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MEASURING PROJECT SUCCESS IN MALAYSIAN CONSTRUCTION INDUSTRY Jaimey Attau1 and Assoc. Professor Dr.Mohamad Ibrahim Mohamad2 1

Civil Eng student, Faculty of Civil Engineering, Universiti Teknologi Malaysia 2 Phd, Faculty of Civil Engineering, Universiti Teknologi Malaysia

ABSTRACT: The concept of project success has remained debatable in the construction industry because of varying perception of each project participant. Traditionally, construction project completed in a timely manner within an established budget and meeting required quality have been considered successful project. However, Malaysian construction industry has developed in size, technology and complexity, while client and end-user is more demanding and knowledgeable. Therefore this study has been undertaken with the aim to determine a contemporary approach in identifying project success from contractor perspective. The objective of this study includes studying the traditional concept of defining success factor for construction project; to determine the contemporary concept of defining the project success and lastly to evaluate the contractor perception on defining project success. The methods used in this study were analytical literature and questionnaires which were distributed to selected respondents. Based on the available literature, a total of fifty four success factors was identified and group into nine success criteria categories which is reflection to the current Malaysian scenario. These factors were assembled into a questionnaire survey that was distributed to selected contractor. The results of this study indicated that the predominant factor to define project success from contractor perspective are: meets project stakeholders needs and expectation, overall completion within the project schedule, no accidents or fatalities during construction phase, overall completion within the project budget, meets client satisfaction on product, meet technical specification of quality correspond to cost, high profit margin, client capability to brief on the project scope and objectives, and generate positive reputation/branding.

Key words: Project Success, Success Criteria, Success Factors, Malaysia 1.

INTRODUCTION

The construction industry is dynamic in nature. This industry is become more dynamic due to increasing uncertainties in technology, budget, and development process. Construction project involves numerous parties, processes, different stages, and phases of work, with changing participants, processes and environment. The concept of project success meant to improve the present situation. However, this concept has remained unclearly defined in the minds of the construction project participants’. Project success means different things to different people depending on the specific point of view. Many researchers have been able to identified the factors of projects success, but there is no general agreement appertain to common factors for all projects. The citeria of project success are enriched as time goes by. Therefore, comprehensive review on contemporary method is vital for measuring construction success in Malaysia.

2.

PROBLEM STATEMENT

Traditionally, the success of a project is measured through the fulfillment of time, cost and quality objectives. However, the definition of project success over the years has come to include other more comprehensive aspects. Baker et al (1983) define project success by including the elements of achieving the desired technical specification as well as the accomplishment of the intended objectives. The construction industries have developed in size, complexity and high demand by client and end-user, causing project construction becoming more difficult for the project objective of time, cost and quality to be achieved. Other measures such as safety, functionality and satisfaction of end user, are the predominant aspect in the current trend of Malaysian construction industry. Therefore, a comprehensive review of contemporary method is essential to defining project success factors that contribute towards achieving project success in Malaysia. 3.

AIM AND OBJECTIVES

The aim of this study is to determine factors that can contribute to the successful of any project. In order to achieve this, several objectives are summarized as follows: i. To study the traditional concept of defining success factor for construction project. ii. To determine the contemporary concept of defining the project success. iii. To evaluate the contractor perception on defining project success. 4.

SCOPE AND LIMITATION OF THE STUDY

This study was conducted to seek outlined objectives based on responses from contractors, which are currently working on several projects in Kuala Lumpur and Selangor. As such, this study is limited and only focused in Klang Valley. In order to meet the said objective, both traditional and contemporary method in defining project success will be included. 5.

SIGNIFICANT OF THE STUDY

In construction industry, measuring the performance in term of success or failure is a complex process. Traditionally, time, cost and quality are defined as the basic criteria of measuring success. However, different ideas on measuring project success have been developed in the last few decades. Therefore, it is essential to study the contemporary concept of defining project success on top of the traditional method. This study will further enhance contractors understanding of running a successful project and thus set a foundation for them to improve project performances by providing helpful information that is necessary for the achievement of a successful project. 6.

METHODOLOGY

Table 6.1 shows the summary of primary aim, objectives and methodologies adopted in this study.

Table 6.1: summary of primary aim, objectives and methodologies Primary aim: To determine factors that can contribute to the successful of any project

No

i

ii

iii

Objectives To study the traditional concept of defining success factor for construction project. To determine the contemporary concept of defining the project success. To evaluate the contractor perception on defining project success.

Task

Methodologies

• Review on success definition •Review on project success component •Review on traditional concept to define project success •Review of contemporary concept to define project success •Review on stakeholder perception on defining project success •Evaluate the level of agreement on the factors that influencing the successful of a project from contractor perspective

• Literature search •Interview with expert panel • Literature search •Interview with expert panel •Interview with expert panel •Questionnaire Survey

Data Analysis and Dissemination

6.1 Literature search Literature search has been carried out through variety information sources, which included library references books, journals, articles and researchers papers and report from internet. 6.2 Interview with Expert Panels Interview with the selected project team player were conducted to gain in-depth understanding of the subject matter. 6.3 Questaionnaire Survey In this study, there were 48 questionnaire being distributed to selected contractor which are currently working on several projects in Klang Valley, with various level of experience, classes, working nature and responsibilities as their involved in managing construction project. There were all together 31 responses and responses rate 65% in feedback. The correspondences of the questionnaire are 3 responses from class F, 4 responses from class B and 24 responses from class A. 6.4 Analysis Method The measurement tools in the survey provide quantitative indication of the qulitative judgements. The rating scale of the questionnaire are 1=least significance, 2=quite significance, 3=moderately significance, 4=significant, 5=very significance. The main approach used to analyse the data was using Relative Importance Index and Mean Index.

Relative Importance Index (RII) computed as:

RII = ΣWi Xi ΣXi Where: RII Wi Xi

= = =

Relative Importance Index; the weight assigned to ith response ( 1,2,3,4,5 respectively ); frequency of the ith response given as percentage of the total responses for each factors.

Mean Index computed as:

Mean Index = Σ μ X n N Where: μ = Weighting given to each factor by respondents (1 to 5) n = Frequency of the respondents. N = Total number of respondents. Rating scale: (Majid & McCaffer, 1997) 1 = Least Significance 2 = Quite Significance 3 = Moderately Significance 4 = Significance 5 = Very Significance

7.

(1.00 ≤ Mean Index <1.50) (1.50 ≤ Mean Index <2.50) (2.50 ≤Mean Index <3.50) (3.50 ≤ Mean Index < 4.50) (4.50≤ Mean Index ≤ 5.00)

RESULT AND DISCUSSIONS

Finding 1: Traditional method to define project success Traditionally, the success of a project is measured on the basis of time, cost and quality. Nearly every project management article mentions these three criteria and point out the importance of them in a construction project. Project success will be confered if it is completed within the budgeted cost, implemented on time and to quality parameters requested. Almost every researcher mentioned these criteria in their findings as shown in Table 7.1 and further supported by all the interviewee that traditionally, the success of project is measured based on time, cost, and quality as shown in Table 7.2

Finding 2: Contemporary method to define project success Through extensive literature search and interview conducted with expert panels, new template of contemporary method to define project success has been developed. This template consists of nine (9) success criteria as shown in Figure 7.1 Time Quality

Cost

Scoping

Project Success

Safety & Health

Project Functionality

Financial Condition Satisfaction & Expectation

Sales & Marketing

Figure 7.1: Project Success Criteria The new template of contemporary method to define project success was developed by reviewing the project evaluation criteria by previous researchers as shown in Table 7.1 and interview with expert panels in Table 7.2. Finding 3: Contractor perception on defining project success. Contractor perception of defining project success is identified by analysing the level of agreement on the factors that influencing the successful of a project. Figure7.2 shows the ranking of success factor from contractor point of view according to Relative Importance Index in ascending order which is dominating for each category of success criteria.

Figure 7.2: Ranking of Success Factor

8.

CONCLUSSION

Aim and objectives have been achieved and the following is the conclusion of each objective of this study Objective 1: To study the traditional concept of defining success factor for construction project. The first objective of this study has been achieved by successful literature review and the interview conducted with the expert panel in the construction industry. Traditionally, time, cost and quality are defined as the basic criteria of measuring project success. Project success will accorded if it is completed within the budgeted cost, completed on time or ahead of the project schedule and achieved the required standard of quality. Objective 2 : To determine the contemporary concept of defining the project success The second objective of this study has been achieved by successful literature review and the interview conducted with the expert panel in the construction industry. New template of contemporary method to define project success has been developed. This template consists of nine (9) success criteria which are: Time, Cost, Quality, Scoping, Safety and Health, Project Functionality, Satisfaction and Expectation, Financial Condition and Sales and marketing. Objective 3 : To evaluate the contractor perception on defining project success. The third objective of this study has been achieved by successful analysing the level of agreement on the factors that influencing the successful of a project through the result gathered from questionnaire survey distributed to the selected contractor. The survey result revealed that the predominant factor to define project success from contractor perspective are: meets project stakeholders needs and expectation, overall completion within the project schedule, no accidents or fatalities during construction phase, overall completion within the project budget, meets client satisfaction on product, meet technical specification of quality correspond to cost, high profit margin,client capability to brief on the project scope and objectives, and generate positive reputation/branding.

9.

RECOMMENDATION

Another study can be done for a specific type of construction projects, such as utility projects, housing projects, highway projects, etc. Detail study can be done to determine the success factors that contribute to the successful of the specific project in various location of project in Malaysia.

REFERENCES

1.

Atkinson, R., (1999), “Project Management: Cost, time and Quality, Two Best Guesses and a Phenomenon, Its Time to Accept Other Success Criteria”, International Journal of Project Management, 17(6), 337-342.

2.

Baker, B.N., Murphy, D.C. and Fisher, D. (1983), Factors Affecting Project Success: Project Management Handbook. New York: Van Nostrand Reinhold

3..

Chan, A.P.P., Chan, A.P.L., (2004), “Key performance indicators for measuring construction success”, Benchmarking: an International Journal, 11, 203-221.

4.

Sanvido, V., Grobler, PK., Guvenis, M., Coyle, M., (1992), “ Critical success factors for constructions project”, Journal Construction Management,118(1),94-111.

5.

Omar Osman, (2006), Pengurusan Pembinaan: Konsep, Strategi dan Aplikasi, Penerbitan Universiti Sains Malaysia.

Table 7.1: summary table for project evaluation criteria by previous researchers

x

x

x

x

Liu (1999)

x

x

x

x

x

x

x

x

x

Gray et al. (1990)

x

x

x

Munns (1995)

x

x

x

x

Wateridge (1995)

x

x

x

x

Munns & Bjeirmi (1996)

x

x

x

Belassi & Tukel(1996))

x

x

x

Belout (1998)

x

x

x

Jang & Lee (1998)

x

x

Atkinson (1999)

x

x

x

x

x

x

x

x

x

Lim & Mohamed (1999)

x

x

x

x

x

x

x

x

x

Brown & Adams (2000)

x

x

x

Gardiner & Stewart (2000)

x

x

x

x

x

x

x

Environmental Friendliness

x

Kometa et al. (1995

Effectiveness

Safety

x

Commercial Profitable

Meet Technical Specification

Functionality

User Expectation

No Legal Claim

Reduce Modification

Project Management Members

Users

Contractors

Consultants

Clients

Time

Cost Eng. Const. And Arch. Manag. International Journal of Project Management

Journal of Const. Procure.

Quality

Authors

Satisfaction

x

x

x

Dissanayaka &Kumaraswamy (1999) Walker (1996) Songer et al. (1996)

x x

x

x

x

x

x

x

x

X

x

x

x

x

x

x

x

Note: Part of the summary table for project evaluation criteria by previous researchers.

Table 7.2: Content analysis interview session with expert panels Respondent 1 (Client)

Question Traditional Concept of Success Factors

Q1

Respondent 3 (Contractor) Traditionally, contractor defined a project is successful based on 3 factors; time, cost and quality. The project to be completed within the time given, within the project budget and to achieved required standard/quality

Respondent 4 (Contractor)

Respondent 5 (Consultant)

Traditionally. Contractor defined a project based on 3, major factors; to complete the job on time or ahead of time and it is within the project budget and to meet the required standard of quality

A project is considered successful if it is built within budget, time, and to specified standard

Yes

Not so, should consider other factors

Not so, because there are other factors that determine a project as being successful.

Not necessarily

1) Satisfied client 2) Implementation Of safety and Health 3) Aesthetic Value 4) Marketing

1) Safety and Health 2) Profitable 3) Client satisfied 4) Cost 5) Scope

Design of good quality and finishes. It should also be environmentally friendly at construction site

1) Environmental Acceptability 2) Sustainable 3) No Accidents or fatalities 4) Scope of work

Yes

Yes

Yes

Yes

Client: 1) Quality 2) Cost 3) Time Consultant: 1) Quality 2) Satisfied client 3) Minimum construction problem Contractor: 1) Time 2) Cost 3) Profitable 4) Safety and Health

Client: 1) On time 2) Quality 3) On budget Consultant: 1) Satisfied client 2) Minimum construction problem 3) Profitable Contractor: 1) Profitable 2) Safety and Health 3) Reputation

Client: 1) Profitable 2) Reputable 3) Quality design Consultant: 1) Recognized 2) Good concept design 3) award wining 4) International recognition Contractor: 1) Budget 2) Recognition

Client: 1) Within budget 2) Within time 3) Sustainable design Consultant: 1) Sustainable 2) Good Design 3) Environmental sound Contractor: 1) Profitable 2) No accidents or fatalities

Defining

Based on your experience, traditionally how do we defined (or factors that contribute) a project as being success?

Do you think this concept of defining successful of a Q2 project still relevant for construction project nowadays? Contemporary Concept of Defining Success Factor If you think otherwise for question (2) then what are the factors that should be Q3 considered as factors that determine the successful of a construction project? Does the meaning of successful project differ from Q4 different stakeholder perspective today? Stakeholder Expectation

Q5

Respondent 2 (Client)

Then what will be the success factor for client, consultant and contractor?

Successful project always measured based on 3 main categories; time, cost and quality. It has to be completed within the budgeted cost, at the agreed time frame and with a reasonable quality corresponds to its cost. To some extend these 3 factors are still relevant, however purchaser/client nowadays is more demanding and knowledgeable, thus need other factors as well. 1) Satisfied Client 2) Reputation 3) High Profit 4) minimum modification during construction

Definitely Client: 1) Time 2) Cost 3)Quality 4) Marketing Consultant: 1) Quality 2) Cost 3) Compliance Contractor: 1) Time 2) Cost 3) Quality 4) Profit

Traditionally, a project considered successful when completed within time frame given, within budgeted cost and fulfil scope

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