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Construction Management: New Directions, 3rd Edition


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Construction Management: New Directions, 3rd Edition

Denny McGeorge, Patrick X. W. Zou

ISBN: 978-0-470-67401-7 December 2012 Wiley-Blackwell 320 Pages


The construction industry faces continual challenges and demands, due to market conditions and coercion by governments, for improvements in safety, quality and cost control, and in the avoidance of contractual disputes. To meet these challenges construction enterprises need to constantly seek new directions and business models in construction management.  A number of tools, methods and concepts have been developed and advocated as aids to achieving improved performance, but many in the industry find them confusing or are sceptical of their relevance.    

The third edition of Construction Management: New Directionsbrings together, in a single volume, detailed discussion of a range of contemporary management concepts which are relevant to the construction industry, including strategic management; benchmarking; reengineering; partnering and alliancing; enterprise risk management; total safety management; total quality management; value management and constructability. It provides a straightforward, accessible and objective account of these concepts, showing how they interrelate and can be used to improve the performance of the construction firm.

This research based text will be essential reading for industry leaders and practitioners, as well as researchers, postgraduate and senior undergraduate students.

From a review of previous editions

I am in no doubt that this book will quickly become a favourite among students and practitioners alike —Construction Manager

Preface to Third Edition ix

Acknowledgements xiii

1 The Culture of the Construction Industry 1

The book ’ s contents 4

References 7

2 Strategic Management 9

Introduction 9

Overview 10

Strategic management process 12

Strategic management in construction 14

Paradoxes of strategic management processes in construction 17

Developing and implementing strategy in construction 18

Change management 19

Linking operational actions to strategy using a balanced scorecard 20

Stakeholder identification, analysis and consultation 22

Strategic management in action – a case study of Arup 25

An integrated strategic management framework 30

Conclusion 32

References 32

3 Benchmarking 35

Introduction 35

Definition of benchmarking 37

Historical development 38

Types of benchmarking 39

The process of benchmarking 42

The benchmarking team 54

Benchmarking Code of Conduct 55

Legal considerations 55

Benchmarking: The major issues 56

Case studies 59

Conclusion 61

References 62

4 Reengineering 65

Introduction 65

Reengineering: What’s in a name? 67

Origins of reengineering 68

Reengineering in a construction industry context 68

The goals of reengineering 70

Reengineering methodology 73

Pitfalls of reengineering 78

Information technology and reengineering 80

Reengineering from a European perspective 83

A case study of a process reengineering study in the Australian construction industry 84

Conclusion 92

References 94

5 Partnering and Alliancing 97

Introduction 97

The origins of partnering 98

Partnering in a construction industry context 98

The goals of partnering 99

Categories of partnering 100

Project partnering 101

Strategic or multi-project partnering 112

Legal and contractual implications of partnering 114

Dispute resolution 117

Partnering: Overview 118

Project alliancing – a natural progression from project partnering? 120

Alliance definitions 121

Alliancing in the construction industry 122

The differences between alliancing and partnering 122

Critical success factors in alliancing 124

The financial arrangements 125

The project outcome 126

Postscript 127

References 128

6 Enterprise Risk Management 132

Introduction 132

Why ERM in the construction industry? 133

Key terms and definitions 135

ERM principles and processes 136

The COSO ERM 137

AS/NZS ISO 31000 Risk Management Standard 138

Establish objectives, context and criteria 138

Risk identification 140

Risk analysis and evaluation 140

Risk response and monitoring 141

Risk review and learning 142

Risk communication and consultation 143

A comparison of risk management processes 143

ERM application techniques 144

Implementing ERM in the construction industry 144

Organisational culture and ERM 146

ERM performance 147

ERM misconceptions 148

Relationship between ERM and strategic planning 148

Improving ERM capability and maturity 149

The ERM3 model 150

ERM3 example 154

ERM capability improvement 156

Project risk management 157

Conclusion 159

References 160

7 Total Safety Management 163

Introduction 163

The science of safety management 164

What is safety risk assessment at the design stage? 164

Why safety risk assessment at design? 165

Barriers for implementing safety risk assessment at design 167

Methods for safety risk assessment at design 167

Case study 169

The art of safety management 176

Components of a safety culture 177

Dimensions of a safety culture 178

Safety culture maturity models 179

A construction safety maturity model 181

Development of measurement instruments 182

Conclusion 184

References 186

8 Total Quality Management 191

Introduction 191

Definition of TQM 191

What is quality? 193

Historical development of TQM 194

The need for a paradigm shift 197

A change in the culture of the construction industry 198

Customer focus 200

Integration 201

The all-embracing nature of TQM 206

Continuous improvement 206

Quality costs and the cost of quality 207

Universal standards of quality such as ISO 9000 208

Change management 209

The methods of TQM 209

How to implement TQM 209

Kaizen 210

Current research into TQM in the construction industry 210

Conclusion 211

References 212

9 Value Management 214

Introduction 214

Historical development 215

Function analysis 218

Organisation of the function analysis study 226

Who should carry out the study? 226

Who should constitute the team? 227

How should alternatives be evaluated? 231

Value management as a system 232

The American system 233

A case study of value management in the United States 233

The British/European system 235

A case study of value management in the UK 236

Value management in Australia 239

A case study of value management (and constructability) in Australia 240

The Japanese system 244

A case study of value management in Japan 244

Why are the systems different? 245

Differences in the style of management 246

Differences in management systems 246

The relationship between value management and quantity surveying 247

Conclusion 247

References 249

10 Constructability 251

Introduction 251

Origins 252

The goals of constructability 253

Implementing constructability 255

Constructability in practice 258

Constructability and the building product 260

Constructability and Building Information Modelling 263

Good and bad constructability 264

Quantifying the benefits of constructability 269

Conclusion 270

References 271

11 Linking the Concepts 274

References 280

Bibliography 282

Index 296