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Title: Investigating the role of project management practices in Libya compared to the UK to avoid construction time/cost overruns
Dr. Saeed
Table of Contents
ACKNOWLEDGEMENT ............................................................................................................................. 6 ABSTRACT................................................................................................................................................ 7
Chapter 1: Introduction
1.1 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
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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: Discussion
5.1 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
List of Figures
Figure 2.1: Theoretical framework of the study................................................................... Figure 2.2: The Project Life Cycle.......................................................................................... Figure 2.3: The Construction Process................................................................................... Figure 2.4: Descriptive Model of Mohieldin......................................................................... Figure 2.5: Features of Partnering........................................................................................ Figure 2.6: Risk Management Process.................................................................................. Figure 2.7: Risk Matrix.......................................................................................................... Figure 2.8: The Value Management Process......................................................................... 12 16 17 18 21 22 23 24 3|Page
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Figure 2.9: Benchmarking process........................................................................................ Figure 2.10: Supply Chain Cube............................................................................................ Figure 3.1: Research Onion of the Dissertation.................................................................... Figure 3.2: Triangulation research approach........................................................................ Figure 3.3: Research process................................................................................................ Figure 4.1 Survey respondents........................................................................................... Figure 4.2 UK Professionals................................................................................................ Figure 4.3 Libyan Professionals.......................................................................................... Figure 4.4: Types of construction projects (UK Respondents).............................................. Figure 4.5: Types of construction projects (Libyan Respondents)........................................ Figure 4.6: Projects cost/time overrun................................................................................. Figure 4.7: Importance of PM practices (UK Respondents).................................................. Figure 4.8: Importance of PM practices (Libyan Respondents)............................................ Figure 4.9: Project management practices in UK and Libya.................................................. Figure 4.10: Adequacy of PM practices (UK respondents)................................................... Figure 4.11: Adequacy of PM practices (Libyan respondents)..............................................
List of Tables
Table 3.1: Positivist vs. Interpretivist.................................................................................... Table 3.2: Ranking criteria.................................................................................................... Table 4.1 Respondents demographics.............................................................................. Table 4.2 Reliability analysis.............................................................................................. Table 4.3 Causes of time/cost overrun (UK Perspective)................................................... Table 4.4 Causes of time/cost overrun (Libyan Perspective)............................................. Table 4.5 Ranking comparison among causes................................................................... Table 4.6 Benefits of PM Practices (UK Responses)........................................................... Table 4.7 Benefits of PM Practices (Libya Responses)....................................................... 35 41 47 48 50 51 51 54 54 4|Page
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Table 4.8 Ranking comparison benefits............................................................................. Table 4.9 Ranking of problematic issues (UK perspective)................................................ Table 4.10 Ranking of problematic issues (Libya perspective)........................................... Table 4.11 Ranking comparison issues...............................................................................
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ACKNOWLEDGMENT
Acknowledgement
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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ABSTRACT
Abstract
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.
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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?
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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 projects 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, researchers 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.
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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 peoples 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 worlds biggest water projects. The public sector in Libya played a central role in developing countrys 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.
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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.
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 projects 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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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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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.
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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 clients 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 clients 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 projects underlying objectives. Figure 2.5 shows three essential features of partnering described by Bennett and Jayes (1995).
Figure 2.5: Features of Partnering
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.
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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
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
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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2.5.6 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
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, Alarcn 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.
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Source: Department of the Environment, Transport and the Regions (2000, p. 12)
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as structural defects, intrusion damps, detachment, defect related to water, and cracks in Libyan buildings. On the other hand, Egans (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.
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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 clients 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.
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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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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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construction parties can adopt PM practices currently undertaken in the UK construction industry.
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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
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.
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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.
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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 Spearmans 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 5. Very important 4. Important 3. Somewhat important 2. Not important 1. Neutral N 30 47 20 15 8 120 Ranking 1.0 0.8 0.6 0.4 0.2
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.
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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. 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.
Where
N = Sample size required Z = Confidence level P = Estimated prevalence of malnutrition C = Confidence interval
N=
= 118.57 119
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UK Libya
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It is clear from the above criteria that the value of C 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) General information Questionnaire (Part II) Project management techniques & practices Ranking Questions Q1.5 Causes of cost/time overrun Q2.3 Benefits of project management practices Q2.5 Factors hindering adoption of PM practices Overall data reliability C 0.751 C 0.838 C 0.797 0.811 0.953 0.844 Questions 5 Questions 8 Elements 7 9 14 Result Acceptable Result Good Result Good Good Excellent Good
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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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
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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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 consultant50 | P a g e
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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 overrun Lack of proper project management practices Inadequate project planning tools Contractor-related factors Owner-related factors Consultant-related factors Project manager-related factors External factors Total Rank 1 2 3 4 5 6 7 Total 43 43 43 43 43 43 43 R.I 0.751 0.701 0.688 0.578 0.472 0.409 0.402 Least Cause 1 1 2 3 6 7 11 13 43 2 2 4 3 7 9 10 8 43 3 4 5 5 4 7 9 9 43 4 6 6 7 6 9 4 5 43 5 7 6 5 7 7 6 5 43 Major Cause 6 11 8 10 8 3 2 1 43 7 12 12 10 5 1 1 2 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 overrun
Lack of proper project management practices Inadequate project planning tools Contractor-related factors Owner-related factors Consultant-related factors Project manager-related factors External factors
Ranking Libya UK
1 2 3 4 5 6 7 5 2 1 6 3 4 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 Spearmans 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.
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
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
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1 1 0 0 1 4 2 6 4 8 26
2 1 1 1 2 3 4 4 5 5 26
3 0 1 1 2 1 3 6 4 8 26
4 1 3 2 4 2 4 2 6 2 26
5 2 1 5 5 4 3 2 4 0 26
6 6 3 5 1 5 3 1 1 1 26
7 3 5 3 5 2 4 3 0 1 26
8 5 7 5 4 2 1 0 1 1 26
9 7 5 4 2 3 2 2 1 0 26
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 Prevent cost and time overruns High profits Quality output Minimised environmental effects Effective monitoring and control High client and employee satisfaction Continuous improvement Enhanced performance Improved safety Total Rank 1 2 3 4 5 6 7 8 9 Total R.I 0.713 0.682 0.602 0.592 0.543 0.537 0.465 0.447 0.419 Least Benefit 1 1 3 2 5 4 6 7 7 8 43 2 2 1 4 3 5 3 7 8 10 43 3 3 3 5 4 7 7 5 5 4 43 4 5 4 3 6 7 3 3 7 5 43 5 3 7 9 3 2 5 7 3 4 43 6 4 3 3 7 3 7 5 4 7 43 Major Benefit 7 6 5 7 4 6 3 6 5 1 43 8 10 7 6 2 4 6 2 3 3 43 9 9 10 4 9 5 3 1 1 1 43
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
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Rank 1 2 3 4 5 6 7 8 9
Total
R.I
Least Benefit
Major Benefit
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environmental effects, and effective monitoring and control are ranked at third, fourth, and 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 Spearmans 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 Ranking Benefits of Project Management Practices Libya UK
Prevent cost and time overruns High profits Quality output Minimised environmental effects Effective monitoring and control High client and employee satisfaction Continuous improvement Enhanced performance Improved safety 1 2 3 4 5 6 7 8 9 1 8 4 5 2 3 7 9 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.
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0 F5 F10 F12 F14 F3 F1 F6 F8 F11 F4 F13 F2 F7 F9 Extreme pressure of project delivery time Changes in scope of the project Economic factors Environmental factors Fear of change Lack of top management commitment Changing client requirements Poor governance Lack of communication between construction parties Conflict between construction parties Social and cultural factors Lack of knowledge, experience, and skills Excessive bureaucracy Wrong person as project manager 1 0 0 0 0 0 1 1 1 1 1 1 0 1
1 1 1 0 1 2 1 1 1 2 2 2 0 0 1
2 3 2 5 4 5 6 6 5 7 6 4 10 11 9
3 4 11 9 10 7 9 7 10 4 7 12 7 10 9
4 17 12 12 11 12 10 11 9 12 10 7 8 5 6 26 26 26 26 26 26 26 26 26 26 26 26 26 26
Total
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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 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)
Neutral V. Imp S. Imp Imp. Not Imp Relative Index 66.05 65.12 63.26 62.79 62.33 58.60 58.14 57.67 56.28 55.81 54.88 54.42 53.95 52.56 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14
0 F10 F2 F3 F1 F7 F9 F6 F8 F13 F4 F12 F11 F5 F14 Changes in scope of the project Lack of knowledge, experience, and skills Fear of change Lack of top management commitment Excessive bureaucracy Wrong person as project manager Changing client requirements Poor governance Social and cultural factors Conflict between construction parties Economic factors Lack of communication between construction parties Extreme pressure of project delivery time Environmental factors 2 1 1 1 0 3 1 2 2 2 0 2 1 4
1 2 2 1 1 3 1 3 2 4 1 1 4 2 3
2 5 3 6 9 8 8 10 9 10 15 18 8 15 11
3 6 16 17 12 13 15 14 16 11 11 15 19 16 12
4 28 21 18 20 19 16 15 14 16 14 9 10 9 13 43 43 43 43 43 43 43 43 43 43 43 43 43 43
The differences between the rankings are clearly evident in table 4.11. In addition, Spearmans 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.
Total
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Problematic Factors
Changes in scope of the project Lack of knowledge, experience, and skills Fear of change Lack of top management commitment Excessive bureaucracy Changing client requirements Wrong person as project manager Poor governance Social and cultural factors Conflict between construction parties Lack of communication between construction parties Economic factors Extreme pressure of project delivery time Environmental factors
Ranking Libya UK
1 2 3 4 5 6 7 8 9 10 11 12 13 14 2 12 5 6 13 14 7 8 11 10 3 9 1 4
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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 three problematic factors causing cost/time overruns in the construction projects in Libya and UK.
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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. 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
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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; 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.
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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. (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).
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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 (Franke, 2010). From Libyan perspective, these factors have a least impact in the
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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 projects 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 projects 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 countrys 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 clientrelated 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 Kingdoms 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.
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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 clients 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.
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Appendices
Appendix A: Questionnaire
Gender: ________________________________
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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Dr. Saeed 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
2.2 Which project management practices you are practicing during the construction process? Please tick one answer Practicing Not Practicing
Project Management Practices 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
0 SCALE Neutral
1 Not Important
2 Somewhat Important
3 Important
4 Very Important
FACTORS 0 F1 F2 F3 F4 F5 F6 F7 Lack of top management commitment Lack of knowledge, experience, and skills Fear of change Conflict between construction parties Extreme pressure of project delivery time Changing client requirements Excessive bureaucracy 1
SCALE 2 3 4
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F8 F9
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
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UK
Frequency Libya 5 21 26 8 35 43
Frequency 26 43 69
Q1.2 - DESIGNATION Owner/client Contractor Sub-contractor Consultant Project Manager Engineer Total
UK
Frequency Libya 5 7 6 3 1 4 26 7 12 11 4 3 6 43
Percentage (%) UK Libya 19.23 26.92 23.08 11.54 3.85 15.38 100 16.28 27.91 25.58 9.30 6.98 13.95 100
Q1.3 PROJECT TYPE Small size Medium size Large size Total
UK
Frequency Libya 9 10 7 26 10 16 17 43
Percentage (%) UK Libya 34.62 38.46 26.92 100 23.26 37.21 39.53 100
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Q1.4 PROJECTS TIME/COST OVERRUN Less than 10% 10 to 30% 30 to 50% 50 to 70% Over 70% Total Frequency Libya 14 7 2 2 1 26 0 3 3 11 26 43
UK
Percentage (%) UK Libya 53.85 26.92 7.69 7.69 3.85 100 0.00 6.98 6.98 25.58 60.47 100
Q1.5 CAUSES OF TIME/COST OVERRUNS (UK PERSPECTIVE) Contractor-related factors Inadequate project planning tools Consultant-related factors Project manager-related factors Lack of proper project management practices Owner-related factors External factors
Least Cause 1 0 2 2 4 5 6 7 2 2 2 2 3 5 5 7 3 3 2 3 5 4 4 5
4 4 2 2 5 5 4 4
Major Cause 5 3 4 6 3 2 5 3 6 5 7 7 3 3 1 0 7 9 7 4 3 2 1 0
Q1.5 CAUSES OF TIME/COST OVERRUNS (LIBYAN PERSPECTIVE) Lack of proper project management practices Inadequate project planning tools Contractor-related factors Owner-related factors Consultant-related factors Project manager-related factors External factors
Least Cause 1 1 2 3 6 7 11 13 2 2 4 3 7 9 10 8 3 4 5 5 4 7 9 9
4 6 6 7 6 9 4 5
Major Cause 5 7 6 5 7 7 6 5 6 11 8 10 8 3 2 1 7 12 12 10 5 1 1 2
UK
Frequency Libya 25 1 26 6 37 43
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Q2.2 PROJECT MANAGEMENT PRACTICES Procurement In use Not in use Partnering In use Not in use Total Risk Management In use Not in use Total Value Management In use Not in use Total Sustainable Construction In use Not in use Total In use Not in use Total Supply Chain Management In use Not in use Total In use Not in use Total
UK
Frequency Libya 25 1 26 13 13 26 24 2 26 19 7 26 22 4 26 23 3 26 24 2 26 26 0 26 38 5 43 40 3 43 19 24 43 6 37 43 39 4 43 25 18 43 40 3 43 37 6 43
Percentage (%) UK Libya 96.15 3.85 100.00 50.00 50.00 100.00 92.31 7.69 100.00 73.08 26.92 100.00 84.62 15.38 100.00 88.46 11.54 100.00 92.31 7.69 100.00 100.00 0.00 100.00 88.37 11.63 100.00 93.02 6.98 100.00 44.19 55.81 100.00 13.95 86.05 100.00 90.70 9.30 100.00 58.14 41.86 100.00 93.02 6.98 100.00 86.05 13.95 100.00
Benchmarking
Lean Construction
Q2.3 BENEFITS OF PROJECT MANAGEMENT PRACTICES (UK PERSPECTIVE) Prevent cost and time overruns Effective monitoring and control High client and employee satisfaction Quality output Minimised environmental effects Improved safety Continuous improvement High profits Enhanced performance
Least Benefit 1 1 0 0 1 4 2 6 4 8 2 1 1 1 2 3 4 4 5 5 3 0 1 1 2 1 3 6 4 8 4 1 3 2 4 2 4 2 6 2
5 2 1 5 5 4 3 2 4 0 6 6 3 5 1 5 3 1 1 1
Major Benefit 7 3 5 3 5 2 4 3 0 1 8 5 7 5 4 2 1 0 1 1 9 7 5 4 2 3 2 2 1 0
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Q2.3 BENEFITS OF PROJECT MANAGEMENT PRACTICES (LIBYAN PERSPECTIVE) Prevent cost and time overruns High profits Quality output Minimised environmental effects Effective monitoring and control High client and employee satisfaction Continuous improvement Enhanced performance Improved safety 4 5 4 3 6 7 3 3 7 5 5 3 7 9 3 2 5 7 3 4 6 4 3 3 7 3 7 5 4 7
Least Benefit 1 1 3 2 5 4 6 7 7 8 2 2 1 4 3 5 3 7 8 10 3 3 3 5 4 7 7 5 5 4
Major Benefit 7 6 5 7 4 6 3 6 5 1 8 10 7 6 2 4 6 2 3 3 9 9 10 4 9 5 3 1 1 1
UK
Frequency Libya 25 1 26 3 40 43
Neutral
Q2.5 FACTORS INFLUENCING PROJECT MANAGEMENT PRACTICES (UK PERSPECTIVE) F5 F10 F12 F14 F3 F1 F6 F8 F11 F4 F13 F2 F7 F9 Extreme pressure of project delivery time Changes in scope of the project Economic factors Environmental factors Fear of change Lack of top management commitment Changing client requirements Poor governance Lack of communication between construction parties Conflict between construction parties Social and cultural factors Lack of knowledge, experience, and skills Excessive bureaucracy Wrong person as project manager
0 1 0 0 0 0 0 1 1 1 1 1 1 0 1
1 1 1 0 1 2 1 1 1 2 2 2 0 0 1
2 3 2 5 4 5 6 6 5 7 6 4 10 11 9
3 4 11 9 10 7 9 7 10 4 7 12 7 10 9
17 12 12 11 12 10 11 9 12 10 7 8 5 6
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S. Imp
Imp.
Not Imp
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Neutral
Q2.5 FACTORS INFLUENCING PROJECT MANAGEMENT PRACTICES (LIBYAN PERSPECTIVE) F10 F2 F3 F1 F7 F9 F6 F8 F13 F4 F12 F11 F5 F14 Changes in scope of the project Lack of knowledge, experience, and skills Fear of change Lack of top management commitment Excessive bureaucracy Wrong person as project manager Changing client requirements Poor governance Social and cultural factors Conflict between construction parties Economic factors Lack of communication between construction parties Extreme pressure of project delivery time Environmental factors
0 2 1 1 1 0 3 1 2 2 2 0 2 1 4
1 2 2 1 1 3 1 3 2 4 1 1 4 2 3
2 5 3 6 9 8 8 10 9 10 15 18 8 15 11
3 6 16 17 12 13 15 14 16 11 11 15 19 16 12
28 21 18 20 19 16 15 14 16 14 9 10 9 13
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S. Imp
Imp.
Not Imp
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Table B1 Spearmans Rank Correlation Matrix Ranking Causes of time/cost overrun Libya UK Lack of proper project management practices 1 5 Inadequate project planning tools 2 2 Contractor-related factors 3 1 Owner-related factors 4 6 Consultant-related factors 5 3 Project manager-related factors 6 4 External factors 7 7 Total
d -4 0 2 -2 2 2 0 0
d2 16 0 4 4 4 4 0
d2 = 32
Formula:
Calculation: A B C 6d2 n(n2 - 1) A/B 1C 6*32 7*(49-1) 192/336 1 0.57 = 192 = 336 = 0.57 = 0.43 (correlation)
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Table B2 Spearmans Rank Correlation Matrix Ranking Benefits of Project Management Practices Libya UK Prevent cost and time overruns 1 1 High profits 2 8 Quality output 3 4 Minimised environmental effects 4 5 Effective monitoring and control 5 2 High client and employee satisfaction 6 3 Continuous improvement 7 7 Enhanced performance 8 9 Improved safety 9 6 Total
d 0 -6 -1 -1 3 3 0 -1 3 0
d2 0 36 1 1 9 9 0 1 9
d2 = 66
Formula:
Calculation: A B C 6d2 n(n2 - 1) A/B 1C 6*66 9*(81-1) 396/720 1 0.55 = 396 = 720 = 0.55 = 0.45 (correlation)
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Table B3 Ranking comparison Ranking Problematic Factors Libya UK Changes in scope of the project 1 2 Lack of knowledge, experience, and skills 2 12 Fear of change 3 5 Lack of top management commitment 4 6 Excessive bureaucracy 5 13 Wrong person as project manager 6 14 Changing client requirements 7 7 Poor governance 8 8 Social and cultural factors 9 11 Conflict between construction parties 10 10 Economic factors 11 3 Lack of communication b/w construction parties 12 9 Extreme pressure of project delivery time 13 1 Environmental factors 14 4 Total
d -1 -10 -2 -2 -8 -8 0 0 -2 0 8 3 12 10 0
Formula:
Calculation: A B C 6d2 n(n2 - 1) A/B 1C 6*558 14*(196-1) 3336/2730 1 1.22 = 3348 = 2730 = 1.23 = 0.23 (correlation)
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