dewan for all the help extended during thepublication process. I am thankful to my colleagues at the Department of CivilEngineering—Indian Institute of Technology Delhi.

I am thankful to my friend and philosopher Prof. Lalit Manral—AssistantProfessor of Strategic Management at University of Central Oklahoma forinspiring me to take up the academic profession. I am always motivated by hismaverick approach in different walks of life. No words can suitably express mygratitude toward my parents for what they have done all through these years. Lastbut not the least; I am thankful to Arti (wife), Srijan (elder son) and Sajal (youngerson) for their continued support.

Kumar Neeraj Jha

(continued)

S.No

Title Journal Name Publisher Volume,Issue, andYear

(7) Ranking and classification ofconstruction coordination activitiesin Indian projects

ConstructionManagement &Economics

Taylor &Francis

25(4),2007

(8) Critical Factors Affecting QualityPerformance in Construction Projects

Total QualityManagement &Business Excellence

Taylor &Francis

17(9),2006

viii Acknowledgments

Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 A Construction Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Phases of a Construction Project . . . . . . . . . . . . . . . . . . . . . . 21.3 Understanding Project Success. . . . . . . . . . . . . . . . . . . . . . . . 31.4 Criteria for Project Performance Evaluation . . . . . . . . . . . . . . 51.5 Need for the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.6 Research Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.7 Organization of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . 10References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2 Research Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.2 Need for Questionnaire Survey . . . . . . . . . . . . . . . . . . . . . . . 152.3 Development of First Stage Questionnaire . . . . . . . . . . . . . . . 15

2.3.1 Respondent’s Personal Details and ProfessionalExperience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.3.2 Project Details and Traits of a Project Coordinator . . . 172.3.3 Relative Importance of Various Project Stages . . . . . . 212.3.4 Relative Importance of Project Performance

Evaluation Parameters . . . . . . . . . . . . . . . . . . . . . . . 212.3.5 Project Performance Attributes . . . . . . . . . . . . . . . . . 222.3.6 Coordination Activities . . . . . . . . . . . . . . . . . . . . . . . 242.3.7 Parameters Influencing Coordination . . . . . . . . . . . . . 26

2.4 Development of Second Stage Questionnaire. . . . . . . . . . . . . . 292.4.1 Personal and Project Details . . . . . . . . . . . . . . . . . . . 302.4.2 Project Performance Factors . . . . . . . . . . . . . . . . . . . 312.4.3 Important Coordination Activities . . . . . . . . . . . . . . . 32

2.5 Responses Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342.5.1 First Stage Questionnaire . . . . . . . . . . . . . . . . . . . . . 342.5.2 Second Stage Questionnaire . . . . . . . . . . . . . . . . . . . 35

2.6 Analysis Techniques. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372.6.1 Univariate Analyses . . . . . . . . . . . . . . . . . . . . . . . . . 372.6.2 Multivariate Analyses . . . . . . . . . . . . . . . . . . . . . . . . 38

ix

2.6.3 Artificial Neural Network . . . . . . . . . . . . . . . . . . . . . 392.6.4 Structural Equation Modeling . . . . . . . . . . . . . . . . . . 40

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

3 Major Attributes of Project Performance . . . . . . . . . . . . . . . . . . . 433.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433.2 Success Attributes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443.3 Failure Attributes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483.4 Identification of Relative Importance of Project

Performance Attributes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493.5 Intrinsic Characteristics of Success and Failure Attributes. . . . . 563.6 Success Factors: Schedule Criterion . . . . . . . . . . . . . . . . . . . . 57

3.6.1 Project Manager’s Competence . . . . . . . . . . . . . . . . . 573.6.2 Top Management Support . . . . . . . . . . . . . . . . . . . . . 593.6.3 Monitoring, Feedback, and Coordination. . . . . . . . . . . 593.6.4 Favorable Working Condition . . . . . . . . . . . . . . . . . . 603.6.5 Commitment of All Project Participants . . . . . . . . . . . 603.6.6 Owners Competence. . . . . . . . . . . . . . . . . . . . . . . . . 60

3.7 Failure Factors: Schedule Criterion . . . . . . . . . . . . . . . . . . . . 603.7.1 Conflict Among Project Participants. . . . . . . . . . . . . . 603.7.2 Project Manager’s Ignorance . . . . . . . . . . . . . . . . . . . 613.7.3 Hostile Socio-Economic Environment. . . . . . . . . . . . . 623.7.4 Owner’s Incompetence . . . . . . . . . . . . . . . . . . . . . . . 623.7.5 Indecisiveness of Project Participants . . . . . . . . . . . . . 623.7.6 Harsh Climatic Condition at Site . . . . . . . . . . . . . . . . 623.7.7 Project Specific Factor and Aggressive

Competition at Tender Stage . . . . . . . . . . . . . . . . . . . 633.8 Success Factors: Cost Criterion . . . . . . . . . . . . . . . . . . . . . . . 63

3.8.1 Project Manager’s Competence . . . . . . . . . . . . . . . . . 633.8.2 Top Management Support . . . . . . . . . . . . . . . . . . . . . 653.8.3 Project Manager’s Coordinating

and Leadership Skill. . . . . . . . . . . . . . . . . . . . . . . . . 653.8.4 Monitoring and Feedback . . . . . . . . . . . . . . . . . . . . . 663.8.5 Coordination Between Project Participants . . . . . . . . . 663.8.6 Commitment of Project Participants . . . . . . . . . . . . . . 663.8.7 Owner’s Competence and Favorable

Climatic Condition . . . . . . . . . . . . . . . . . . . . . . . . . . 673.9 Failure Factors: Cost Criterion. . . . . . . . . . . . . . . . . . . . . . . . 67

3.9.1 Conflict Among Project Participants. . . . . . . . . . . . . . 673.9.2 Ignorance and Lack of Knowledge

of Project Manager. . . . . . . . . . . . . . . . . . . . . . . . . . 673.9.3 Project Specific Factors . . . . . . . . . . . . . . . . . . . . . . 693.9.4 Hostile Socio Economic and Climatic Condition . . . . . 693.9.5 Reluctance in Timely Decision . . . . . . . . . . . . . . . . . 69

x Contents

3.9.6 Aggressive Competition at Tender Stage. . . . . . . . . . . 703.9.7 Short Bid Preparation Time. . . . . . . . . . . . . . . . . . . . 70

3.10 Success Factors: Quality Criterion . . . . . . . . . . . . . . . . . . . . . 703.10.1 Project Manager’s Competence . . . . . . . . . . . . . . . . . 703.10.2 Top Management Support . . . . . . . . . . . . . . . . . . . . . 723.10.3 Interaction Between Project Participants . . . . . . . . . . . 723.10.4 Owners Competence. . . . . . . . . . . . . . . . . . . . . . . . . 733.10.5 Monitoring and Feedback . . . . . . . . . . . . . . . . . . . . . 73

3.11 Failure Factors: Quality Criterion. . . . . . . . . . . . . . . . . . . . . . 733.11.1 Conflict Among Project Participants. . . . . . . . . . . . . . 743.11.2 Hostile Socio Economic and Climatic Condition . . . . . 753.11.3 Ignorance and Lack of Knowledge. . . . . . . . . . . . . . . 753.11.4 Faulty Project Conceptualization . . . . . . . . . . . . . . . . 753.11.5 Project Specific Factors . . . . . . . . . . . . . . . . . . . . . . 763.11.6 Aggressive Competition at Tender Stage. . . . . . . . . . . 76

3.12 Success Factors: No-Dispute Criterion . . . . . . . . . . . . . . . . . . 763.12.1 Project Manager’s Competence and Top

Management Support . . . . . . . . . . . . . . . . . . . . . . . . 763.12.2 Owner’s Competence . . . . . . . . . . . . . . . . . . . . . . . . 77

3.13 Failure Factors: No-Dispute Criterion . . . . . . . . . . . . . . . . . . . 773.14 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 82References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

4 Critical Success Factors for Projects. . . . . . . . . . . . . . . . . . . . . . . 854.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 854.2 Interpretation of Multinomial Logistic Regression Models . . . . 864.3 Schedule Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

4.3.1 Analysis of Responses to Success Factors . . . . . . . . . . 884.3.2 Analysis of Responses to Failure Factors . . . . . . . . . . 90

4.4 Cost Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 914.4.1 Analysis of Responses to Success Factors . . . . . . . . . . 914.4.2 Analysis of Responses to Failure Factors . . . . . . . . . . 92

4.5 Quality Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944.5.1 Analysis of Responses to Success Factors . . . . . . . . . . 944.5.2 Analysis of Responses to Failure Factors . . . . . . . . . . 95

4.6 No-Dispute Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 964.6.1 Analysis of Responses to Success Factors . . . . . . . . . . 964.6.2 Analysis of Responses to Failure Factors . . . . . . . . . . 97

4.7 Validation of Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1004.8 Conclusions From Case Studies . . . . . . . . . . . . . . . . . . . . . . . 1024.9 Conclusions from Structured Interviews . . . . . . . . . . . . . . . . . 1134.10 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 115References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Contents xi

5 Project Performance Prediction . . . . . . . . . . . . . . . . . . . . . . . . . . 1195.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1195.2 Performance Prediction Models . . . . . . . . . . . . . . . . . . . . . . . 1205.3 Research Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

5.3.1 Data Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . 1225.3.2 Identification of Predictor Variables . . . . . . . . . . . . . . 1235.3.3 Prediction Model . . . . . . . . . . . . . . . . . . . . . . . . . . . 1235.3.4 Network Architecture . . . . . . . . . . . . . . . . . . . . . . . . 1235.3.5 Training Algorithm . . . . . . . . . . . . . . . . . . . . . . . . . 1245.3.6 Configuration of ANN . . . . . . . . . . . . . . . . . . . . . . . 1245.3.7 Validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

5.4 Schedule, Cost, Quality, and Dispute Performance Predictionfor Construction Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1255.4.1 Data Preparation-Identification of Outliers . . . . . . . . . 1255.4.2 Identification of Predictor Variables-Correlation

Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1285.4.3 Performance Prediction Models . . . . . . . . . . . . . . . . . 130

5.5 User Interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1385.6 Discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

5.6.1 Project Manager’s Competence . . . . . . . . . . . . . . . . . 1415.6.2 Commitment of Project Participants . . . . . . . . . . . . . . 1415.6.3 Monitoring and Feedback by Project Participants. . . . . 1425.6.4 Owner’s Competence . . . . . . . . . . . . . . . . . . . . . . . . 1425.6.5 Coordination Between Project Participants . . . . . . . . . 1425.6.6 Interaction Between Project Participants . . . . . . . . . . . 1435.6.7 Availability of Trained Resources . . . . . . . . . . . . . . . 1435.6.8 Favorable Working Conditions and Regular

Budget Update. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1435.7 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 144References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

6 Success Traits for a Construction Project . . . . . . . . . . . . . . . . . . . 1476.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1476.2 Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1486.3 Research Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

6.3.1 Assessment of Reliability . . . . . . . . . . . . . . . . . . . . . 1496.3.2 Exploratory Factor Analysis . . . . . . . . . . . . . . . . . . . 1506.3.3 Confirmatory Factor Analysis . . . . . . . . . . . . . . . . . . 1516.3.4 Conceptual Model and Fit Indices

of the Structural Model. . . . . . . . . . . . . . . . . . . . . . . 1516.4 Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

6.4.1 Content Validity . . . . . . . . . . . . . . . . . . . . . . . . . . . 1526.4.2 Construct Validity . . . . . . . . . . . . . . . . . . . . . . . . . . 1536.4.3 Conceptual Model and Hypothesis . . . . . . . . . . . . . . . 155

xii Contents

6.5 Discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1576.6 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 159References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

7 Project Coordination for Success . . . . . . . . . . . . . . . . . . . . . . . . . 1637.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1637.2 Coordination: A Key Attribute Recognized . . . . . . . . . . . . . . . 1647.3 Coordination Activities in a Construction Project. . . . . . . . . . . 1667.4 Relative Importance of Project Coordination Activities. . . . . . . 1677.5 Differences in Perception on Various

Coordinating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1747.5.1 Schedule Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . 1747.5.2 Cost Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1767.5.3 Quality Criterion . . . . . . . . . . . . . . . . . . . . . . . . . . . 1777.5.4 No-Dispute Criterion . . . . . . . . . . . . . . . . . . . . . . . . 1787.5.5 Priority of Project Performance Criteria . . . . . . . . . . . 179

7.6 Identification of Important Coordination Activitiesfor Overall Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

7.7 Evaluation of Criticality of Coordination Activities . . . . . . . . . 1837.8 Assessment of Probabilities of Coordination Ratings . . . . . . . . 1857.9 Taxonomy of Coordination Activities . . . . . . . . . . . . . . . . . . . 187

7.9.1 Factor_1 Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 1877.9.2 Factor_2 Resource Handling . . . . . . . . . . . . . . . . . . . 1897.9.3 Factor_3 Contract Implementation . . . . . . . . . . . . . . . 1897.9.4 Factor_4 Team Building . . . . . . . . . . . . . . . . . . . . . . 189

7.10 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 191References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

8 Other Issues in Project Coordination and Traitsof a Project Coordinator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1938.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1938.2 Identification of Key Elements Affecting Coordination. . . . . . . 1948.3 Review of Traits of a Project Manager . . . . . . . . . . . . . . . . . . 1958.4 Important Traits of a Project Coordinator . . . . . . . . . . . . . . . . 1998.5 Dominant Traits of Coordinators in Successful

and Failure Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2028.6 Major Trait/Skill Category . . . . . . . . . . . . . . . . . . . . . . . . . . 206

8.6.1 Team Building Skill . . . . . . . . . . . . . . . . . . . . . . . . . 2068.6.2 Contract Implementation Skill . . . . . . . . . . . . . . . . . . 2088.6.3 Project Organization Skill . . . . . . . . . . . . . . . . . . . . . 208

8.7 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 209References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209

Contents xiii

9 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2119.1 Summary of Work Done. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2119.2 Identification of Critical Factors Responsible for Success

and Failure of Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2139.3 Evaluation of Relative Impact of Success and Failure

Factors on Performance of Project . . . . . . . . . . . . . . . . . . . . . 2139.4 Project Performance Prediction . . . . . . . . . . . . . . . . . . . . . . . 2159.5 Success Traits for a Construction Project . . . . . . . . . . . . . . . . 2169.6 Evaluation of Impact of Coordination and Coordination

Related Activities on Success of Projects . . . . . . . . . . . . . . . . 2169.7 Project Coordination for Success . . . . . . . . . . . . . . . . . . . . . . 2189.8 Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2199.9 Suggestions for Further Studies . . . . . . . . . . . . . . . . . . . . . . . 219Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

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