it enhanced communication protocols for building project ... · 2.8 factors affecting ict adoption...

IT Enhanced Communication Protocols for

Building Project Management By Small and Medium Enterprises In The Indian Construction Industry

By Vanita Ahuja

Bachelor of Architecture

Masters in Building Science and Construction Management

A thesis submitted in partial fulfillment of the requirements for the degree of

Doctor of Philosophy

2007

QUEENSLAND UNIVERSITY OF TECHNOLOGY

School of Urban Development Faculty of Built Environment and Engineering

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ABSTRACT AND KEY WORDS

The Research has developed protocols for effective adoption of Information

Communication Technologies (ICT) for Building Project Management by Small and

Medium Enterprises (SMEs) in the Indian construction industry.

Project Managers are required to facilitate the integration of work of all the agencies and

project team organizations are geographically separated beyond national boundaries or

in context of large countries like India, within the national boundaries. In doing so, there

is a need to make better use of information and knowledge generated in all stages of

development. The key to project information management is the information flow

associated with inter-organizational communication and the effectiveness of the project

manager to communicate with and feedback to the rest of the project team throughout

the project life cycle. Better communication can be achieved by using computer tools for

effective data processing and information management, through Information

Communication Technologies (ICT). As the majority of the construction organizations

are Small and Medium Enterprises (SMEs), the communication management research is

required to address management and communication processes adopted by SMEs. These

issues can be addressed by global research, but also require clear understanding of the

management and communication processes followed by SMEs of each distinct regional

area or country.

The research was conducted through a sequential mixed methods approach focusing on

collecting and analyzing both quantitative and qualitative data in the study in a

sequential manner. To develop a balance check mechanism, the research was divided

into four phases: Interpretive analysis of perceived benefits of use of ICT for building

project management, conducted by Interpretive Structural Modeling analysis;

Questionnaire survey data collection and empirical analysis of data including Structural

Equation Modeling analysis (quantitative method); Semi-structured interview survey

data collection and analysis including Data Envelopment Analysis (quantitative and

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qualitative method) and case studies analysis conducted by SAP-LAP analysis

(qualitative method) leading to synthesis of the results of the four phases. The

purpose of this four-phase, sequential mixed methods study was to start with the

pragmatic assumptions; obtain statistical, quantitative results from a broad sample of

organizations to analyze or study research variables at industry and organization

levels and then follow up with a few organizations and projects to study the research

variables at the level of the organization and people.

Synthesis of the knowledge enhancement from the literature survey, data analysis

results and their interpretation led to the proposed ‘IT Enhanced Communication

Protocols for Building Project Management’. The protocols are proposed as a

‘Strategic Model for Enhancing ICT Diffusion in Building Projects’. The model is

based on Everett Rogers’s ‘Diffusions of innovations theory’ and is formulated at

three levels of study i.e industry, organization and people. It is discussed as a generic

framework of five stages of Roger’s ‘Diffusions of innovations theory’ i.e

Knowledge, Persuasion, Decision, Implementation and Confirmation.

Keywords: building project management, ICT, Indian construction industry, SMEs

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TABLE OF CONTENTS Title Page Abstract and Key Words i Table of Contents iii List of Figures x List of Tables xiii List of Abbreviations and Acronyms xvi Acknowledgement xviii Publications xx Statement of Original Authorship xxi Chapter 1: Introduction 1.1 Research Background 1

1.1.1 Building Project Management and ICT 1 1.1.2 ICT Adoption in the Construction Industry and Research

Requirements 2 1.1.3 IT Enhanced communication protocols 4

1.2 Research Problem, Aim and Objectives 5 1.2.1 Research Aim 5 1.2.2 Research Objectives 6

1.3 Research Overview 7 1.4 Delimitation of Scope 10 1.5 Outline of the Thesis 11 1.6 Summary 13 Chapter 2: Literature Review 2.1 Introduction 15 2.2 Construction Information and ICT 16 2.3 ICT and Building Project Management 17 2.4 ICT Tools and Technologies 19 2.5 Small and Medium Enterprises (SMEs) and the Indian Construction

Industry 23 2.5.1 Definition of SMEs 23 2.5.2 SMEs and the construction Industry 24 2.5.3 Characteristics and Specific Requirements of SMEs 25 2.5.4 Indian Construction Industry 27

2.6 Characteristics of Global Research and Research in India 29 2.7 Strategic Adoption of ICT in the Construction Industry 32

2.7.1 Requirement of Strategic Adoption of ICT by the Construction Industry at the Level of each Organization and at the Industry Level 33

2.7.2 Benchmarking a Strategic Tool 36 2.7.2.1 Benchmarking Definition 39

2.8 Factors Affecting ICT Adoption for Building Project Management 43

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2.8.1 Strategic Adoption and Diffusion of ICT 44 2.8.2 Cultural Factors 46 2.8.3 Available Technology 48 2.8.4 Training and Education 48 2.8.5 Organization Level Factors 49 2.8.6 Perception Based Factors 50

2.8.6.1 Perceived Benefits 50 2.8.6.2 Perceived Barriers 51

2.8.7 Industry Drivers 53 2.8.8 Summary of Factors 54

2.9 Strength of the Contemporary Research 56 2.10 Gaps in Contemporary Research and Identification of Research

Areas 57 2.11 Summary 59 Chapter 3: Research Methodology 3.1 Introduction 61 3.2 Research Variables 61

3.2.1 Justification of the Chosen Research Variables 62 3.3 Hypotheses Formulation 64

3.3.1 Hypotheses Determining Dimensions of Qualitative Factors 64 3.3.2 Hypotheses of Causal Relationships 64 3.3.3 Supplementary Hypotheses 65

3.4 Research Design 65 3.4.1 Understanding of the Characteristics of Research Problem 65 3.4.2 Unit of Analysis 67 3.4.3 Data Collection and Analysis Approach 67

3.5 Research Methods 70 3.5.1 Interpretive Structural Modeling (ISM) 71 3.5.2 Questionnaire Survey (Industry Level) 72

3.5.2.1 Questionnaire Design 73 3.5.2.2 Survey Population 74 3.5.2.3 Validation of Questionnaire 75 3.5.2.4 Pilot Survey 76 3.5.2.5 Survey Administration 77 3.5.2.6 Data Analysis 78

3.5.3 Semi-Structured Interview Survey (Organization level) 82 3.5.3.1 Benchmarking Structure Attributes 83 3.5.3.2 Benchmarking Framework Administration 85 3.5.3.3 Data Envelopment Analysis (DEA) Technique 88

3.5.4 Case Studies (Organization and Project level) 94 3.5.4.1 SAP-LAP Analysis 95

3.6 Data Analysis Results Synthesis Methodology and Framework for Results Formulation 99

3.6.1 Categorization of Organizations and People Based on ICT Adoption 101

3.7 Justification of the Methodology 105 3.8 Summary 106

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Chapter 4: Interpretive Structural Modeling Analysis 4.1 Introduction 109 4.2 Interpretive Structural Modeling (ISM) 109 4.3 Analysis 111

4.3.1 Research Variables 111 4.3.2 Structural Self-Interaction Matrix (S SIM) 111 4.3.3 Reachability Matrix 113 4.3.4 Level Partitions 116 4.3.5 Developing Conical Matrix 118 4.3.6 ISM Based Model 119

4.4 MICMAC Analysis 123 4.5 Discussion and Hypotheses Formulation 124 4.6 Further Analysis 126 4.7 Summary 126 Chapter 5: Questionnaire Survey Data Analysis 5.1 Introduction 127 5.2 Respondents’ Profile 127 5.3 Data Reliability 130 5.4 Hypothesis Testing 131

5.4.1 Hypotheses Determining Dimensions of Qualitative Factors 131 5.4.1.1 Hypothesis HD1 131 5.4.1.2 Hypothesis HD2 and HD3 132 5.4.1.3 Hypothesis HD4 133 5.4.1.4 Hypothesis HD5 134 5.4.1.5 Hypothesis HD6 136

5.4.2 Hypotheses of Causal Relationships – Hypothesis HR1 137 5.4.3 Supplementary Hypotheses 140

5.4.3.1 Hypothesis HS1 140 5.4.3.2 Hypothesis HS2 141 5.4.3.3 Hypothesis HS3 144 5.4.3.4 Hypothesis HS4 145

5.5 Status of ICT Adoption in the Indian Construction Industry 146 5.6 Perception Based Data Analysis 153

5.6.1 Perceived Barriers 154 5.6.2 Perceived Enablers 156 5.6.3 Perceived Benefits 159 5.6.4 Scenario Building for the Industry 161

5.7 Cultural Factors 163 5.8 Issues Identified from the Open Ended Questions 168 5.9 Findings of Data Analysis and Further Analysis Requirement 169

5.9.1 Identified Issues for Actions Required at the Level of Industry, Organization or People 169

5.9.2 Cultural Factors that are required to be Considered 174 5.9.3 Issues that require Further Study 175

5.10 Summary 176

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Chapter 6: Structural Equation Modeling Analysis on Questionnaire Survey Data

6.1 Introduction 177 6.2 Structural Model Derived from the Hypotheses of Causal

Relationships 177 6.3 Model Specification 178 6.4 Structural Equation Modeling (SEM) 181 6.5 Data Collection 183 6.6 Analysis 183

6.6.1 Data Validity 184 6.6.2 Statistical Results and Analysis of the Hypothesized Model 184 6.6.3 Model Modification – Step 1 187 6.6.4 Model Modification - Step 2 188 6.6.5 Model Modification – Step 3 (Final Model) 190

6.7 Discussion and Findings 192 6.7.1 Discussion 192

6.7.2 Findings 195 6.8 Summary 198 Chapter 7: Benchmarking Framework Development and Case Study Analysis 7.1 Introduction 199 7.2 Benchmarking Framework Development 199

7.2.1 Objectives of the Required Benchmarking Framework 200 7.2.2 Benchmarking Framework Development, Structure and

Measurement System 201 7.2.3 Benchmarking Framework and the Organization Management

Information Systems 205 7.2.4 Benchmarking Framework Attributes 207

7.3 Benchmarking Process 208 7.4 Benchmarking Framework Administration and Finalization 209

7.4.1 Benchmarked Organizations 209 7.4.2 Benchmarking of Organizations and Analysis 212 7.4.3 Benchmarking Framework Validation and Finalization 225 7.4.4 BenchMeasurement 226 7.4.5 Benchmarking and BenchMeasurement Discussion 230

7.5 Bench Learning - Case Study Analysis 231 7.5.1 Actors 234 7.5.2 Processes 234 7.5.3 Case Study 1: Real Estate Organization (REO) 234

7.5.3.1 Introduction 234 7.5.3.2 ICT Adoption for Building Project Management – Strategic Issues 236 7.5.3.3 Extent of ICT Adoption for Building Project Management 236 7.5.3.4 Perceptions of the Senior Managers and Project Managers 237 7.5.3.5 Factors Perceived as affecting use of ICT for Building Project Management 238 7.5.3.6 Situation 238

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7.5.3.7 Learning 240 7.5.4 Case Study 2: Project Management Consultancy Organization (PMCO) 241

7.5.4.1 Introduction 241 7.5.4.2 ICT Adoption for Building Project Management – Strategic Issues 242 7.5.4.3 Extent of ICT Adoption for Building Project Management 243 7.5.4.4 Perceptions of the Senior Managers and Project Managers 244 7.5.4.5 Factors Perceived as affecting use of ICT for Building Project Management 244 7.5.4.6 Situation 245 7.5.4.7 Learning 246

7.5.5 Case Study 3 – Architectural Organization (AO) 248 7.5.5.1 Introduction 248 7.5.5.2 ICT Adoption for Building Project Management – Strategic Issues 249 7.5.5.3 Extent of ICT Adoption for Building Project Management 249 7.5.5.4 Perceptions of the Senior Managers and Project Managers 250 7.5.5.5 Factors Perceived as affecting use of ICT for Building Project Management 251 7.5.5.6 Situation 252 7.5.5.7 Learning 253

7.5.6 Action and Performance 253 7.5.7 SAP-LAP Synthesis of Case Studies 257

7.6 Synthesis of the Case Study Analysis Results and Framework for BenchAction and BenchMonitoring 260

7.7 Discussion 264 7.8 Suggested Benchmarking Framework with Reference to

The Existing Benchmarking Studies 266 7.9 Summary 267 Chapter 8: Interpretation of Data Analysis and Discussions 8.1 Introduction 269 8.2 Synthesis of the Study 269

8.2.1 Status of ICT Adoption for Building Project Management 270 8.2.2 Perceived Barriers, Benefits and Enablers for Effective

ICT Adoption 272 8.2.3 Causal Relationships between Factors 275 8.2.4 Cultural Factors 276 8.2.5 Benchmarking Framework Analysis 278

8.3 Model of IT Enhanced Communication Protocols for Building Project Management 285

8.3.1 Industry Level Framework for Planning, Designing and Implementing ‘Strategic Model for Enhancing ICT Diffusion for Building Project Management’ 286

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8.3.2 Organization Level Framework for Planning, Designing and Implementing ‘Strategic Model for Enhancing ICT Diffusion for Building Project Management’ 290

8.3.2.1 Step 1: Knowledge, Persuasion and Decision 292 8.3.2.2 Step 2: Finalization and Implementation of the Strategy for ICT Adoption for Building Project Management 293 8.3.2.3 Step 3: Planning 296 8.3.2.4 Step 4: System Design and preparation of organization for the new system 296 8.3.2.5 Step 5: Familiarizing associating organizations with the system adopted 296 8.3.2.6 Step 6: Pilot Implementation 297 8.3.2.7 Step 7: System Implementation 297 8.3.2.8 Step 8: Post Implementation System Monitoring 297

8.3.3 Framework at the Level of Construction Professionals or People 298 8.3.4 Discussion 299

8.4 Summary 300 Chapter 9: Summary and Conclusions 9.1 Introduction 301 9.2 Summary of Research Findings 301

9.2.1 Summary of Research Process 301 9.2.2 Summary with Respect to Research Objectives 303

9.2.2.1 Research objectives (i,ii) 304 9.2.2.2 Research objective (iii - v) 305 9.2.2.3 Research objective (vi) 307 9.2.2.4 Research objective (vii) 307 9.2.2.5 Research objective (viii) 308

9.2.3 Summary of Data Analysis 310 9.3 Significant Research Contributions 313 9.4 Implications and Relevant Research Audience 315

9.4.1 Implications for National level bodies and Academic Institutions 315

9.4.2 Implications for Construction Organizations 316 9.4.3 Implications for People or Project Managers 316 9.4.4 Implications at International Level 317

9.5 Limitations of the Research Study 317 9.5.1 Limitations with respect to the Questionnaire Survey and Data Analysis 317 9.5.2 Limitations with respect to the Benchmarking Framework

Analysis 317 9.6 Recommendations for Future Research 318 9.7 Summary 319

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References 321 List of Appendices Appendix A: Questionnaire Survey 345 Appendix B: Interpretive Structural Modeling (ISM) Calculations 363 Appendix C: Structural Equation Modeling (SEM) Analysis Data 367 Appendix D: Benchmarking Framework 373 Appendix E: Data Envelopment Analysis (DEA) Data 379

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LIST OF FIGURES Figure 1.1: Relation between Industry, Organization and People 5 Figure 1.2: Research Overview 9 Figure 2.1: Relation of ‘Strategy for ICT Adoption’ with the other Strategies of the Organization 33 Figure 2.2: Classification of Types of Benchmarking 41 Figure 2.3: Factors Affecting ICT Adoption for Building Project Management 55 Figure 3.1: Benchmarking Process Model 87 Figure 3.2: Graph Explaining the Concept of Efficiency Frontier 90 Figure 3.3: Graph Showing Production Function of CRS and IRS 92 Figure 3.4: SAP-LAP Paradigm 98 Figure 3.5: SAP-LAP Paradigm Synthesizes Analytic as well as Synthetic Mode of Inquiry 98 Figure 3.6: Rogers’s Five-Stage Model for D iffusion of Innovation 100 Figure 3.7: Rogers’s Technology Adoption Curve 102 Figure 3.8: Geofrey Moore’s Modified Technology Adoption Curve 102 Figure 3.9: Relation between Difficulty of Changing Versus Cost of Change 103 Figure 3.10: Research Framework 107 Figure 4.1: ISM Based Model 120

Figure 4.2: MICMAC Analysis (Driving Power and Dependence Diagram) 124 Figure 5.1: Distribution of the Respondent Organizations with respect to the Type of Organization 128 Figure 5.2: Distribution of the Respondent Organizations with Respect to the Size of Organizations 129 Figure 5.3: Mode of Project Execution by the Respondent Organizations (in last 5 years) 129 Figure 5.4: Distribution of the Respondents with Respect to Number of Years of Experience 130 Figure 5.5: Distribution of organizations (in %) for variable ICT adoption on Building Projects 135 Figure 5.6: Distribution of Respondent Organizations as per the Turnover in Indian Rupees (INR) 138 Figure 5.7: Percentage of office and site staff with access to computers 146 Figure 5.8: Distribution of Respondent Organizations for Rate of Increase of IT based Communication in last 5 years 147 Figure 5.9: Distribution of Organization for the Method of Receiving Bids 148 Figure 5.10: Distribution of Organizations for formal Time and Cost Management Processes Adoption 149 Figure 5.11: Mean and Std. Deviation Values of Respondent Organizations for Scores for Formal Time and Cost Management Processes Adoption 150 Figure 5.12: Method of Communicating Electronic Information within Office and with Project Sites 151

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Figure 5.13: Method of Communicating Electronic Information between Office and other Project Agencies 152 Figure 5.14: Relation between the groups in which the perceptions are studied 154 Figure 5.15: Matrix with the Distribution of Organizations for Different

Levels of Perceptions of Barriers and Benefits and Results of Scenario Building 162

Figure 5.16: Identified Issues and Cultural Factors 175 Figure 6.1: Structural Model Derived from the Hypotheses of Causal Relationships 179 Figure 6.2: Hypothesized Model to be tested 181 Figure 6.3: Modified Structural Model – Step 1 187 Figure 6.4: Modified Structural Model – Step 2 188 Figure 6.5: Standardized Path Coefficients and Factor Loadings of Model Modification - Step 3 (Final Model) 192 Figure 6.6: Final Structural Model 194 Figure 6.7: Aggregate Scores of Respondent Organizations for Tools used for Identified Project Management Processes 197 Figure 6.8: Mean and Std. Deviation of Respondent Organizations for Scores for Tools used for Project Management Processes 197 Figure 7.1: Relationship between Performance/Measurement Indicators 204 Figure 7.2: Construction Project Management Organization Structure with Respect to Decision Making and Information Management 206 Figure 7.3: Benchmarking Framework Indicators Spanning all the Levels of the Organizations 207 Figure 7.4: Comparison of Performance Measures Values of MI1 213 Figure 7.5: Comparison of Performance Measures Values of MI2 214 Figure 7.6: Comparison of Performance Measures Values of MI3 215 Figure 7.7: Comparison of Performance Measures Values of MI4 216 Figure 7.8: Comparison of Performance Measures Values of MI5 217 Figure 7.9: Comparison of Performance Measures Values of MI6 219 Figure 7.10: Comparison of Performance Measures Values of MI7 220 Figure 7.11: Comparison of Performance Measures Values of MI8 221 Figure 7.12: Comparison of Measurement Indicator Values for Three Organizations 222 Figure 7.13: Reference Comparison Values of PMCO with respect to REO 228 Figure 7.14: Reference Comparison Values of AO with respect to REO 229 Figure 7.15: Reference Contribution Values of PMCO and AO for Determining Potential Improvement Values of REO 230 Figure 7.16: Relation between Rating and Efficiency of Analyzed Organizations 231 Figure 7.17: Relation between all Data Analysis Components 232 Figure 7.18: Suggested Benchmarking Process 263 Figure 8.1: Salient Features of the Suggested Benchmarking Framework 279 Figure 8.2: Categorization of Building Project Management Organizations for ICT Adoption as Derived from the Benchmarking Framework 284

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Figure 8.3: Industry Level Framework for Planning, Designing and Implementing ‘Strategic Model for Enhancing ICT Diffusion

in Building Projects’ 287 Figure 8.4: Organization Level Framework for Planning, Designing and

Implementing ‘Strategic Model for Enhancing ICT Diffusion in Building Projects’ 291 Figure 8.5: Schematic Diagram of Model for Diffusion of ICT in the Indian Construction Industry for Buildin g Project Management 299 Figure 9.1: Categorization of Data Collection and Analysis Techniques and their Relation 303 Figure 9.2: Input Research Constructs and Output analysis Results at Each Stage of Study 311 Figure 9.3: Proposed Parameters for Measuring ICT Adoption for Building Project Management by Construction Organizations 312

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LIST OF TABLES Table 2.1: Research Papers Discussing Research Conducted in India for IT Adoption by the Construction Industry 32 Table 2.2: Research Papers Discussing National Level Research Initiatives 37 Table 2.3: Research Papers Discussing International Research in Formulating Methodologies for Evaluating Information Systems in the Construction Industry 38 Table 2.4: Definitions and Salient Features of Benchmarking 39 Table 2.5: Research Papers Discussing Strategic Adoption of ICT in the Construction Industry 45 Table 2.6: Research Papers Discussing Synergy between Technology, Process and Cultural Issues 47 Table 2.7: Research Papers Discussing Perceived Benefits and Barriers of ICT Adoption in the Construction Industry 54 Table 2.8: Summarization of Research Conducted, Research Required and Validation of the Research Objectives 57 Table 3.1: Identification of Micro Variables for the Macro Variables and Type of Study Required for Each Variable 63 Table 3.2: Categorization of Organizations With Respect to Adoption of ICT and the Type of Change Required in the Process 104 Table 4.1: Perceived Benefits of ICT Adoption for Building Project Management 112 Table 4.2: Structural Self Interaction Matrix 114 Table 4.3: Initial Reachability Matrix 115 Table 4.4: Final Reachability Matrix with Transitivities (1) 115 Table 4.5: Iteration I 117 Table 4.6: Levels of Benefits 118 Table 4.7: Conical Form of Reachability Matrix 119 Table 5.1: Cronbach’s Alpha Values 130 Table 5.2: Non Parametric Friedman Test for Ranking Extent of Use of ICT between Different Groups 132 Table 5.3: Wilcoxon Signed Ranks Test for Comparing Internal

and External/collaborative use of ICT for Building Project Management 132

Table 5.4: Descriptive Statistics of Test Variables of Hypotheses HD2 and HD3 133 Table 5.5: t-test results for Hypotheses HD2 and HD3 133 Table 5.6: Organizations having Communication Management Strategy within the Organization 134 Table 5.7: Extent of ICT Adoption Varies between Different Projects 134 Table 5.8: Wilcoxon Signed Ranks Test for Comparing Reasons for Differential ICT Adoption on Building Projects 136 Table 5.9: Wilcoxon Signed Ranks Test for Comparing scores of Personal Meetings and Teleconferences 137 Table 5.10: Oneway ANOVA Test for Testing Relation between Turnover of the Organization and Extent of Use of ICT 139 Table 5.11: Descriptive Statistics for Hypothesis HR1 140

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Table 5.12: Descriptive Statistics of test variable 'benefits' 141 Table 5.13: t-test Results for Perceived Importance of Benefits of use of ICT for Building Project Management 141 Table 5.14: Mean and Std. Deviation of the Perceived Industry Drivers 142 Table 5.15: Descriptive Statistics of Test Variable 'drivers' 143 Table 5.16: t-test Results for Perceived Industry Drivers for Increased Use of ICT for Building Project Management 144 Table 5.17: Descriptive Statistics for Hypothesis HS3 144 Table 5.18: Oneway ANOVA Test for Difference in Use of ICT for Different Groups of Sample Organizations 145 Table 5.19: Correlation Between Four Groups of Benefits 145 Table 5.20: Oneway ANOVA Test for Testing Relation between 'Percentage of Site Staff with Access to Computers' and 'Extent of ICT Adoption' 146 Table 5.21: Descriptive Statistics of 'Extent of ICT Adoption' for Distribution of 'Percentage of Site Staff with Access to Computers' 147 Table 5.22: Software used for Building Project Management 153 Table 5.23: Descriptive Statistics – Perceived Barriers 155 Table 5.24: Descriptive Statistics – Perceived Enablers 157 Table 5.25: Descriptive Statistics – Perceived Benefits 160 Table 5.26: Mean and Std. Deviation for Test Variable ‘emailpho’ 163 Table 5.27: t-test Results for Communication in which e-mail is followed by Phone Call 163 Table 5.28: Mode of Information Storage 164 Table 5.29: Response of Organizations for Methodology Most Often Used

for Communicating Information for General Administration Processes (80%-100% times) 165

Table 5.30: Response of Organizations for Methodology Most Often Used for Communicating Information for Building Project Management

Processes (80%-100% times) 166 Table 5.31: Descriptive Statistics for the Perceived Factors 167 Table 5.32: Identified Issues that are required to be Addressed 169 Table 6.1: Model Specification 180 Table 6.2: Regression Weights/Path Coefficients and Factor Loadings 185 Table 6.3: Covariance between Exogenous Variables 186 Table 6.4: Estimates 189 Table 6.5: Model Fit Indices 190 Table 6.6: Squared Multiple Correlations 191 Table 7.1: Identified Gaps in Practice and Trends 223 Table 7.2: Categorization of Identified Trends 225 Table 7.3: Inputs and Outputs for DEA Analysis 226 Table 7.4: Data Values for Three Analyzed Organizations 227 Table 7.5: Efficiency Scores for Analyzed Organizations 227 Table 7.6: Potential Improvement Required in REO 229 Table 7.7: Gaps in Practice and the Identified Reasons (REO) 241 Table 7.8: Gaps in Practice and the Identified Reasons (PMCO) 247 Table 7.9: Gaps in Practice and the Identified Reasons (AO) 254 Table 7.10: Actions Required to Increase ICT Adoption for Building Project Management in the Studied Organizations and Expected Performance Changes 255

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Table 7.11: Relation between Identified Trends and Collective Actions 257 Table 7.12: Relation between Identified Trends, Gaps in Practice and Suggested Actions 262 Table 8.1: Relation between the Suggested Scenario Building framework

and the Benchmarking Framework 275 Table 8.2: Required Strategic Industry Level Implementation Actions 288

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LIST OF ABBREVIATIONS AND ACRONYMS 3D 3 Dimensional 4D 4 Dimensional AEC Architecture Engineering Construction AMC Annual Maintenance Contract AMOS Analysis of Moment Structures ANOVA Analysis of Variance AO Architectural Organization ASEAN Association of South East Asian Nations B2B Business to Business CD Compact Disc CDT Corporación de Desarrollo Tecnológico CEO Chief Executive Officer EDM Electronic Document Management CFI Comparative fit index CIC Computer Integrated Construction CII Construction Industry Institute CORENET Construction and Real Estate NETwork CRC CI Cooperative Research Center for Construction Innovation CRS Constant Returns to Scale CSCW Computer Supported Collaborative Work DEA Data Envelopment Analysis DISR Department of Industry, Science and Resources DMU Decision Making Unit DRS Decreasing Returns to Scale DTI Department of Trade and Industry ERP Enterprise Resource Planning FM Facilities Management GDP Gross Domestic Product GFI Goodness of Fit index GIS Geographical Information System GPS Global Positioning System HR Human Resource HVAC Heating Ventilating and Air Conditioning I-O Input-Output ICPM Integrated Construction Project Management ICT Information Communication Technologies IFC Industry Foundation Classes IM Interactive Management INR Indian Rupees IRS Increasing Returns to Scale IS Information Systems ISM Interpretive Structural Modeling ISO International Standardization Organization IT Information Technology KPI Key Performance Indicators LAN Local Area Network

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M&E Material and Equipment MI Measurement Indicator MIS Management Information Systems MS Microsoft NFI Normed fit index ORCM Online Remote Construction Ma nagement PM Project Management PMBOK Project Management Book of Knowledge PMCO Project Management Consultancy Organization PMI Project Management Institute R&D Research and Development REO Real Estate Organization RFI Request for Information RFID Radio Frequency Identification Device RMSEA Root Mean Square Error of Approximation SAP-LAP Situation Actor Process – Learning Action Performance SEM Structural Equation Modeling SME Small and Medium Enterprise SPSS Statistical Package for Social Sciences SSIM Structural Self- Interaction Matrix STD. Standard STEP Standard for the Exchange of Product data TPC Technology-process-culture UK United Kingdom US United States USA United States of America USB Universal Serial Bus VRS Variable Returns to Scale WAN Wide Area Network

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ACKNOWLEDGEMENT

The journey of my research study has been challenging, exciting, apprehensive and a

novel experience for me. Research was primarily conducted in India, but I never felt

alien to the administrative and education system of QUT.

I would like to express my sincere gratitude and thanks to my principal supervisor,

Associate Professor Jay Yang for having faith in me and giving me an opportunity to

conduct research under his supervision, as an external student. His insightful advice

and constant support was always a great help.

I would like to thank my external supervisor, Assistant Professor Ravi Shankar for

his invaluable and enriching comments, for spending lot of his valuable time in

supervising me and for providing structure to my research. The rigorous analysis in

this research has been possible due to the infrastructure support that I received from

his institute, IIT Delhi.

I am grateful to my associate supervisor, Professor Martin Skitmore for his

invaluable suggestions in the early stages of the research, as they provided a

direction to the research.

I would like to thank administrative staff of BEE research office as well as of other

departments of QUT with whom I have communicated during these three years. They

helped me in having a smooth research journey and I never felt that I was so much

geographically away from QUT.

I am grateful to all the respondents of questionnaire survey for taking out time from

their busy routine to answer the questionnaire and to Dr. Tulsi Adhikari for providing

necessary help.

My husband Punit and my parents have always been there for me as a rock support.

Last but not the least I want to thank my children Satvik and Bhumika who at their

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tender age understood the importance of this research for me. In the beginning it was

difficult for them to comprehend it, but by the end of the research period they were

keeping a check on my timeline and helping me in every possible way that they

could. This research would not have been possible without their support. I dedicate

this thesis to them.

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PUBLICATIONS

Papers Published

Yang, J., Ahuja, V. and Shankar, R., 2007. Managing Building Projects through

Enhanced Communication – An ICT Based Strategy for Small and Medium

Enterprises, Proceedings of the CIB World Building Congress 2007, Cape

Town, South Africa, May, 2007.

Ahuja, V., Yang, J. and Shankar, R., 2006. Strategic Use of ICT for Construction

Organisations - Requirements and Implementation Issues, Proceedings of

INCITE / ITCSED 2006 Conference, Organized by Construction Industry

Development Council India and Glasgow Caledonian University, November

2006, New Delhi, India, 1, pp.235-250.

Ahuja. V., Yang, J. and Shankar, R., 2006. Web Based Communication for

Construction Projec t Management, Proceedings of the World Conference on

Accelerating Excellence in the Built Environment, Birmingham, UK, October,

2006.

Yang, J. and Ahuja, V., 2006. Communication Protocol for Building Project

Management - ICT Enhanced Approaches for the Indian Building Practice,

Proceedings of the CIB W089 Conference: BEAR 2006, Hong Kong, China,

April, 2006.

Ahuja. V. and Yang, J., 2005. Towards ‘IT’ Enabled Supply Chain Communication

in Construction Project Management, In Ribeiro, F.L., Love, P.E.D., Davidson,

C.H., Egbu, C.O. and Dimitrijevic, B. Ed. Proceedings of CIB Conference on

Information and Knowledge Management in Global Economy, Lisbon,

Portugal, 1, pp.289-302.

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Chapter 1: Introduction

CHAPTER 1

INTRODUCTION 1.1 Research Background

1.1.1 Building Project Management and ICT

Building construction projects involve many stakeholders or agencies at all the stages

of the projects from design to construction and for each project the supply chain is

different. Projects are managed by designated Project Managers, Architects,

Contractors on behalf of the Client or by the Clients themselves depending upon the

contract and the project type. Project Managers are required to facilitate the

integration of work of all the agencies and project team organizations are

geographically separated beyond national boundaries or in the context of large

countries like India, within the national boundaries. Also, there is increased demand

to complete the projects within estimated time, cost and as per the specified quality.

One of the building industry’s answers to increased demands is to make better use of

information and knowledge that is generated in all stages of development because

communication or data handling often takes about 75% to 90% of a project

manager’s time in the construction industry (Fisher and Yin 1992; Alshawi and

Ingirige 2002). Also, two-thirds of the construction problems are caused by

inadequate communication and exchange of information and data, where 85% of

commonly associated problems are process related and not product related (Smit et

al. 2005). The key to project information management consists of the information

flows associated with inter-organizational communication (Stewart et al. 2005) and

the effectiveness of the project manager to communicate, evaluate and feedback to

the rest of the project team during each stage of the project life -cycle determines how

efficiently the project’s goals will be achieved (Alshawi and Ingirige 2002). Thus,

there is a requirement of a system that provides; shared project information, analysis

tools to analyze the information, a collaborative infrastructure to handle the flow of

information, a multi device access to the pertaining information and a system that

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ensures the persistence of the underlying information among the participants (Pena-

Mora and Dwivedi 2002).

Collection, analysis and real time communication of information is essential for the

quick detection of time, cost, scope and quality deviations from planned performance

and timely decision making for responding to problems, disputes and deviations

detected from the planned performance. At present, the communication problem

between the team members is often a cause for project delay, expensive reworking

and building defects (Huang et al. 2002) and with traditional tools of communication,

the project managers often lose the ability of timely change management. Required

communication can be achieved by using IT for effective data management and

information communication or by using Information Communication Technologies

(ICT).

ICT provides opportunities for real time access of information to all and improves

coordination and collaboration between project team members. Benefits of ICT

adoption include an increase in the quality of documents and speed of work; better

financial control and communications, and simpler and faster access to common data

as well as a decrease in documentation errors (Nitithamyong and Skibniewski 2006).

ICT is required not only to free up project managers for more decision making tasks

but also to deliver the required levels of ‘consistency and reliability’ of information

in the construction supply chains because use of incorrect data can compromise the

scheduled completion of a project and lead to wastage of resources (Sturges and

Bates 2001).

1.1.2 ICT Adoption in the Construction Industry and Research Requirements

The construction industry has been slow in embracing IT tools and techniques and

compared to other sectors, available and often easily accessible technology is not

being utilized to the full. This is reflected both, in the literature and in practice (Opfer

1997; Egbu et al. 2001; Love et al. 2004). This is due to a number of historical,

industrial and market forces that perpetuate the industry’s culture, thus affecting the

extent of ICT adoption in day-to-day business processes (Baldwin et al. 1999).

Effective adoption or diffusion of ICT through organizations is required to be

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effectively managed to better prepare for future ICT applications adoption

(Peansupap and Walker 2005) and issues for slow adoption of ICT are required to be

studied. The issues can be categorized as technical, managerial, cultural and

socio/political due to differing perceptions of project team members. The

requirement is to match technological innovation with the perceived needs and

preparedness for change on the part of the industry (Weippert and Kajewski 2004).

ICT adoption research is a component of research dealing with IT adoption in the

construction industry. A review of the literature review indicates that IT research in

construction until now has predominantly had a technical rather than a managerial

focus such as investment justification, strategy and strategic information systems

planning (Love et al. 2004). Little consideration has been given to the ‘human

factors’ associated with IT exploitation, like issues of team working, culture and

motivation of the workforce to embrace IT for team working through different

approaches, including training and education (Egbu et al. 2002). But, in a technology

driven change of any kind, the technology itself is only one of the several inter-

related components that potentially ensure improved performance (Cabrera et al.

2001 cited in Weippert and Kajewski 2004). With respect to ICT, its implementation

will inevitably be unsuccessful if the organization’s culture is not properly aligned

with, and supportive of an overall business strategy (Schneider 2000 cited in

Weippert and Kajewski 2004). So, research should also consider strategic as well as

managerial issues (Back and Moreau 2000). It should become a business objective of

the construction industry and should give equal prominence to technology, people

and processes involved in construction projects. Only in such a scenario will it be

adopted by the industry as a whole.

(SMEs) as 97% of the organizations employ less than 20 persons, and can be

classified as Small and Medium enterprises (SMEs) (Katranuschkov et al. 2001). So,

the communication management research is required to address management and

communication processes adopted by SMEs. These issues can be addressed by global

research, but also require clear understanding of the management and communication

processes followed by SMEs of each distinct regional area or country.

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1.1.3 IT Enhanced communication protocols

‘Protocol’ is defined as an accepted behavior in a situation. IT enhanced

communication is a component of a computerized information system which

includes generating, coding, processing, storing and communicating information

(Chitkara 2001, p.529-550). Thus, IT enhanced communication protocols are

required to define accepted methods of conducting these processes. In a construction

project, all the supply chain members are brought together to achieve one main

objective i.e to develop and build a particular project (Villagarcia and Cardoso 1999)

to meet desirable goals and standards. At all stages of the project, information is

generated, stored and communicated by all the supply chain members. So, to have

effective communication, all the supply chain members should follow the accepted

methods or the communication protocols. Also, at any time, each construction

organization is involved in more than one project and is a part of more than one

supply chain (Dainty et al. 2001). This unique nature of the construction industry

necessitates that the communication protocols are adopted by the industry as a whole

and do not remain project specific. With the advent of ICT, communication protocols

that support the effective adoption of ICT by the whole industry are required to be

developed. As per McDonagh (1995) the potential of the new technologies including

IT would be fully realized and optimized only if frameworks or principles are

developed and adopted for comprehensive, integrated information systems which

permit consistency and ease of exchange of information be tween different users of

the same information in different combinations for different purposes and across the

whole range of projects and programs.

People, who are a part of different project team organizations, manage projects and

the project team organizations are a part of the construction industry (Fig. 1.1). In an

organization, adoption of ICT is primarily initiated by top management, but effective

adoption of ICT is still dependent on project managers who have the main

responsibility for managing the construction projects (Peansupap and Walker 2005).

So, the protocols have to address technical, managerial, social and cultural issues and

be implemented at the level of industry, organization and project or people.

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1.2 Research Problem, Aim and Objectives

Based on the discussed research background, the research problem is defined as

below:

Building project management requires collaboration and coordination between all the

project team organizations, which can be achieved by effective communication

management. When project team organizations are geographically separated, such

effective communication can be achieved by IT enabled communication or by ICT.

Construction industry has been slow in adopting ICT and research is required to

study the factors affecting ICT adoption for building project management and to

develop communication protocols to be adopted by the construction industry. But,

majority of the organizations in the construction industry are SMEs and research is

required to address the specific requirements and management and communication

processes followed by SMEs of each distinct regional area or country.

1.2.1 Research Aim

The Research Aim is to develop protocols for effective adoption of Information



The Oxford dictionary defines the word ‘effective’ as ‘producing the intended

result’. In the context of this research, effectiveness of ICT adoption can be assessed

INDUSTRY

ORGANIZATION

PEOPLE

Fig. 1.1 Relation between Industry, Organization and People

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by the extent to which ICT tools and technologies replace manual methods in the

information system supporting building project management processes. Research

would identify the critical success factors that can help SMEs overcome the

technical, managerial, social and cultural barriers for effective ICT adoption for

building project management i.e getting the intended results or maximum benefits of

ICT adoption in the industry. The research is in the context of the Indian construction

industry. As shown by the preliminary literature study conducted, the requirement is

to develop technical and managerial protocols to be adopted at industry, organization

and people/project levels so that in the industry, ICT becomes an integral part of the

building project management process. Such research requires an understanding of the

basic project management processes executed by SMEs in Indian Construction

Industry; method of communication adopted; perceived drivers, barriers and enablers

affecting ICT adoption and perceived benefits of ICT.

1.2.2 Research Objectives

Research Objectives in support of the Research Aim are discussed below:

i. To identify generic project management processes adopted by SMEs in India

for building project management.

ii. To identify the extent of Information communication technologies (ICT)

adopted by SMEs for building project management.

iii. To identify perceived barriers and associated enablers for IT enhanced

communication management by SMEs and to develop model for establishing

structural relationships amongst them.

iv. To assess perceived industry requirements driving adoption of ICT by SMEs.

v. To identify perceived benefits of ICT adoption.

vi. To identify factors other than perceived enablers, barriers, benefits and industry

drivers affecting adoption of ICT.

vii. To study the causal relationships between all the identified factors.

viii. To provide a framework for increasing effective ICT adoption for Building

Project Management and suggest method of validation of the framework.

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1.3 Research Overview

Research Aim and Objectives conceptualized the focus of this study, projecting

factors and issues that underpin effective ICT adoption by SMEs for building project

management. This section provides an overview of the research process. Research

methodology is described in detail in Chapter 3, which presents a description of the

research methods that addressed the issues related to this study.

The research endeavor was not to automate the current communication process, but

rather to align it for adoption of the unique capabilities of computers over those of

humans. As ICT adoption is to be based on the principle that technology adoption

should be business driven, ICT facilitated communication protocols should play a

part in and be integral with construction development phases and business processes.

Research Framework

A research framework helps to structure the research process into logical steps and

appropriate stages. The establishment of an action plan helps to guide and direct the

research so that there is a clear connection between all the stages, i.e formulation of

research aim and objectives, literature review, data collection and analysis and the

findings and conclusions identified in the course of the analysis. Fig. 1.2 provides an

overview of the research framework that encompasses the research processes, which

were applied and were suitable for this research.

The research process was supported at all stages by a detailed literature review and

study of conceptual as well as empirical literature. The literature was reviewed at

four separate stages in the research process. The first stage review was a preliminary

exploration of the communication system adopted for building project management,

structure of the construction industry and related issues that required consideration

and further study. Thus, it involved a review of the conceptual literature concerning

the concepts and theories and the empirical literature consisting of earlier studies,

which are similar to the one proposed. This material is presented mainly in Chapter 1

as an introduction to the research and led to the formulation of research problem and

objectives. The second stage of the review was conducted to study the research

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background in context of research objectives. This helped in identification of

research variables and research areas. It validated the research objectives. This part

of the literature review is presented in Chapter 2. The third stage of the literature

review was related to the study of research methodologies. It was an important stage

of literature study as only by using appropriate methodologies and methods of

research, applied with rigor, can the body of knowledge for construction be

established and advanced with confidence (Fellows and Liu 2003). This study led to

the formulation of research design and finalization of research methodology. This

part of the literature review is presented in Chapter 3 and subsequently discussed in

detail in related chapters. The fourth stage of the literature review or advanced

literature review was conducted after the questionnaire survey. It helped in the

formulation of research construct for the semi-structured interview survey and case

studies analysis and was drawn upon for discussion and formulation of results. It is

presented intermittently from Chapter 7. The whole process of literature review

facilitates continuous knowledge building that is required for the research process.

The research design is concerned with making the research problem researchable by

setting up the study in a way that will produce specific answers to specific questions

(Oppenheim 1992). The Research Methodology was designed to achieve the research

objectives by way of including effective data collection, analysis and their validation

methodologies. The study required an understanding of the present status of ICT

adoption for building project management by SMEs, measure of identified factors

affecting ICT adoption and causal relationships between these factors. Some of the

factors could be measured quantitatively, but some factors like human or cultural

factors required qualitative assessment. Thus, the research methodology divided the

research into quantitative and qualitative research. Data for quantitative analysis was

collected through a questionnaire survey. The organizations that were included in the

survey sample, were either managing building projects after being appointed as

Project Managers or had the authority to manage their projects if a Project Manager

had not been appointed formally. Therefore three groups of organizations were

included in the sample: builders including contractors who construct and manage

their own projects; project management consultancy organizations which are

formally appointed as project managers on building projects and architectural

organizations which manage small to medium size building projects since for

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majority of such projects, project managers are not formally appointed. Interpretive

structural modeling was used to assess the importance of perceived benefits and their

driving power and dependence on other benefits. Quantitative analysis was

conducted through empirical analysis of data using Structural Equation Modeling

and other parametric and non-parametric statistical analysis tools. A semi-structured

interview survey was conducted at the organization level leading to quantitative

analysis of data including Data Envelopment Analysis and knowledge enhancement

through qualitative analysis. Case studies were conducted at organization and project

levels and analyzed through SAP-LAP analysis forming the qualitative component of

research.

Str

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odel

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Ana

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Literature Review (Stage 3)

Fig. 1.2 Research Overview

Research Aim

Research Objectives


Research Hypotheses

Questionnaire for the Survey

Questionnaire Survey (industry level)

Interpretive Structural

Modeling Analysis


Research Methodology


Semi-structured Interview Survey (organization level)

Discussion and Results Formulation

Benchmarking Framework Development and Analysis incl. Data Envelopment Analysis

Case Studies (organization and project levels)

SAP-LAP Analysis

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1.4 Delimitation of Scope

This section helps to identify a planned, justified scope of the study beyond which

generalization of the results was not intended. The identified delimitations are

additional to the limitations and key assumptions. ‘Delimitations’ are within the

control of the researcher and ‘limitations’ are not. Limitations caused by the methods

used are identified and explained in Chapter 9 as summary of all the limitations that

became evident throughout the course of the study. Key assumptions are described in

relevant sections.

The identified delimitations are discussed below:

• The research is conducted for building project management and data is

collected from organizations responsible for the management of building

projects. The results could be generalized for heavy civil construction, but

after due consideration of the characteristics of supply chain issues, the size

of participating organizations, management procedures and contract

conditions relevant for heavy civil construction.

• The research is conducted from the perspective of Small and Medium

Enterprises (SMEs). The results can be generalized for larger organizations,

but some of the identified factors affecting ICT adoption for building project

management might not be relevant for large organizations.

• Research data was collected from the Indian construction industry and the

results are applicable for India. However, these results can be generalized for

other countries after studying the extent and characteristics of similarities

between the construction industries of these countries.

• Suggested communication protocols are arrived at after studying technical,

managerial and social/cultural factors affecting ICT adoption for building

project management. But, the technical issues are studied in terms of the

applicability, usage and standardization of features and not with respect to

development of technical features.

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1.5 Outline of the Thesis

The chapters in this thesis are so structured that each chapter can be read and

understood autonomously. They are presented sequentially as an integral part of the

whole thesis with relevant referencing and linking information to the preceding and

succeeding chapters. Each chapter encapsulates elements of the design process that

satisfy the aim and objectives of this research and demonstrates an understanding and

appreciation of research processes, methodologies, analysis, writing up, discussion

and summarization of results based on analysis and acquired knowledge. Each

chapter starts with an introduction and ends with the summary of research discussed

in the chapter. In each chapter intermediate results or issues that are studied in

subsequent chapter are shown in a highlighted box.

Chapter 1 introduces the research background related to the importance of effective

communication for building project management and ICT adoption to achieve this.

Based on this research background, the research problem, aim and objectives are

formulated. This chapter also presents a brief overview of the research framework

and research scope.

Chapter 2 presents a review of the literature related to ICT adoption for building

project management, characteristics and specific requirements of SMEs and the

characteristics of the Indian Construction Industry. Factors affecting ICT adoption

have been identified at the level of industry, organization and people. The study of

global research conducte d in this area helped in the identification of the gap in

literature and research areas.

Chapter 3 provides discussions on the processes by which the research objectives

are achieved. It examines in detail the issues pertaining to the research design and

methodology, data collection and analysis methods, key research activities and

validation methods. Research hypotheses are formulated and after discussion about

research methodology, the framework for synthesis of the research components and

results formulation is discussed.

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Chapter 4 presents Interpretive Structural Modeling (ISM) analysis of the

relationship between the perceived benefits of adopting ICT for building project

management. Analysis results identify the dependence and driving power of each

benefit with respect to other benefits. A developed ISM model is then presented and

additional hypotheses are formulated.

Chapter 5 presents empirical analysis of data collected through the questionnaire

survey. Analysis is conducted through parametric and non-parametric statistical

techniques. Hypotheses are tested, discussion on perception based data is presented

and the analysis is summarized.

Chapter 6 presents a structural model of causal relationships between quantifiable

factors affecting ICT adoption for building project management, derived from

‘Hypotheses of causal relationships’. This structural model is tested through

Structural Equation Modeling (SEM) technique and the final model is presented.

Chapter 7 presents a framework for benchmarking ICT adoption for building project

management. It further discusses finalization and validation of the framework

through semi-structured interviews conducted at the organization level in three

organizations which had also responded for the questionnaire survey. It includes

measurement of efficiency of organizations in implementing their strategies for ICT

adoption. It is conducted through Data Envelopment Analysis (DEA) technique. This

chapter also discusses case studies of these three organizations conducted at

organization and project levels. Case studies are analyzed through SAP-LAP analysis

and social, cultural and behavioral factors affecting ICT adoption are studied.

Chapter 8 synthesizes the results of research studies conducted for achieving the

research aim and objectives. The results or the IT enhanced communication protocols

are discussed as a generic framework of a ‘Strategic Model for Enhancing ICT

Diffusion in Building Projects’.

Chapter 9 summarizes the research study. It presents a summary of findings,

significant research contributions, implications of research at the level of industry,

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organization and people and also discusses the limitations of the research study. It

also identifies future research scope emanating from the research study conducted.

1.6 Summary

This chapter discussed the basic premise for the research and the thesis. It first

introduced the research background, which helped in the identification of the

research problem. The research aim and objectives were established. An overview of

the research process was briefly discussed and the research scope was identified. An

outline of the thesis structure was also presented. This chapter leads to the detailed

discussion of the research process, with the next chapter presenting the literature

review.

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Chapter 2: Literature Review

CHAPTER 2

LITERATURE REVIEW 2.1 Introduction

The construction industry is a data based and information dependent industry. The

amount of information generated and exchanged during all the stages of a project can

be substantial (McIntosh and Sloan 2001) and in various formats: drawings, contract

documents, analysis results, planning schedules, photographs, reports. Further, the

project participants are changed with every project and the information generated by

many sources, at many levels of abstraction and detail, and retained by the creator of

that information contributes to fragmentation of the industry (Smit et al. 2005).

Construction projects involve large capital investments, multi-disciplines, widely

dispersed project participants, tighter schedules, and stringent quality standards and

these factors coupled with high-speed developments in Information and

Communication Technology (ICT) have influenced the project management

practices to take a new turn (Alshawi and Ingirige 2002). But, the literature survey

and the study of the construction industry reflect that the available technology is not

being utilized to its full potential (Egbu et al. 2001). This can be achieved by giving

careful consideration to the human touch (Weippert and Kajewski 2004) i.e. cultural

issues and strategic adoption of ICT in the industry.

In construction industry, majority of the construction organizations can be

categorized as Small and Medium enterprises (SMEs) and the communication

management research is required to address management and communication

processes adopted by SMEs. Also, by virtue of the number of organizations, greatest

strategic scope exists at this level (ed. Betts 1999, p. 58). Thus, strategic adoption of

ICT by the construction industry is defined by the strategic and operational

requirements of SMEs. These issues can be addressed by global research, but also

require clear understanding of the management and communication processes

followed by the SMEs of each distinct regional area or country.

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2.2 Construction Information and ICT

Information in a construction organization can be grouped under three categories:

• Information required for managing internal operations of the organization.

• Information required for assessing the construction industry, organization’s

position in the industry and the policy decisions required for future direction.

• Information required for managing construction projects.

For the first category of information, ICT is required to integrate the communication

between all departments or engineering groups, branch offices or organizational sub-

units and levels within the organizations.

For the second category of information, ICT is required to bring agility into the

information system. A constant flow of information from internal and external

sources allows informed decision making and improves the environmental scanning

and the co-ordination of a response (Retik and Langford 2001).

The third category of information is generated due to the communication between the

organizations and the multiple agencies which are a part of the project team. Project

information is usually considered as the processed and presented data in a given

situation, and is the data that enables effective action (Marsh and Flanagan 2000

cited in Smit et al. 2005).

The significance of the scale of project information management and the requirement

to adopt ICT in projects can be understood by the following information reported in

an Australian Government report: “A $10 million project with monthly cash-flows of

$500,000 might have as many as 50 contracts, 5 different consultants, 200 tenders,

600 final drawings, 3,000 amended drawings, 150 contract variations, 600 site

instructions, and 6 meetings per week” (Fujitsu Center Report 1998 cited in Weippert

et al. 2002).

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2.3 ICT and Building Project Management

In a building project, various stakeholders are involved at all the stages and project

managers are required to integrate efforts of all the stakeholders.

The Egan report stresses the requirement for project managers to integrate the

projects’ phases (from conception to final delivery) leading to performance

improvement (Alshawi and Ingirige 2002). Intense integration of alliance partners

requires excellence in communication at all levels, i.e. at Application level, System

level and Business level or Industry level (Fischer and Froese 1996; Alshawi and

Ingirige 2002; Walker et al. 2002). As per Walker et al. (2002) this generally requires

a quantum leap in the adoption of shared IT systems and information processing

integration. Thus, individual information systems developed by individual functional

managers or construction managers are required to be integrated for a project.

Integration strategies on the construction projects include managerial and technical

strategies. Technical integration focuses on workplace technology to improve

integration, particularly computer-integrated construction (CIC), which strives to

share the information among computer applications (Fischer and Froese 1996). For

managerial integration, Internet and Intranet related Computer Supported

Collaborative Work (CSCW) applications and especially Web-related applications

are one of the major concerns of CSCW research (Zhu et al. 2001). Study of the

literature identifie s that there is research being conducted with respect to

information/communication management to enhance collaborative project

management on construction projects (Rezgui et al. 1998; Construct IT for Business

Report 2000b; O’Brien, 2000; Pena -Mora and Dwivedi 2002).

The collaboration among the diverse participants in a project is essentially measured

by how effectively the communication channels were managed. The effectiveness of

the project manager to communicate, evaluate and feedback to the rest of the project

team during each stage of the life cycle determines how efficiently the project’s goals

will be achieved (Alshawi and Ingirige 2002). A Project Manager managing multiple

projects typically shares resources with team members working on many projects

over a shorter time. In such a situation, the key management issues could be resolved

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by good communication management (Haugan, 2002, p.12-18). Also, in this scenario

it is essential not only to support the communication processes within a project, but

also to consider the multi-project work and the individual requirements of the players

as well (Katranuschkov et al. 2001). The communication system should be:

Sufficiently flexible so that it can be modified to suit the unique requirements of the

individual project managers; Adaptable to many different projects; and Adaptable to

differing customer information requirements.

Research has highlighted the importance of effective communication for the success

of a project (Thomas et al. 1998; Tam 1999). It was concluded in a study that the top

thirty potential problems contributing to poor project performance could be classified

under five categories, out of which communication problems were listed as the third

category and all the five categories involve communications to some extent (Thomas

et al. 1998).

The time delays and increased cost of construction projects can be traced back to

poor coordination caused by inadequate information, insufficient, inappropriate,

inaccurate, inconsistent, or late information or a combination of them all (Tam 1999).

Communication has also been linked to team effectiveness, the integration of work

units across organizational levels, characteristics of effective supervision, job

satisfaction, and overall organizational effectiveness (Green 2001).

The extensive physical distance between project participants, extending over national

boundaries is one of the main causes leading to delays in decision-making (Deng et

al. 2001 cited in Alshawi and Ingirige 2002). In such a scenario, communication

problems, ranging from delays to distortion of messages, impose strains on project

management in construction (Alshawi and Ingirige 2002).

In the construction industry, supply chains are typically formed by all the project

team organizations. SMEs occupy a critical role in these supply chains and given the

number of specialist firms operating within the construction industry, there are

considerable challenges in terms of improving project performance through better

supplier integration and ensuring process conformity and alignment (Dainty et al.

2001). Alshawi and Ingirige (2002) identified that communication often takes about

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75% to 90% of a project manager’s time in the construction industry and computer

based systems are required not only to free up the managers for more decision-

making tasks but also to deliver the required levels of ‘consistency and reliability’ of

information in the supply chains.

The specific characteristics of Supply Chain communication management for

building projects can be summarized as under (Ahuja and Yang 2005):

• The total information structure is required to be integrated in terms of

generation and flow of information and associated decision-making.

• Throughout the project lifecycle, team organizations are required to obtain

real time information, as they are required to coordinate and collaborate for

project execution. Availability of real time information also helps in change

management, which is an intrinsic part of construction projects.

• To achieve integrated information processing, there should be an automated

flow of information between all the software used by project team

organizations. Appropriate categorization of information and the streamlining

of reporting requirements is necessary.

• At various points in the supply chain, information is collected from various

team organizations and then collated and processed for shared use.

Standardization of data handling processes as well as project information is

required to ensure maximum efficiency.

Adoption of ‘IT enhanced communication’ or ‘Information Communication

Technologies’ (ICT) can help in achieving required communication in building

projects. Jaafari and Manivong (1998) summarize the research in this area by stating

that effective implementation of ICT within projects, as well as the entire industry,

would improve the communication processes by an order of magnitude, and would

thus benefit the delivery of all the phases and functions on projects.

2.4 ICT Tools and Technologies

ICT is being adopted for building project management. Internet is the worldwide

system for exchanging and distributing free-format information and is regarded as an

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ideal platform for building up Information Systems (Smit et al. 2005). It has evolved

from being a scientific ne twork only, to a platform that is enabling a new generation

of business (Li et al. 2003a) or e-business that includes electronic project information

exchange, e-commerce and e-tendering (Construct IT for Business Report 2000b) .

Internet and its object-oriented client/server applications can be explored in various

formats for the communication purposes. Internet is also increasingly being adopted

for project management within the construction industry and has shown to help in

timely, well-integrated and effective project delivery (Construct IT for Business

Report 2000b).

Internet as the communication platform facilitates speedy transmission of

information and also saves money in communication with overseas construction sites

through the computer network. The system offers many benefits such as improved

efficiency, better management and decision-making and enhanced performance of

construction organizations (Tam 1999). Common Internet services or shared use of

common databases can be utilized for information sharing (Construct IT for Business

Report 2000a). Thus, Internet helps to communicate information more effectively

during the construction process.

Web-based applications greatly help in solving the problems caused by geographic

fragmentation. As cited by Zhu et al. (2001), in reality, the Internet and Web-related

technologies penetrated into the daily operation of project construction in the early

and mid 1990s (Wright 1993; Setzer 1994; Angelo 1995; Shearer 1995 cited in Zhu

et al. 2001). Using a web-based database as a centralized repository of project

information has several distinct advantages including: Reduced manual distribution

costs; Integration of project information; Simple management of access rights;

Document storage & archiving; Continuous access to project information; and

Minimal software requirement (Construct IT for Business Report 2000b). Integrating

organization database and world wide web (www) functions, supports the decision-

makers in conducting long-distance evaluations at various project sites and upgrades

the effect and efficiency of the decision-making process (Hsueh et al. 2007).

The project web sites hold the promise of promoting truly collaborative work

approaches, and offering an open and non-hierarchical approach to managing project

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information (O’Brien 2000). Combining 4D visualization with web-based

information management facilitates dispersed project team partners to make

collaborative decisions for construction planning and scheduling (Kang et al. 2007).

Researchers have identified twelve critical factors affecting performance of web

based project management systems as: project type, project duration, Internet access

availability, type of Internet connection, level of internal support, ability of project

managers, usage frequency of advanced features, level of support provided by a

service provider, functionality and reliability of the web based system, data security

and reliability, external integration ability of the system and the unique

characteristics of the organization using the system (Nitithamyong and Skibniewski

2007). Supply chain software are also evolving towards Internet applications that

communicate with the Enterprise Resource Planning systems (Green 2001). Internet

has also provided a rich environment for deve loping ‘e-commerce’ applications in

construction and among the different types of e-commerce, business-to-business

(B2B) is the most widely used (Li et al. 2003a). For e-commerce, Internet can host a

domain – specific search tool specialised in retrieving product-related online

information (Lin and Soibelman 2007). Researchers have also discussed web based

GIS systems for e -commerce (Li et al. 2003b).

Videoconferencing combines a simple way to hold meetings and share documents

live over the Internet, with the ability to view and annotate documents, drawings and

models and to share applications. Videoconferencing dramatically improves the

efficiency, productivity and accountability within a construction organization (Sahai

2004). Tools providing services of groupware, remote access, file sharing and

whiteboard discussions can be used individually or together, to provide customized

solutions for design coordination and site-to-office communication.

Intranets aid internal organizational collaboration. The role of Intranets has changed

significantly from a passive role of providing organization information to its

employees to a more dynamic role to share and capture knowledge and some

organizations leverage them as tools for achieving sustainable competitive advantage

(Ingirige and Sexton 2007). Extranets promote project collaboration, team working

and e-commerce. They also enable users to red line drawings and control work

through auditable paper trails (Tayeh and Gil 2007). Both help in standardization of

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the communication processes and improve data flows (Construct IT for Business

Report 2000a). Timeliness, accuracy and multi-locational availability of information

and formal flexibility are the defining elements of improved information quality

enabled by EDM technologies (Back and Bell 1995).

Using a 3D model for more than a visual study allows the development team to gain

strategic insights, minimize cost and schedule risk, improve supply chain

management and improve constructability. The visual presentation of complex

information coming from various disciplines permits more time at project meetings

to be spent on solving problems and making decisions (Henderson 2002). Virtual

Reality is an enhanced communication tool, which conveys design ideas and design

problems to all the members of the team more effectively (Koh et al. 2002). It allows

planners to intuitively interact with the virtual environment and objects as if they

were real by immersing them in a 3D computer-generated simulation and facilitates

the evaluation of different scenarios with limited expense and effort (Li et al. 2003c).

‘nD modelling’ approach is also being utilised. It refers to information about building

projects that includes 3 dimensional geometry (3D), plus the additional “dimensions”

of time, cost, organizations etc. (an additional “nD”). nD modelling tools are a series

of multi-disciplinary ICT based design and analysis applications that access an nD

model through an interoperable standard (Construct IT Initiative Report 2003).

Materials tracking system called Radio Frequency Identification Device (RFID)

couples radio frequency identification technology with highly miniaturized chips that

enable materials to be identified and tracked at any point along the supply chain. Li

et al. (2005) have studied application of an integrated Global Positioning System

(GPS) and Geographical Information System (GIS) technology to the reduction of

construction waste. The study is developed from automatic data capture system such

as the barcoding system for construction material and equipment (M&E)

management onsite, whilst the integrated GPS and GIS technology is combined to

the M&E system based on the Wide Area Network (WAN).

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2.5 Small and Medium Enterprises (SMEs) and the Indian Construction

Industry

The construction industry predominantly consists of SMEs. It is a heterogeneous

sector encompassing small, unorganized enterprises as well as modern and more

organized ones.

2.5.1 Definition of SMEs

The small and medium enterprises, both in size and shape, are not uniform across the

globe. There is no generally agreed definition of SMEs (ASEAN Report 1997;

University of Strathclyde Library Services Report 2005). “The best description of the

key characteristics of a small firm remains that describe d by the Bolton Committee in

its 1971 Report on the Small Firms. This stated that a small firm is an independent

business, managed by its owner or part-owners and having a small market share. It

recognised that size is relevant to sector i.e. a firm of a given size could be small in

relation to one sector where the market is large and there are many competitors;

whereas a firm of similar proportions could be considered large in another sector

with fewer players and/or generally smaller firms within it. Similarly, it recognised

that it may be more appropriate to define size by the number of employees in some

sectors but more appropriate to use turnover in others” (DTI Report 2005). Similar

concept is utilised in USA and as per their classification, small orga nizations of most

general and heavy construction industries have annual receipts of $28.5 million or

less each (University of Strathclyde Library Services Report 2005).

For statistical purposes, the Department of Trade and Industry of UK usually uses the

following definitions: small firm: 0 - 49 employees; medium firm: 50 - 249

employees; large firm: 250 employees or more (DTI Report 2005).

In the ASEAN region few informal definitions are observed. In Thailand for

example, various administrative organizations classify SMEs based on the measure

of fixed assets, registered capital, sales or number of employees (ASEAN Report

1997). The guidelines of Infocomm Development authority of Singapore define

SMEs as entities with: fixed assets less than S$15 million; and, number of full time

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employees less than 200. The “Very small” SMEs are on the lower spectrum of the

above criteria and constitute a very large number of SMEs (Huin 2004).

The definition adopted by the Indian government is based on the level of investment

in plant, machinery or other fixed assets whether held on an ownership, lease or hire

purchase basis. It seeks to keep in view the socio-economic environment in India,

where the capital is scarce and the labour is abundant. “However, a definition exists

only for small-scale industry and the medium enterprise definition is of more recent

origin. At present, a small-scale industrial unit is an industrial undertaking in which

the investment in plant and machinery does not exceed INR 10 million, except for

some trades. A comprehensive legislation, which would enable the paradigm shift

from small-scale industry to SMEs is under consideration in the parliament”

(Balasubramanian 2006). The organizations which are neither small nor large are

treated as medium enterprises.

In the literature, researchers have defined SMEs for construction industry. As per

Laufer and Tenah (1985) a medium sized firm is considered to be one handling 5-10

projects simultaneously, each representing a total of 200,000 t o 1 million man-hours.

Based on the number of employees, Dainty et al. (2001) define a small firm as

having 24 or less workers and a medium size firm as having 25-114 workers; Sturges

and Bates (2001) identify SMEs as having staff upto 299 and Love et al. (2004)

identify SMEs as employing less than 250 people.

2.5.2 SMEs and the construction Industry

In the construction industry, majority of the organizations can be categorized as

SMEs. While the US construction industry includes large companies, statistics

indicate that over two-thirds construction firms have less than five employees

(Halpin and Woodhead 1987 cited in Hegazy and Ersahin 2001). The majority of

these small firms are specialist subcontractors working with the general contractor

(Hegazy and Ersahin 2001). In Australia, there are approximately 158,000 firms and

the overwhelming majority are micro-businesses, employing an average of 2.3

people (DISR Report 1999 cited in Love et al. 2004). Dainty et al. (2001) report that

in UK construction industry, almost 97.6% firms employ 24 or less workers and can

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be categorized as small firms, almost 2% firms employ 25-114 workers and can be

categorized as medium size firms, and only about 0.4% firms employ 115 or more

workers. In Portugal, the small and medium enterprises were responsible for 72% of

the total output in 1998 (Ribeiro and Lopes 2002).

The construction organizations in India had their origins as start up ventures by

entrepreneurial individuals and over a period of time, they grew in size (Sreepuram

and Rao 2006). Still, most of the organizations are SMEs and

proprietary/individualistic in nature with 90% of the total construction work being

executed by them (Nehru 2001). Moreover, Indian private companies are wary of

forming consortiums (Mejie and Punia 2004), and it restricts size of these

organizations.

Infrastructure projects require large investments and project teams from contractors

and other project team organizations. Thus it is assumed that on such projects large

organizations are important part of the project teams, but on the building projects,

majority of the project team organizations are SMEs.

2.5.3 Characteristics and Specific Requirements of SMEs

Small and medium-sized enterprises are socially and economically important as the

majority of the workforce is employed by SMEs (University of Strathclyde Library

Services Report 2005). A huge pool of SMEs exists to service the huge and fairly

large enterprises respectively or to provide specialty or outsourcing services to these

corporations (Huin 2004). There is a growing recognition worldwide that the SMEs

have an important role to play in the present context due to their greater resource-use

efficiency, capacity for employment generation, technological innovation, promoting

inter-sectoral linkages and raising exports. They help in developing entrepreneurial

skills and innovation (Enterprise and Industry Report 2005) and their locational

flexibility is also an important advantage in reducing the regional imbalances.

The SMEs do not function as a collection of formal structural departments and their

requirements including operating requirements, logistics fulfillment and the financial

capabilities are vastly different from those of the large organizations, leading to the

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requirement of a closer understanding of their strategic and operational requirements

(Huin 2004).

“The CEO of an SME is involved in most of the strategic decisions and major

operational decision-making. At the middle level there are two distinct groups of

direct operational managers, the professionals and ‘upgraders’. Majority of the latter

group managers have years of related work experience and intimate knowledge of

the operational tasks, sometimes across different departments in the organization.

This knowledge is very useful to the SMEs as it allows cross-checking and network-

decision-making. At the execution level there are the professionals who are usually

IT literate (e.g., the planners, buyers, production supervisors etc.)” (Huin 2004).

Thus, in the SMEs, strategic planning for ICT adoption would be done at the top or

middle level, but, it would be supported, executed and defined by the ICT

capabilities of the staff at the execution level. In a survey, 25 of the 30 SMEs

reported staff turnover rate exceeding 20%. This high turnover rate adversely

impacts how SMEs manage their labor resource (Huin 2004). It also impacts the

level of ICT usage in the SMEs.

One of the most important issues that hinders the growth of SMEs in a globalised

scenario is that of access to appropriate technology when technology upgradation is

the key to facing global competition (Balsubramanian 2006). It is easier for large

firms to be involved in the development and adoption of the emerging technology

(Froese 1996) , whereas SMEs have difficulty in dedicating resources to research,

development and training (Acharya 2006). So, with respect to the SMEs, it is

necessary to develop means to get the information about innovations out rapidly and

in a form that will interest the potentially concerned decision makers. It has been

discussed that there has to be a link between any technology watch service and the

deep knowledge of the ‘client’ SME (Davidson 2001).

The projects can require involvement of a great number of small and large

enterprises with varying collaborations (Goodman and Chinowsky 2000). Larger

organizations view the contract organizations as an extension of their facility and it is

usual for them to ensure that the operational procedures and quality standards of their

contract organizations are compatible with theirs (Huin 2004). So, when the SMEs

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are managing the projects as contract organizations, their ICT adoption is determined

by the requirements of large organizations. In the manufacturing industry, an SME

would primarily be an extension of a large organization as its contract organization.

But, in the construction industry, an SME may also be independently managing the

building projects. In such a situation, the extent of ICT adoption would be

determined by the ICT capability of the SME and its staff.

Decentralization of the information, the resources and the decision-making processes

is commonly found in SMEs and there are low levels of management structures in

SMEs (Huin 2004). So, they have to struggle hard to break the barrier of traditional

management and administration to enter the computerized era (Laufer and Tenah

1985). It cannot be expected that SMEs would have an Internet strategy or a person

with the required knowledge (Katranuschkov et al. 2001). Also, they cannot afford

the complicated conversion from paper to electronic processes, which often requires

expensive information exchange technology (Ribeiro and Lopes 2002). With respect

to subcontractors or SMEs, an information system should be easy to use, transparent

and low cost (Hegazy and Ersahin 2001). SMEs also seem to be risk averse regarding

IT investment due to the perceived budget constraints (Peansupap and Walker 2005)

and there is still a long way to go for ICT adoption by SMEs.

2.5.4 Indian Construction Industry

The Indian construction industry is an important part and second largest activity of

the Indian economy. Apart from its large size, it acts as a vanguard and sets pace for

the growth of all other sectors (Vaid 2000 cited in Ranadive and Gaikwad 2006). It

employs over 31 million people (Nehru, 2001) increasing at over 1 million per year

(Mejie and Punia 2004), contributes 5.2% of GDP and constitutes of 40% of the

investment in India (Ranadive and Gaikwad 2006).

There has been a substantial growth in the Indian construction industry. Mejie and

Punia (2004) report that in 5 years prior to 2004 (the period of reporting), India was

hovering between INR 30,000 million to 120,000 million in the global overseas

construction market. But, recently there has been a sudden growth to about INR

200,000 million. At the time of reporting, 167 export contracts (construction, turnkey

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and consultancy) valued at INR 200,000 million (approx. US$ 4445 million) were

under execution in 43 countries by 36 Indian companie s. Further growth is also being

observed. With the sudden growth in the construction activity in the country, most

of the organizations have substantial projects to execute. With globalization,

increasing competition and awareness of the clients, there is a requirement to deliver

projects successfully and to build up the organizations. Typically the senior

management of the organization is caught up in a conflict of building up the

organization for future requirements versus the current fulfillment of the contractual

obligations (Sreepuram and Rao 2006).

In the Indian construction industry, projects are primarily executed on the item rate

contract arrangement and contractors join the project team from the execution stage.

Contractors of major components of works like civil works, plumbing works,

electrical works, HVAC or mechanical works, interiors and other works like

installation of lifts, aluminium doors and windows, termite treatment, water filtration

and softening plant etc. have direct contract with the clients. Thus, communication

between clients and other agencies is also substantial.

The strengths of the Indian construction industry are (Mejie and Punia 2004): its

manpower strength including manpower with high level technical and management

skills, and construction experience of every type of construction in all types of

terrains and climates; government initiatives for providing financial incentives to

construction organizations; manufacturing of varied construction materials and

equipment in the country; agility and adaptability to the changing global construction

scenario and working with overseas organizations.

One of the identified weaknesses of the Indian construction industry is that it is not

seen as an IT savvy sector (Mejie and Punia 2004; Nehru 2001). It is felt that the

information age has done little to transform the SMEs in the construction industry as

IT benefits users in the automation of processes, systems, data collection – all of

which are issues faced by the larger organizations. The requirement is that

organizations should realize the true value of IT and of reengineering of traditional

systems of working (Ranadive and Gaikwad 2006). With respect to ICT, one of the

major barriers is that formal reporting is not practised in these organizations

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(Sreepuram and Rao 2006). The requirement is to have an industry level initiative for

studying the factors affecting present ICT adoption in the industry, and building up

the industry for future requirements. But, the literature review did not indicate any

such industry-wide initiative.

2.6 Characteristics of Global Research and Research in India

The initial research in the area of ICT adoption in the construction industry primarily

had a technical focus. Research was undertaken for development of open, high-level,

computer interpretable communication between project participants resulting in the

development of standard product models including the Standard for the Exchange of

Product data (STEP) (Luiten and Tolman 1997; Han et al. 1998) and the Industry

Foundation Classes (IFC) (Han et al. 1998); shared project models and object

oriented models were developed for storing and managing design documents and

information (Fisher and Froese 1996; Stumpf et al. 1996; Mokhtar et al. 1998) and

managing design changes (Hegazy et al. 2001) leading to the model based

approaches to information representation and structuring as a shift from the

document based approach to the model based approach (Rezgui and Cooper 1998);

integrated, networked working environments were developed for the wider business

processes of communication, cooperation, collaboration, information exchange,

triggering of activities (Platt 1996); and decision support systems were developed for

management functions (Yang 1997).

Tekes, the National Technology Agency of Finland conducted Vera program

addressing IT for the AEC/FM industries. The technological vision of the program

was centered on the integration of all AEC/FM information throughout the lifecycle

of the projects using information modeling standards – specifically the Industry

Foundation Classes (IFCs) and many issues related to the work processes and

services associated with the adoption of IFC related technology in practice. In an

evaluation report for the program, Froese (2002) identified that a strong and specific

technological vision is extremely beneficial in focusing and directing the research

and development efforts. If vision provides the direction for technology

development, perceived benefits of the new technology pr ovide the motivation for its

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adoption. However, with respect to ICT, the perceived benefits of its application are

defined qualitatively. Good quantitative data would go a long way towards the

justification of the use of the technology. Evaluation of benefits of use of a

technology is essential for the adoption of the technology. “Kiviniemi, the program

manager of Vera program also noted that the IFC technology is not the only

component of a collaborative information system. Enabling technologies and

specifications, an ICT infrastructure, software applications, processes, education,

people, and the development of various databases are all necessary parts of the

culture” (Henderson 2002).

By the start of the 21st century, the global research community identified that inspite

of the high level technical research in this area, ICT adoption by the construction

industry was slow as compared to the other industries (Egbu et al. 2001). Reasons for

the same were studied and it was realized that the ICT adoption approach should be

goal-centered and based on the premise that one must plan based on the objectives of

the system, not only on the technology available (Smith et al. 2001). In addition to

creating the technology itself, there is a requirement to create servic es and work

processes related to the new technology (Froese 2002). Internal systems for use of

IT have been developed in various agencies in the construction industry, but

information sharing between the agencies and joint utilization of this information are

a bottleneck (Kiviniemi 2001). The IT director of an organization stated: “We should

pay 90% attention to the organization and 10% to the technical side of IT” (ed. Betts

1999, p.211). In the construction industry where work is project centric and involves

multiple enterprises for each project, majority of which are SMEs, equal

consideration is required to be given to the technology, the process and the culture or

people (Egbu et al. 2001; Huang et al. 2002; Alshawi and Ingirige 2003). Further

research is required to identify ways to overcome industry related cultural ‘barriers’,

‘modifying’ traditional work ‘habits’ and improving procedures for ICT

implementation and application opportunities within the construction industry

(Weippert et al. 2003). Also, utilization of networking techniques is contingent upon

broad utilization of IT in the whole value chain (Kiviniemi 2001) or supply chain of

construction projects.

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In the evaluation report of the Vera program conducted by VTT of Finland, Froese

(2002) has noted that the development of new technology should be led by a vision

that has been developed for the development efforts and a high priority should be

placed on studies that provide qualitative evidence of the benefits of the technology.

Consequently, the research in previously focused technical areas has been taken

ahead (Katranuschkov et al. 2001; Yang and Peng 2001; Zhu et al. 2001; Tuncer et

al. 2002; Brilakis and Soibelman 2005) and new technical issues like real time

information capture (Akinci et al. 2006; Song et al. 2006), artificial intelligence (Al-

Jibouri and Mawdesley 2002), mobile computing (Ward et al. 2004; Kimoto et al.

2005; Reinhardt et al. 2005), 4D planning (Liston et al. 2001; Wang et al. 2004;

Chau et al. 2005), virtual reality (Li et al. 2003c; Savioja et al. 2003), networked

environments for present technology (Liston et al. 2001; O’Brien et al. 2002; Finne

2003; Nuntasunti and Bernold 2006), e-commerce (Li et al. 2003a,b) etc. are also

being studied.

Soft issues or management issues for effective implementation of ICT in the

construction industry are also being studied. Further sections critique significant

findings of research in these issues and identify and highlight the important variables.

Research in India

In India, the research has been conducted for IT adoption by the construction

industry, but literature review has not identified the research with focus on ICT for

the construction industry.

Table 2.1 chronologically lists some of the research papers discussing the research

conducted in India. These research papers show that the research in India is at a

nascent stage and also at individual levels.

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2.7 Strategic Adoption of ICT in the Construction Industry

‘Strategy for IT adoption’ for all functions of an organization defines the ‘Strategy

for ICT adoption’ by the organization, and ‘Information Strategy Plan’ of the

organization has to be supported by its strategic adoption of ICT (Fig. 2.1).

Strategy is derived from the organization’s vision. ‘Vision for ICT adoption’ is

defined as creating the context and direction for ICT adoption within the

organization. It creates common objective and approach across the organization

(Bunyan et al. 2002). ‘Strategic ICT adoption’ is defined as the process of planning

and coordinating ICT systems for medium to long term, to support its business aim

and objectives defined in the vision. The strategic plan is for a 3-5 years horizon

(Purba et al. 1995, p.33) and is detailed.

Information strategy planning deals with the whole ‘information resource’ of an

organization i.e. the information it generates and receives and the systems it uses to

do so. This includes basic raw data, information that has been analyzed and is used to

make decisions, and the systems and computer technologies that deliver the

Table 2.1: Research Papers Discussing Research Conducted in India for IT Adoption by the Construction Industry

Author Abstract Year

Nehru

The paper highlights the scope of e-commerce as a business medium and discusses its spread and advantages. It is discussed with respect to Indian construction industry.

2001

Appa Rao and Narasaiah

The report summarizes the results of a survey carried out to assess the use of computers and IT by the construction industry in India. The sample size was 22 organizations and survey was conducted in 2002.

2003

Dhargalkar and Joshi

The paper describes "ProMonitor", an MIS that is interfaced with a computer database. It is suggested that such real time data would help the project management consultancies immensely to identify the lapses in the execution of work and to take corrective measures during monitoring and control of the remaining work.

2003

Bhattacharya The paper discusses the role of IT in construction industry 2004

Kishore et al.

The paper discusses a methodology to estimate potential benefits of IT in construction industry. The methodology looks at direct cost savings.

2006

Ranadive and Gaikwad

The paper discusses a methodology to study relation between IT adoption and increase in productivity in construction organizations. The research is still to be carried out.

2006

Sreepuram and Rao

The paper articulates the requirement for building organizational capabilities in the construction industry coupled with IT infrastructure-building to face the competition from global sources and also to venture out into the global market place.

2006

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information i.e. ICT. It also examines how these systems relate to the organization’s

general business environment (Construct IT for Business Report 2000a).

Researchers have highlighted the requirement to align ‘Information strategy plan’

supported by ‘Strategic adoption of ICT’ with the business strategy of the

organization (Construct IT for Business Report 2000a; Leuven and Voordijk 2001;

Retik and Langford 2001, p.125-144). It helps in estimating cost of the new IT

systems and includes cost of hardware, software and support (Construct IT for

Business Report 2000). It also helps business managers to gain a greater

understanding of the potential of ICT and helps to improve their understanding of the

organization’s business requirements by the IT staff, thus enhancing the efficiency of

the system. It also ensures adequate consideration of those areas where technology

itself may be an underlying change agent (Purba et al. 1995). Consequently, it

supports and shapes an organization’s competitive strategy.

2.7.1 Requirement of Strategic Adoption of ICT by the Construction Industry

at the Level of Each Organization and at the Industry Level

Construction organizations have different departments or engineering groups and

researchers have highlighted that departmentally isolated approaches to the

technology implementation in construction organizations have often led to “islands

of automation” or “functional silos” in many of the present organizations (Back and

Moreau 2000). In such a scenario the users may be satisfied with their individual

STRATEGY FOR ‘IT’ ADOPTION IN ALL FUNCTIONS OF THE ORGANIZATION

Information Strategy Plan

Strategy for ‘ICT’ Adoption

Fig. 2.1 Relation of ‘Strategy for ICT Adoption’ with the other Strategies of the Organization

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systems. However, chaos arises when the users are required to share information

(Construct IT for Business Report 2000a). ICT can be adopted strategically, if the

organizations and industries can find ways of applying it to either improve individual

activities, or alter the linkages between them to make the overall value chain or value

system more efficient. Full efficiency will not be achieved through the adoption of

well designed but incompatible systems handling differing requirements and

purposes of each user (McDonagh 1995).

In the construction projects, data generated at each stage of the project is utilized at

all the successive stages upto the facilities management stage. Researchers have

highlighted the requirement to bridge the gap between design and planning stages of

projects (Yang and Lin 1998). Effective and seamless transfer of information

between all the stages and between project team agencies requires strategic adoption

of mutually compatible software, hardware and communication capabilities. It is

more relevant in the present scenario, since many of the technologies today are

dependent on the use and proper functioning of other technologies. For example, the

potential of an expert system is limited by the breadth and accuracy of the database

from which it draws information (Back and Moreau 2000).

In the context of the construction industry where inter-organization communication

is important, strategic ICT adoption is required at the industry level and

organizational strategies are required to be aligned with the industry wide strategy.

The project level strategies are required to be aligned with the organization level

strategy of the clients and the project management agencies. Industry wide strategic

ICT adoption would require the understanding, participation and support of all the

concerned professions, enterprises and government agencies. Such a national,

industry-wide approach is what is now being undertaken in the Construct IT

initiative in the UK, the Vera program in Finland, the CORENET project in

Singapore (ed. Betts 1999, p.124-131) and the CRC CI initiative in Australia.

The Construct IT initiative in UK was started in 1995 to improve competitive

performance of the UK construction industry by promoting research in the use of IT

in construction through an industry led network of major clients, consultants,

contractors, suppliers, IT and communications organizations and universities

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(Construct IT Report 1998). Objectives of the program include initiating master’s

level industry-oriented learning programs, coordinating research, promoting

innovation, continuous redefinition of an industry vision, forming links with similar

international initiatives and establishing best current practices (DOE 1995 cited in

Construct IT Report 1998).

The ‘Vera Technology Program’ was launched by Tekes, the National Technology

Agency of Finland, in 1997. The target of the program was to promote the

implementation of IT adoption and enabled networks and to make it possible to

manage the information flows during the entire life cycle of the buildings, so that the

project team members share project data instead of paper documents. In the Vera

project, construction processes and information systems were developed

simultaneously. The aim of the program was to achieve: improvement in return on

investments; improved quality and overall profitability of construction; and increased

construction exports (Vera Program Report 2000).

The CORENET project is the acronym for ‘Construction and Real Estate NETwork’

project of Singapore, commenced in 1993. Singapore Building and Construction

Authority drives the project in partnership with the relevant industry bodies. It is a

major IT initiative undertaken in Singapore to re-engineer and streamline the

business processes of the construction industry to integrate the fragmented work

processes of a building project life cycle. The aim was to achieve a quantum leap,

especially in the quality and productivity aspects. Since the commencement of the

CORENET national program, key IT initiatives have been identified and appropriate

incentive schemes including capital grants for IT development have been put in place

to help the industry adopt IT (Hua 2005).

The CRC CI initiative is a research and development program initiated by

‘Cooperative Research Center for Construction Innovation’ in Australia. Its vision is

to lead the Australian property and construction industry in collaboration and

innovation, with the three objectives of (Brewer et al. 2003):

• enhancing the contribution of long-term scientific and technological research

and innovation to Australia's sustainable economic and social development.

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• enhancing the collaboration between researchers, industry and government,

and improving efficiency in the use of intellectual and research resources.

• creating and commercially exploiting tools, technologies and management

systems to deliver innovative and sustainable constructed assets to further the

financial, environmental and social benefit to the construction industry and

the community.

Under this initiative, the research projects measuring ICT adoption in the

construction industry and studying factors for the effective adoption of ICT are being

undertaken (Brewer et al. 2003; Kajewski et al. 2004).

All these initiatives are industry led initiatives undertaken to combine research and

practice and aim to enhance sustained and effective adoption of IT/ICT in the

construction industry. Table 2.2 chronologically lists some more research papers

discussing such national level research initiatives.

2.7.2 Benchmarking a Strategic Tool

Measurement is one of the first steps in any improvement process (Lee et al. 2005).

So, to strategically increase effective adoption of ICT in the construction industry, a

system of evaluation of the ICT based Information Systems is required to be

developed. There is also a consensus among researchers and practitioners that ICT

related investments should be carefully justified, measured and controlled (Milis and

Mercken 2004) and a strong correlation exists between the control and measurement

of IS and higher effectiveness of IS, however measured (Shank and Govindarajan

1992 cited in Milis and Mercken, 2004). Researchers have serious doubts about the

efficacy of using traditional capital investment appraisal techniques for the appraisal

of ICT adoption and a multi-layer evaluation process is suggested (Milis and

Mercken 2004).

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Table 2.2: Research Papers Discussing National Level Research Initiatives Reference Initiative Howard et al. (1998)

The paper summarizes IT barometer survey, which compares results from Denmark, Finland and Sweden on the use of computer hardware, software and communications. A network linking national IT centers is planned to exchange experience and coordinate this work, so that there can be greater integration of systems between different types of organizations in construction, and within international projects.

Clark et al. (1999)

The paper follows an element of the research program of the Construct-IT Center of Excellence, a UK-based organization responsible for promoting the strategic awareness of IT within construction enterprises. The program planned to benchmark IT adoption within ten mission-critical business processes including supplier management and cost and change management.

Carter et al. (2001)

The paper presents a view on the application of ICTs to construction and typical contractual relationships within the industry, before introducing the eLEGAL project. eLEGAL is a European cooperative research and development project, which is focusing on legal conditions and contracts regarding ICT adoption in project business.

Howard and Petersen (2001)

The paper reports on a two year research project carried out by the IT byg group at BYG.DTU for the Danish government agencies Erhvervsfremmestyrelsen and By- og Bolig-ministeriet. The objectives of the project were to collect data on IT adoption by the PPB housing consortia, a development project to test out various innovations, to map communications between the partners, and compare IT adoption with their original proposals.

Froese (2002) Tekes, the National Technology Agency of Finland conducted Vera program addressing IT for the AEC/FM industries. The technological vision of the program was centered on the integration of all AEC/FM information throughout the lifecycle of projects using information modeling standards – specifically the Industry Foundation Classes (IFCs) and many issues related to the work processes and services associated with the adoption of IFC related technology in practice.

Mui et al. (2002) The paper describes a survey done to establish the actual level of Internet usage in the Malaysian construction industry. It also discusses perceived benefits and barriers for the same.

Svidt and Christiansson (2006)

The paper summarizes experiences from the process of implementation of ICT based systems for resource management in SMEs. The findings are derived from the Danish project 'IT at the Construction Site' started in 2003 and ended in May 2005. The project has involved a number of small to medium sized construction enterprises and institutions within the building domain as well as ICT tools providers.

In the multi-enterprise scenario of the construction industry, effective adoption of

ICT for building project management requires measurement and improvement of the

system in the total supply chain of the projects and in the whole industry but, to date,

a methodology has not been developed to examine the potential contributions of

information management strategies in reducing overall project schedules and cost

(Back and Moreau 2000).

Table 2.3 chronologically lists some more papers discussing international research in

formulating methodologies for evaluating information systems in the construction

industry.

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Table 2.3: Research Papers Discussing I nternational Research in Formulating Methodologies for Evaluating Information Systems in the Construction

Industry Authors Abstract Year

Back and Bell The paper discusses research that shows that time and cost process benefits attributable to EDM technologies are significant.

1995

Fowler and Walsh

The paper discusses through case studies the differing perceptions of various stakeholders regarding the success of information systems projects.

1999

Leuven and Voordijk

The paper discusses evaluation of ERP implementation in construction industry with reference to Nolan growth curve.

2001

Stewart and Mohamed

The paper looks at potential applications and benefits of using the Balanced Score Card as a framework to evaluate the performance improvement resulting from IT/IS implementation by a construction organization. To illustrate the application of the proposed framework, a project tier example is provided.

2001

Stewart and Mohamed

The paper builds upon the framework discussed by the authors in the earlier paper listed above. It investigates the interrelationship between the framework perspectives and indicators, in an attempt to validate the link between them. Using information collated from 82 professionals representing large construction contracting and project management organizations located within Australia, results from the study provide support for the proposed framework.

2004

Skibniewski and Zhang

The paper reviews IT investment evaluation methods and concludes that a single economic analytical method or a simple combination thereof is insufficient to justify or decline an investment in Web based Project Management. Authors put forward a multidimensional decision-making approach that the authors believe is closer to the style of decision-making in the construction business world.

2005

Yu et al.

The paper suggests an evaluation model for IS benefits in construction management processes. The model is based on the evaluation of IS implementation benefits at the construction management task level, and it is postulated that the benefits are composed of the effect and the possibility of IS implementation. 2006

Researchers have suggested balanced scorecard approach (Stewart and Mohamed

2001; Milis and Mercken 2004) and benchmarking as systems for the evaluation of

construction systems.

Lee et al. (2005) presented a benchmarking system developed by the Construction

Industry Institute (CII) for broad application in the construction industry; Ramirez et

al. (2004) have discussed a benchmarking system that has been recently established

in the Chilean construction industry by incorporating qualita tive management aspects

in addition to performance indicators; Love and Smith (2003) have proposed a

generic framework for benchmarking rework at the interfaces of a project’s life

cycle; Clark et al. (1999) have discussed benchmarking for studying the supplier

management system with respect to IT; Love et al. (2004) have reported a series of

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benchmark metrics for benefits, costs and risks of IT and posit that these metrics can

serve as a reference point for initiating benchmarking, which should form an integral

component of the IT evaluation and learning process; Brewer et al. (2003) have

discussed a study commissioned by CRC CI in Australia to study the development of

a benchmarking tool to measure ICT uptake in the construction industry.

2.7.2.1 Benchmarking Definition

Benchmarking is a formal method and as per Fong et al. (1998) some researchers

(Camp 1989a; Mittelstaedt 1992) have suggested that a systematic method would

lead to outstanding performance while other informal methods would not.

Benchmarking has been defined in literature with different perspectives. Table 2.4

lists in chronological order some definitions and salient features of benchmarking as

defined in the literature.

Table 2.4: Definitions and Salient Features of Benchmarking Reference Definition and Salient Features Construct IT Report (1998)

• Benchmarking is the means for identifying performance levels and provides the basis for continuous improvement.

• Benchmarking studies are used to reveal the gap in performance in one organizat ion, between different organizations and best practice.

• It is intended to lead an organization to identify and adopt improved business processes by identifying actions that are needed to match and exceed best practice.

• It forces issues out into the open so that they can be dealt with according to the goals of the organization.

Bendell et al. (1998) Benchmarking approach is one of prevention of errors and faults rather than of detection and correction.

Clark et al. (1999)

• Benchmarking methodologies are primarily a tool for organizational continuous improvement.

• Benchmarking is ‘an external focus on internal activities, functions or operations in order to achieve continuous improvement’ (Leibfried and McNair 1994).

• It is one of the responses to competitive threats and includes studying internal and external practices of efficient companies with a view to learning and implementing superior processes that will contribute to a strategic competitive advantage (Leibfried and McNair 1994).

• Benchmarking through objective competitor analysis allows companies to measure products or services against competitors and best-in-class companies in other industries.

Love and Smith (2003)

• Benchmarking can be viewed as an operational process of continuous learning and adaptation that results in development of an improved organization.

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Table 2.4 Continued

• Benchmarking focuses on the importance of understanding the tasks and activities in a process that produces an outcome and how improvements in the processes can take place (Schaffer 1992).

• A benchmark can be: anything taken or used as a point of reference or comparison; something that serves as a standard by which others may be observed or compared; anything or something that is comparatively measurable and a physiological or biological reference value against which performance is compared (Zairi 1996).

• Benchmarking is a suitable starting point for construction organizations embracing change and for learning, as it is a process that can be used to systematically acquire knowledge.

• For benchmarking to be effective at a project, at industry, or at competitive level, organizations should view it as a process of improvement rather than of exposing an organization’s weakness.

Costa et al. (2006) • Benchmarking is a systematic process of measuring and comparing an organization’s performance against that of the other similar organizations in key business activities. Then, lessons learned from other organizations are used to establish improvement targets and to promote changes in t he organization (KPI 2000; Barber 2004).

• Benchmarking adds value to performance measurement because it allows companies to compare their data; it also allows for better decision making based on these comparisons (Beatham et al. 2004).

• The general purpose of benchmarking and its function as an assessment process is to encourage continuous learning for both managers and organizations (Barber 2004).

• Benchmarking must be an integral part of the planning and ongoing process of improvement to ensure a focus on the external environment as well as to strengthen the use of factual information in developing plans (Camp 1995).

• Although the major focus of benchmarking is usually on planning and organizing, one of its main objectives is to introduce new ideas to an organization (Spendolini 1994).

• Benchmarking of managerial practices helps to accelerate and manage organizational changes by creating a culture of continuous improvement (Barber 2004).

• Benchmarking process can lead to benefits beyond productivity, if it is used for encouraging innovation.

These references help in summarizing benchmarking as a tool: to measure

mission-critical processes or the processes under study of an organization against

those of the other similar organizations in the same sector and similar sectors; to

establish a benchmark or a standard for comparison and help in continuous

improvement in the processes by helping organizations in measuring differences,

conducting objective competitor analysis, systematically acquiring knowledge,

improving productivity, introducing new ideas and encouraging innovation.

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The above definition of benchmarking indicates that benchmarking results in an

industry wide measurement and improvement of the benchmarked system, by

facilitating comparison between different organizations.

Researchers have classified benchmarking with different perspectives. Lewis and

Naim (1995) have identified four types of benchmarking: internal, competitive,

parallel industry and best practice (Clark et al. 1999). Fong et al. (1998) have

classified benchmarking as per the nature of referent, content of benchmarking and

purpose for the relationship (Fig. 2.2).

Internal benchmarking is a comparison between different operating divisions,

departments or business units of the orga nization where data is often readily

available and accessible.

Competitive or competitor benchmarking occurs between organizations within the

same industry sector that sell an identical or similar goods or service. It is quite

difficult to achieve, as the competitors may not divulge private knowledge or other

key productivity data (Fong et al. 1998). In this benchmarking, two factors with

Fig. 2.2: Classification of the Types of Benchmarking Sourced from (Fong et al. 1998)

halla

This figure is not available online. Please consult the hardcopy thesis available from the QUT Library

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respect to methodology and content of benchmarking define the success of the

process:

• It should be performed in partnership by a third party benchmarking agency

and the focus should be on organizations learning from each other’s practices

(Fong et al. 1998). Independence of the benchmarking agency from all the

participating organizations increases willingness of the organizations to be

included or interviewed for the benchmarking process (Clark et al. 1999).

• Benchmarking should be directed at technical or general managerial

processes so that the commercially sensitive information is unlikely to be

exposed (Construct IT report 1998).

Industry benchmarking is similar to competitor benchmarking, so is the generic or

global benchmarking (Cox et al. 1997 cited in Fong et al. 1998). Industry

benchmarking is different from competitor benchmarking because it involves more

number of benchmarking or comparison parties and may also include non-

competitors. Thus it is more feasible.

Generic or Parallel Industry benchmarking occurs between organizations from

different sectors that undertake a similar process of production or service (Clark et al.

1999). It also introduces an element of innovation in the benchmarking process.

Global benchmarking involves the comparison with an organization from a global

perspective (Watson 1993 cited in Fong et al. 1998) where geographical location of

the organizations extends beyond country boundaries.

Process benchmarking pertains to the discrete work processes and operating systems

(Bogan and English 1994) while performance benchmarking is concerned about

outcome characteristics, such as elements of price, speed, and reliability (Cox et al.

1997 cited in Fong et al. 1998). Functional benchmarking applies the process

benchmarking for the comparison of particular business functions among two or

more organizations (Camp 1989b cited in Fong et al. 1998).

Strategic benchmarking involves the assessment of organizational strategies, such as

the long-term development of organizational infrastructure, rather than key

operational practices (Bogan and English 1994 cited in Fong et al. 1998).

Benchmarking is likely to be competitive when an individual “benchmarking

organization” initiates it and it is likely to be collaborative when it is initiated by a

respected third-party agent (Fong et al. 1998). Collaborative benchmarking

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emphasizes the sharing of knowledge and conveys a learning atmosphere (Cox et al.

1997 cited in Fong et al. 1998).

Best practice benchmarking suggested by Lewis and Naim (1995) considers the

merits of a comparison with a particular market leader who is known to have an

exemplary process that is similar to the process under study (Clark et al. 1999).

While all of the operations of the process may not be totally transferable between

organizations due to different industry structures, there will often be important

lessons that can be learnt (Clark et al. 1999). Best practice benchmarking is called

innovation benchmarking by Davenport and Short (1990) as the target processes are

often borne out of innovative thinking and bold managerial implementation (Clark et

al. 1999).

As per Costa et al. (2006), a strategic performance measurement system for SMEs

must be very resource effective and should produce noticeable short-term results. In

addition, it must be dynamic and flexible enough to accommodate strategic changes,

since these organizations tend to experience sudden contingencies.

As per Bendell et al. (1998, p.163), all management and service areas are candidates

for benchmarking. Thus, a consistent ICT evaluation framework would allow

benchmarking ICT adoption for building project management by the SMEs. It can

provide organizations with the opportunity to document and review their business

processes so that the added value that the ICT adoption can provide is identified.

2.8 Factors Affecting ICT Adoption for Building Project Management

Peansupap and Walker (2005) state that effective ICT diffusion success could be

perceived in terms of factors that influence technology adoption and the way in

which successful adoption of technology by potential users could be sustained. They

have classified factors affecting ICT diffusion in an organization as static and

dynamic factors, where static factors like technological characteristics,

communication channel etc. fundamentally affect initial ICT diffusion and dynamic

factors like motivation, and training and technical support sustain ICT diffusion

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changes. These factors have been discussed by researchers and are studied and

discussed below.

2.8.1 Strategic Adoption and Diffusion of ICT

Rogers (1962) defines that the diffusion process occurs within a soc iety as a group

process whereas the adoption process pertains to an individual. To achieve ICT

diffusion at the industry level, strategic adoption of ICT is required at the

organization level and also strategic initiatives are required at the industry level.

At the industry level, research should include SMEs and support should also be

provided to SMEs for training in and adoption of the developed technology (Froese

2002). Organizations require a realistic and reliable knowledge base which is to be

transmitted in the organization at a fast pace and made easily and instantly available

to engineers/managers at all the levels (Pandit and Munshi 1999). However, SMEs

do not see justification in spending money on large databases in isolation and require

help from large organizations and government bodies for the same. Standardization

of information transfer is very important at the national as well as international levels

and can also be achieved by the industry level initiatives.

Effective adoption of ICT would be achieved if appropriate ICT tools and

technologies are adopted and work processes are adapted for use of the technology.

Thus following factors are required to be considered strategically at the organization

level for effective adoption of ICT:

• ICT development in an organization should be business driven and should

play a part in and be integral with construction activities and business

processes of the organization (Construct IT for Business Report 2000a). Thus

a construction organization’s ‘Strategy for ICT adoption’ should be aligned

with its business objectives.

• CEOs and top managers’ perceptions of the importance of IT, help to align IT

strategies and goals with those of the organization as a whole. Equally

important, it sends a strong signal throughout the company that IT is being

taken very seriously (Bawden and Blakeman 1990 cited in ed. Brandon and

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Betts 1995, p.21). Similarly CEOs, and top managers’ perceptions of the

importance of ICT adoption is also an important factor.

• Identification of the organizational changes required for effective adoption of

ICT (Froese 1996; Mitropoulos and Tatum 2000) and the measurement of

benefits accrued by its adoption (Mitropoulos and Tatum, 2000) are

important.

• Strategic communication at project level is important. As per Froese (2002),

to manage the information flow and to be able to develop integrated

information systems, it is necessary to agree on content, structure, format and

presentation of the data. These factors are required to be considered at the

project level.

• The project scope should require ICT adoption (Root and Thorpe 2001) as

technology improvement in the construction industry is usually driven by

necessity rather than by the desire to be at the cutting edge (Rivard 2000 cited

in Ranadive and Gaikwad 2006).

Table 2.5: Research Papers Discussing Strategic Adoption of ICT in the Construction Industry


Haniff and Kaka The paper discusses the use of a framework for development of a knowledge database for use within the construction industry.

2001

Ribeiro and Lopes The paper makes an analysis of the web based value chains in construction.

2002

Nitithamyong and Skibniewski

The paper identifies factors determining success or failure of web-based construction project management systems, particularly through the use of application service providers utilized by construction firms without in-house expertise to develop such systems for exclusive company use.

2004

Rebolj and Menzel

The paper stresses that effective adoption of mobile technologies strongly depends on appropriate adoption scenarios, embedding it in our work processes and integrating it into the existing IT-environments.

2004

Peansupap and Walker

The paper focuses on ICT diffusion at the actual implementation stage of construction projects.

2005

Andrews et al.

The paper proposes a framework, which can be used to analyze the potential of applying ICT for the implementation of new standards in the construction industry.

2006

Table 2.5 chronologically lists some more papers discussing the issue of strategic

ICT adoption.

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2.8.2 Cultural Factors

Effective implementation of ICT in the construction industry requires the study of

cultural issues. It has been reported that traditional practices and culture continue to

succeed in maintaining incapacity to use appropriate IT (Construct IT Initiative

Report 1998). The study is required to modify the working processes for increased

adoption of ICT. Cultural issues are required to be studied at the industry,

organization and project levels.

Culture is pervasive, not simply a variable that affects the organization, group or

team, but indistinguishable from these (Pepper, G.L. 1995 cited in Weippert and

Kajewski 2004). Every organization within the industry has its own unique culture,

sub-culture, character, nature and identity (Weippert and Kajewski 2004) and this

refers to the deeper level of basic assumptions, values, beliefs and practices that are

shared by most members of an organization. In a survey, it was found that high ICT

adoption by the organizations was influenced by an open discussion environment,

support from the colleagues and support from the supervisors (Peansupap and

Walker 2005). It is also reported that there is a tendency to accept electronic data

more readily than the written word, which is typically checked more thoroughly.

This is seen as a cultural problem, rather than a specific disadvantage of IT

(Construct IT Initiative Report 1998). Other researchers have also brought forward

these issues for further study.

The project culture is closely related to the organizational culture. It is defined by the

organizational design, structure and processes conducted in a particular context or

environment to achieve specific goals and objectives within a certain time frame and

budget allocation. These factors create a culture, which is unique to that project

although influenced by experiences from other similar projects (Cleland and Ireland

2002 cited in Tone 2005).

Recognizing the type of culture that exists in the organizations and the project

environments is particularly useful to enable the managers to determine the approach

and the strategies that facilitate interaction and communication (Tone 2005). Van

Oudenhoven (2001) claimed “that culture as found in the organizations within a

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country should partly reflect the national culture.” It would be the national culture of

that industry. When organizational culture is ‘weak’ and appears to have little

influence, workplace values and behavior provide a clear reflection of the national

culture and values (Tone 2005). Also, in the case of a ‘weak’ organizational culture,

changes in policies, rewards, tasks and structures are likely to “modify organizational

behavior and cause a cultural shift” (Weippert and Kajewski 2004).

Many organizations decide to change their existing culture, based on the requirement

to implement a strategically driven change, or due to a certain ‘crisis’ or

‘opportunity’ being identified – i.e. many organizations are driven to change due to

the business demands and not necessarily to change the culture (Weippert and

Kajewski 2004). Thus, there is a requirement of an industry level initiative to educate

the organizations and people about the requirement of change in cultural issues for

effective adoption of ICT as it requires continuous technological and cultural

changes within the organizations. Researchers have highlighted that it can be

accomplished by building an innovative and adaptive culture that enhances

employees’ ability to adapt themse lves to an ever-changing work environment

(Stewart and Mohamed 2001).

Table 2.6 chronologically lists some more research papers discussing the requirement

to study synergy between technology, process and cultural issues.

Table 2.6: Research Papers Discus sing Synergy between Technology, Process and Cultural Issues


Line

The paper discusses a philosophical, technological and social context for a full-scale experiment of using virtual teams for project execution.

1997

Egbu et al.

The paper studies the role of social issues, organizational culture and motivation in the effective adoption of IT for teamworking in construction.

2001

Sturges and Bates The paper deals with the influences of such issues as the industry, the climate and the culture on integrated data handling system.

2001

Huang et al.

The paper suggests an integrated Technology -process-culture model to support effective adoption of IT in the construction industry.

2002

Alshawi and Ingirige

The paper emphasizes that in order to successfully embrace web enabled PM, equal consideration should be given to technology, processes and people.

2003

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2.8.3 Available Technology

ICT adoption in the construction industry leads to specific requirements with respect

to technology. Liberatore et al. (2001) have identified following technology related

issues as enablers of effective adoption of ICT and as areas of future research:

• Integrating PM software with other software packages and with enterprise

wide systems for such activities as materials management and financial

control.

• Increased flexibility of PM software.

• Ease of use issues including making the software more user friendly.

• Improved software capabilities to communicate project information with

project sites, increased capabilities to handle project uncertainty/risk and

improved methods to forecast activity duration.

A project web site provides a centralized, commonly accessible, reliable means of

transmitting and storing the project information, but people require a road map to

integrate the project web sites as a tool into their work on a daily basis (O’Brien

2000). Onsite work conditions may sometimes permit only the use of wireless or

portable devices. However it must be recognized that portable and handheld devices

simply cannot handle computationally heavy jobs due to their specific hardware

configurations (Pena-Mora and Dwivedi 2002). So, at remote sites, adequate

technological solutions are required. In the context of the Indian construction

industry, it is seen that India has a large population using English efficiently, but still

the majority in India cannot use this language. IBM, Microsoft and other IT agencies

have launched web sites, web portals and software in regional languages.

Availability of multilingual software could be considered as an enabler for effective

adoption of ICT in the Indian construction industry.

2.8.4 Training and Education

As per Froese (2002), training of construction executives is important for effective

adoption of a technology, otherwise the developed knowledge is lost. It could be

achieved by an industry level initiative of conducting ICT adoption training

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programs in collaboration with researchers and academia. This would lead to a

widespread technological change in the industry that requires a good level of

awareness of the technology throughout the industry, understanding of the

technology and how to work with it (Froese 1996). Liberatore et al. (2001) have

identified making ICT training more accessible and less costly as an important

enabler for effective adoption of ICT.

Thus training of people in the industry is important. But, this is an issue to be dealt

with strategically at the industry level by providing training facilities for students and

executives and at the organization level by helping their executives in availing these

training facilities.

2.8.5 Organization Level Factors

In a survey conducted to assess the status of ICT adoption in the Australian

construction industry, it was found that the annual turnover of an organization has

an effect on the uptake of ICT and the training performance in ICT for an

organization (Kajewski et al. 2004).

As discussed above, Liberatore et al. (2001) have identified improving capabilities of

PM software as enablers of effective adoption of ICT and areas of future research.

Thus, IT tools or PM software adopted for project management processes would

have an effect on ICT adoption for the project management processes. But, the

decision to use the PM software is to be taken at the organization level. Also, the

project team members could use advanced PM software if they have high IT

capability leading to high ICT capability.

In an organization, effective communication is linked to the integration of work units

across organizational levels (Green 2001). Integrated communication system of the

organization should integrate all its project sites and the general administration team

in the head office leading to a similar ICT capability, ICT infrastructure and systems

across the whole organization. Thus, the level of ICT adoption for general

administration works would affect ICT adoption for project management processes.

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Internet as the communication platform facilitates speedy transmission of

information and also saves money in communication with overseas construction sites

through the computer network compared to the traditional information handling

methods (Tam 1999). Thus, increased geographical separation between project

team members is an important factor that drives ICT adoption for the building

project management.

2.8.6 Perception Based Factors

In an organization, top management primarily initiates adoption of ICT, but effective

adoption of ICT is still dependent on the project managers who have the main

responsibility for managing the construction projects (Peansupap and Walker 2005)

and, as discussed above, to date a methodology has not been developed for the

construction industry to examine the potential contributions of information

management strategies in efforts to reduce overall project schedule and cost (Back

and Moreau 2000). As a result the benefits and barriers of ICT adoption are primarily

perception based and not quantifiable and these perceived benefits and barriers of the

project managers and senior management define the extent of ICT adoption by the

construction industry.

2.8.6.1 Perceived Benefits

The researchers have discussed the benefits of ICT in improving operational

performance through improved productivity – at project, organizational/team and

personal levels.

In a study Kajewski et al. (2004) have identified the benefits of ICT as:

• benefits to the project operations, both at the individual and at the

team/organization level.

• strategic benefits in the form of improved business opportunities that ICT

may provide.

• electronic banking and electronic archiving of documentation.

• intangible rewards of respect and self-fulfillment.

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In a study Smit et al. (2005) have identified the benefits of ICT as:

• improved communication management due to availability of a single central

repository for all project documents accessible 24hrs-a-day from anywhere

• cost reduction in management and distribution of documents.

• increased document control leading to increased accountability and audit

capabilities.

• considerable time saving through more efficient processes.

• improved design development process leading to reduction in the number of

errors caused due to inefficient information management.

• fostering a more collaborative approach and providing the operators and

owners of the projects with access to correct ‘as built’ information.

As per Peansupap and Walker (2005), effective adoption of ICT also reduces

information re-entry by linking information between all construction processes. The

ability of the system to capture data at source once, accurately and on time, provides

major benefits. It helps with the consistency and reliability of the processes and reuse

of information thereby giving more scope for effective manipulation of information

(Construct IT Initiative Report 1998).

Above discuss ion of perceived benefits indicates that these benefits are default

drivers for ICT adoption by SMEs as these benefits would lead to successful

completion of projects and reduced cost of communication and project management.

It would be a cyclic process leading to their increased market competitiveness and

business advantage.

2.8.6.2 Perceived Barriers

There is poor supply-chain management in the construction industry and

communication is one of the technologies considered relevant to meet this challenge.

There are however, perceived barriers to the effective adoption of ICT for achieving

the required communication.

Root and Thorpe (2001) highlight lack of strategic direction within the industry, both

in terms of overall direction and the standards and protocols that would inform any

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IT investment decision. As per Desai (1999), Barbour report has also identified

software incompatibility and lack of user education as an important barrier upon the

transition from paper to electronic record keeping. Such issues require strategic

initiatives at the industry level.

In collaborative working, benefits of any technology come through widespread

adoption of the technology, but in the construction industry there is a lack of critical

mass of construction projects requiring ICT adoption. This has resulted in

organizations being unwilling to make technological advances, especially with

respect to communication technologies (Root and Thorpe 2001).

Researchers have identified that organizations consider initial cost and cost of

keeping up to date with the technological developments in training and

hardware/software as important barriers for effective adoption of ICT (Root and

Thorpe 2001; Mitropoulos and Tatum 2000). This inability of organizations to

quantify process improvements and uncertainty of benefits from process and culture

changes is one of the primary barriers to the effective adoption of ICT for

construction project management.

In a survey it was found that not having an ICT professional on the site or within

ready access was a strong influential barrier to the uptake of ICT on projects

(Kajewski et al. 2004), since adequate support to the construction site processes is

important for collaborative ICT adoption in the construction projects. The inability to

share data in electronic form between project partners (Smit et al. 2005),

organization’s perception that ICT is not part of its core business, inconsistent

employee requirements on projects, not having an ICT implementation ‘champion’

on a project, demanding and inflexible workload and lack of ICT training and

experience (Kajewski et al. 2004) are also identified as significant barriers.

Champions are the individuals who are committed to the change and are in a position

to influence their organizations (Froese 1996) or the project teams. The champion

could be the project manager or the client.

Technology related barriers have also been identified. In a survey, it was found that

most of the respondents agreed that the quality of IT equipment and infrastructure

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made available to them was a major factor in ensuring that they used it (Egbu et al.

2001). Therefore, inappropriate and inadequate ICT infrastructure is a barrier for its

effective adoption. Also, there is a fear of data security (Root and Thorpe 2001),

which requires attention. Table 2.7 chronologically lists some more research papers

discussing perceived benefits of and barriers to ICT adoption in the construction

industry.

2.8.7 Industry Drivers

In a survey it was found that amongst the identified drivers for ICT adoption, the

only issue with a below average mean response was ‘to help become industry leaders

in ICT adoption’ (Kajewski et al. 2004). As discussed above, Rivard (2000) has also

identified that technology improvement in the construction industry is usually driven

by necessity rather than by the desire to be at the cutting edge (Ranadive and

Gaikwad 2006). Thus, perceived industry drivers are important factors affecting the

adoption of ICT.

Some of the industry drivers identified in the literature very commonly are: increased

geographical separation between project team members, increased demand to

complete the projects in estimated time and cost and as per the specified quality, and

increased involvement of multiple agencies in the construction projects. Some of the

other discussed industry drivers are: requirement of larger organizations to ensure

that operational procedures and quality standards of their contract organizations are

compatible with their standards (Huin 2004) and the education of upcoming

construction program graduates in ICT technologies. Opfer (1997) has identified that

contractors have partly adopted computerized cost estimating and other systems due

to the fact that college-educated construction graduates were familiar with these

tools.

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Table 2.7: Research Papers Discussing Perceived Benefits of and Barriers to ICT Adoption in the Construction Industry


Love et al.

The paper aims to determine the barriers that small-medium sized contractors are experiencing when confronted with the requirement to implement e-commerce to sustain their competitiveness. It also proposes strategies that may be adopted by them to leverage the benefits of e-commerce.

2001

Nielsen and Sayar

The paper discusses a web-based case study for a building project to test a suggested information flow model. It provides a basis for automation and secures the information flow, document control and communication in construction companies. It looks at benefits of the process.

2001

Robeiro and Love

The paper demonstrates how the adoption of an e-business strategy can be used to create value throughout the supply chain in construction and provides insights into the benefits and limitations of the technologies used. Paper also suggests how different Internet and Web-based technologies can be used by SMEs to gain a competitive advantage in their respective marketplaces.

2003

Andresen et al.

The paper discusses the use of web for PM in four case studies. One of the major findings is that the planning of why and how the project web should be used is often rushed, not leading to expected efficiency gains.

2003

Chinowsky and Rojas

The paper presents the findings of a research that addresses the opportunities and potential barriers to successful virtual teams in the engineering, procurement and construction industry.

2003

Thorpe

The paper describes research into the use of Online Remote Construction Management (ORCM) on road construction projects, from the perspective of an industry representative in the research project. Observed benefits from using ORCM and issues in implementation are discussed.

2003

Weippert et al.

The paper describes ‘Best Practice Guidelines’ formulated to help reinforce the requirement for further research and development (R&D) of (a) innovative ICT tools and ICPM systems, (b) identifying ways to overcome industry cultural ‘barriers’ and ‘modifying’ traditional work ‘habits’ and (c) identifying improved implementation procedures and application opportunities within the construction industry.

2003

Kajewski and Weippert

The paper identifies the benefits and challenges to the adoption of e-Tender systems and considers future industry trends and recommendations.

2004

Ruikar et al

The paper highlights the drivers for adoption of extranets and its impact on end-user business processes. It also documents the end-user viewpoints on benefits and drawbacks of using project extranets.

2005

2.8.8 Summary of Factors

The above literature study and understanding of the construction industry has helped

in the identification and categorisation of the factors at the level of industry,

organization and people. Fig. 2.3 is a cause-effect diagram showing categorisation of

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Strategic and technological co-ordination of factors at all the levels is essential for

effective diffusion of ICT at the industry level. This issue rose to prominence from

the work of Porter (1991) (Clark et al. 1999). Thus, a holistic study is required to

assess the effect of these factors, and these factors can not be studied in isolation.

Researchers have grouped the benefits of IT for construction project management

with respect to different perspectives: Serafeimedis and Smithson (2000) have

classified these benefits as tangible and intangible (Stewart and Mohamed, 2001);

similarly Andresen et al. (2003) have termed these benefits as economically

measurable, measurable and non-measurable benefits; Farbey et al. (1995) and Irani

and Love (2001) have categorized these benefits as being strategic, tactical and

operational (Love et al., 2004); Stewart and Mohamed (2004) have informed these

benefits as informational, automational and transformational. Peters (ed. Willcocks

1994, p.99-131) categorizes the benefits as those of enhanced productivity, business

expansion and risk minimization (Love et al. 2004).

Use of ICT for Building Project Management

Fig. 2.3 Factors Affecting ICT Adoption for Building Project Management

Training

Cultural Factors

Perceived Barriers

Perceived Benefits

People Level Factors Industry Level Factors

Training and Education

Available Technology

Strategic Issues

Industry Drivers

Cultural Factors

Use of ICT for General Administration

Turnover of the Organization Geographical Separation of Project Team Orgs.

IT Tools utilized for PM Processes

Organization Level Factors

Cultural Factors Strategic issues

Training of executives

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In this research, with the focus on ICT adoption for building project management, the

benefits of ICT as perceived by people are categorized as benefits related to:

• Measures of Project Success

• Effective Team Management

• Effective use of Technology

• Increased Organizational Efficiency

The barriers as perceived by people and their mitigating enablers have also been

categorized as related to:

• Technology

• Projects

• Organization

• Industry

The identified perceived benefits, barriers, enablers and industry drivers are

discussed in detail in Chapter 4 and 5.

2.9 Strength of the Contemporary Research

Based on the review of the reported literature, following strengths of contemporary

research can be cited:

• Many international research journals have published and given significant

importance and thrust to the research on ‘IT adoption in the construction

industry’. Some of the books have also discussed issues concerned with the

strategic adoption of IT by the construction industry. These journals and books

have been referred for the literature review and are indicated in the References

section. Such publications provide a major boost to the research in this area.

• Recent technological advances in the tools adopted for communication have led

to the sudden and sustained scope of improvement in ICT adoption for project

management and specifically by SMEs. This has drawn attention of the

researchers studying technical as well as managerial and cultural issues affecting

adoption of ICT in the construction industry.

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• Construction industry has now recognised the significance of effective adoption

of ICT for sustaining the global competitive environment. Workshops, seminars

and conferences are frequently held to provide a forum for researchers in this

area to meet and share their research findings and also to keep the managers

updated with the latest research and technical developments in this area. Papers

from proceedings of many such interactions are referred in the literature and are

indicated in the References section.

• As discussed in Sec. 2.7.1, national level initiatives have been taken in some

countries to assess the adoption of IT/ICT in the construction industry of their

country and to formulate strategies to increase its adoption.

2.10 Gaps in Contemporary Research and Identification of Research Areas

Table 2.8 identifies the research areas after identification of the gaps in literature and

leads to the validation of research topics and objectives.

Table 2.8: Summarization of Research Conducted, Research Required and Validation of the Research Objectives

S.No Research Conducted Research required Validation of research topic and objectives

1 Research conducted till date has primarily considered construction industry as a whole.

Requirement is to study ICT adoption for building construction projects and engineering or infrastructure projects separately, as the characteristics of supply chain issues, management procedures and contract conditions are different in both the categories of projects.

Identified research area validates the focus of the research topic i.e to study ICT adoption for building project management.

2 Research conducted till date has primarily studied adoption of IT by the construction in dustry, which would include applications for individual functions and communication technologies. Some of the later research papers do focus specifically on effective adoption of ICT by the construction industry.

Research is required to further study ICT adoption separately and also to study the causal relationship between uses of advanced IT applications and adoption of ICT.

Identified research area validates research objectives ‘vi and vii’.

3 Research conducted till date primarily studies factors affecting IT/ICT adoption either at the industry level, organization level or at the project level.

Requirement is to study the factors at all the three levels separately and also collectively.

Identified research area validates research objectives ‘iii, iv, v, vi and vii’.

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Table 2.8 Continued 4 Research conducted till date

primarily studies IT/ICT adoption either at the design stage or at the project execution stage. But, project management integrates all the stages of the projects.

Requirement is to study factors for effective adoption of ICT at all the stages of the building construction projects for successful project management.

Identified research area validates research objectives ‘iii, iv, v, vi and vii’.

5 Research till date has been primarily conducted in Europe, USA and Australia. Recent research in South East Asian countries has also been reported. So, the survey data discussed in the research papers present status of IT/ICT adoption in these regions. As identified from Table 2.1, only one such survey has been reported for the Indian construction industry. But, the sample size of the survey was very small.

India is a large country and to study these issues specifically for Indian sub-continent, requirement is to conduct a survey covering large regional areas within India and to have a large sample size.

Identified research area validates research objective ‘i’.

6 As identified from Table 2.1, research in ICT adoption by the Indian construction industry is at a nascent stage

Requirement is to study factors affecting ICT adoption in the Indian construction industry and

Identified research area validates research objectives ‘iii, iv, v, vi and viii’.

and at individual levels. provide a framework to initiate a national level strategy for increasing its adoption.

7 Recent research has also studied issues in relation to SMEs, but project management structure followed by SMEs has not been studied.

Requirement is to study project management structure and extent of formal project management processes conducted by SMEs for building project management. This will help in understanding requirements for ICT adoption by SMEs for building project management. This study has to be region specific, even though the results can be generalized after due considerat ion. This research would be conducted with reference to Indian construction industry and generalized as suggested.

Identified research area validates research objective ‘ii’.

8 Research papers indicate some research efforts towards establishing frameworks for benchmarking IT/ICT adoption by the construction industry, but extensive research in this area is not

Research is required to further study and provide a framework for benchmarking the extent of ICT adoption for building project management by the organizations. A framework is required to collectively

Identified research area validates research objective ‘viii’.

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reported. assess ICT adoption at organization and industry level. Through this framework, organizations should be able to measure their ICT adoption and align it with their business objectives. The framework should be general, but the levels (low to high) defined in the framework should be region specific. This research would develop a framework indicating levels with reference to Indian construction industry.

Thus, identified research areas validate identified research objectives.

2.11 Summary

In this chapter, literature review started with the background of research issues

related to ICT adoption for building project management, ICT tools and technologies

and the study of SMEs and the Indian construction Industry. This was followed by

the study of research background in these issues including international research and

research in India and the identification of research variables in terms of factors

affecting ICT adoption. The study of contemporary research helped in identification

of the strength of the research and gaps in research leading to the identification of

research areas. Identified research areas aligned with the research objectives, leading

to the validation of the objectives are discussed in Chapter 1. Thus, identified gaps

explain the context, significance and purpose of the research and provide direction

and motivation for the present research. The next chapter describes identified

research hypotheses and research methodology designed for conducting the research.

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Chapter 3: Research Methodology

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

The guideline for designing the research methodology for the study was the

definition of ‘Research’ as given by Kothari (2005, p.6): “Research replaces intuitive

business decisions by more logical and scientific decisions.”

Research methodology includes research methods as well as the logic behind the

methods used in the context of the research study. Before designing the research

methodology, however, each major concept, which researcher wants to measure must

be explicitly understood and the framework for results formulation should be

defined. This helps in understanding what information is to be obtained for solving

the problem or for arriving at the research objectives. In this research, the major

concepts are the research variables or the factors affecting the adoption of ICT for

the building project management and the research hypotheses.

The design of the study for a complex subject is a very challenging task and requires

quite a bit of innovation. This task was approached systematically by identifying the

research variables, evolving the conceptual framework, formulating the hypotheses

and designing the research methodology to meet the objectives. A number of creative

ideas had to be explored to get feedback from senior executives of a large number of

organizations managing building projects in the Indian construction industry. Details

of the key steps in the design of the study are discussed in the following sections.

3.2 Research Variables

Factors affecting ICT adoption for building project management are the research

variables that are required to be studied. Fig. 2.3 presented the factors at the levels of

industry, organization and people. All these variables are required to be studied

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independently as well as together, because together these become the factors

affecting ICT adoption for building project management by the industry. People

work on the projects, but their adoption of ICT is defined by the variables attached

with them as well as by the variables attached with their organizations, since they

represent their organizations. Similarly ICT adoption by an individual organization is

defined by the variables attached with it as well as by the industry level variables,

since it represents its national construction industry. Thus, causal relationships

between these variables are required to be studied.

Variables with attached indicators can also be termed as macro variables with

attached indicators or micro variables. Indicators are the dimensions that help in

measuring and quantifying the macro variables. These need to be elaborated and

explained. Literature review and understanding of the construction industry has

helped in the identification of the micro variables for identified factor s, which would

be further divided into the measurable dimensions. Variables for which dimensions

are identified and can be measured quantitatively are measured and analyzed through

the quantitative assessment approach. For other variables, dimensions are identified,

measured and analyzed through further analysis utilizing qualitative analysis

approach. Table 3.1 lists the macro variables, identified micro variables and the

assessment approach for each macro variable.

3.2.1 Justification of the Chosen Research Variables

Many other variables, apart from the identified variables, indirectly affect ICT

adoption in the construction industry. However, the mindset in choosing the research

variables for this study was to consider the variables that directly affect ICT adoption

for building project management, as otherwise the study would have been

unmanageable.

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Table 3.1: Identification of Micro Variables for the Macro Variables and Type of Study Required for Each Variable

Macro variables Micro variables Type of study required Industry Level Factors Strategic Issues (IF1) Qualitative assessment Training and Education (IF2) Quantitative/Qualitative

assessment Perceived Drivers (IF3) Quantitative assessment Available Technology (IF4) Quantitative/Qualitative

assessment Cultural Factors (IF5) Quantitative/Qualitative

assessment Organization Level Factors Strategic issues (OF1) Quantitative/Qualitative

assessment Turnover of the Organization (OF2)

Quantitative assessment

Infrastructure maturity for use of ICT for general administration

Quantitative assessment ICT for general administration (OF3)

Extent of use of ICT for general administration


IT Tools utiliz ed for Project Time Management processes


IT Tools utilized for Project Cost Management processes


IT Tools or advanced software utilized for building PM Processes (OF4)

IT Tools utilized for Project Resource Management and administrative processes


Percentage of projects on which organization has interacted with geographically separated agencies within India in last 5 years

Quantitative assessment Geographical Separation of Project Team Orgs (OF5)

Percentage of projects on which organization has interacted with overseas agencies in last 5 years


Cultural Factors (OF6) Quantitative/Qualitative assessment

Training of Executives (OF7) Quantitative/Qualitative assessment

People Level Factors Training (PF1) Quantitative/Qualitative

assessment Benefits related to effective use of technology


Benefits related to effective team management


Benefits related to measures of project success


Perceived Benefits (PF2)

Benefits related to increased organizational efficiency


Technology related barriers Quantitative assessment Projects related barriers Quantitative assessment Organizations related barriers Quant itative assessment

Perceived Barriers (PF3)

Industry related barriers Quantitative assessment Cultural Factors (PF4) Quantitative/Qualitative

assessment

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3.3 Hypotheses Formulation

Literature survey and deep understanding of Building Project Management has

resulted in the formulation of the following Research Hypotheses. Three sets of

hypotheses have been formulated. One set is ‘Hypotheses determining dimensions of

qualitative factors’ i.e factors that are to be qualitatively assessed. The second set is

‘Hypotheses of Causal relationships’ and tests the effect of identified quantitative

factors on ICT adoption for building project management. The third set covers

‘Supplementary Hypotheses’.

3.3.1 Hypotheses determining dimensions of qualitative factors

Dimension for Factor IF1:

HD1: For building project management, collaborative use of ICT is not as prevalent

as the internal use of ICT within organizations.

Dimensions for Factors IF2, OF7 and PF1:

HD2: It is perceived that education of the users for ICT adoption and its benefits is

important for increasing effective ICT adoption in building projects.

HD3: It is perceived that more accessible and less costly ICT training for executives

is important for increasing effective ICT adoption in building projects.

Dimensions for Factor OF1:

HD4: Majority of SMEs do not have a communication management strategy within

the organization.

HD5: Adoption of ICT by an SME is project specific and not organization specific.

Dimension for Factor IF5, OF6 and PF4:

HD6: Personal meetings are still preferred over teleconferences and other e-meeting

solutions for managing building projects.

3.3.2 Hypotheses of Causal Relationships

HR1: Organizations with higher turnover have higher adoption of ICT.

HR2: Increased use of advanced software for individual functions or processes

positively affects ICT adoption for communicating information with respect

to those processes.

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HR3: Geographical separation of the project team members positively affects ICT

adoption for building project management processes.

HR4: Perceived benefits of ICT adoption positively affect ICT adoption for the

building project management processes.

HR5: Perceived barriers for effective ICT adoption negatively affect ICT adoption

for the building project management processes.

3.3.3 Supplementary Hypotheses

HS1: It is perceived that adoption of ICT leads to significant benefits with respect

to building project management.

HS2: It is perceived that increase in ICT adoption by SMEs for managing building

projects is driven by industry requirements.

HS3: Extent of adoption of ICT for building project management differs for the

three groups of sample organizations i.e Builders, Project management

consultancy organizations, and Architectural organizations.

3.4 Research Design

Research design may be defined as the plan for moving from the research question to

the conclusion. A design, which yields maximal information and provides an

opportunity for considering many different aspects of a problem, is considered most

appropriate and efficient design in respect of a research problem (Kothari 2005, p.31-

52). Research design must contain: A clear statement of the characteristics of the

research problem; Unit of analysis; Data collection; and Analysis approach.

3.4.1 Understanding of the Characteristics of Re search Problem

To understand the nature of the research problem, the research aim is again

presented:

The Research Aim is to develop protocols for effective adoption of Information



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As per Kothari (2005, p.1-21), based on the research aim and objectives, research can

be categorized as under:

Descriptive, Formulative or Analytical research: Descriptive research includes

surveys and fact-finding enquiries of different kinds. Formulative or exploratory

research aims at formulating a problem or developing a working hypothesis.

Analytical research involves using facts or information already available and

analyses and makes a critical evaluation of the material. This research can be

categorized as descriptive research.

Applied or Fundamental research: Applied or action research is aimed at discovering

a solution for some immediate practical problem facing a society or an

industrial/business organization, whereas fundamental or basic/pure research is

mainly concerned with generalizations and with the formulation of a theory. This

research can be categorized as applied research.

Conceptual or Empirical research: Conceptual research is related to some abstract

idea(s) or theories and is used by philosophers and thinkers to develop new concepts

or to reinterpret existing ones. Empirical research relies on experience and is a data-

based research. In such research, the researcher must first have a working hypothesis

or guess as to the probable results, and then works to get enough facts (data) to prove

or disprove the hypothesis. Empirical research is also appropriate when proof is

sought that certain variables affect other variables in some way. This research can

be categorized as empirical research.

Comprehensively considered, this research can be categorized as applied, since it

addresses the problem of increasing effective ICT adoption for building project

management by SMEs in the Indian construction industry; descriptive, since survey

is being conducted for data collection and empirical, because it involves testing the

hypotheses including testing the causal relationships between the research variables.

Such studies involving the testing of hypotheses of a causal relationship between

variables require a design, which will permit inferences about causality, in addition

to the minimization of bias and maximization of reliability (Kothari 2005, p.1-21).

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3.4.2 Unit of Analysis

Hussey and Hussey (1997) defined the unit of analysis as the kind of case to which

the phenomena in the research problem refers. The unit of analysis may be an

individual, an event, an object, a group of individuals or a relationship. Kervin

(1992) suggested that as a rule it is best to choose a unit of analysis at the lowest

level possible where the decisions are made. The best guides for choosing a unit of

analysis are the research aim and the objectives, as they explicitly refer to the focus

of the study.

The unit of analysis is required to be determined even as the research questions are

formulated because the data collection methods, sample size, and even the variables

included in the framework may sometimes be determined or guided by the level at

which the data will be aggregated at the time of analysis (Sekaran 2000, p.135-138

cited in Tone 2005).

In reference to this research study, organizations managing the building projects are

the lowest level where decisions for ICT adoption for building project ma nagement

are taken. However, subjective factors affecting ICT adoption at the project level are

also required to be studied. Thus, the unit of analysis for the research is both an SME

managing building projects and a building project being managed by that SME.

Based on the literature review, for the research study, an SME is defined as an

organization with its number of staff upto 250.

3.4.3 Data Collection and Analysis Approach

Data collection, data analysis and the development and verification of relationships

and conclusions are very much an interrelated and interactive set of processes. The

analysis occurs during the collection of data, as well as after it, and helps to shape the

direction of data collection (Saunders et al. 2000, p.380-406).

Data collection and analysis can be conducted through quantitative approach,

qualitative approach or mixed methods approach. The former involves generation of

data in the quantitative form, which can be subjected to rigorous quantitative analysis

in a formal and rigid fashion. Qualitative approach is concerned with the subjective

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assessment of attitudes, opinions and behavior. Research in such a situation is a

function of the researcher’s insights and impressions. Such an approach to research

generates results either in a non-quantitative form or in the form that is not subjected

to rigorous quantitative analysis.

Broyd (1999) claims that the industrial adoption of high technologies in the

construction sector can be described as a technology-process-culture (TPC) triangle

(Huang et al. 2002). Similarly effective adoption of ICT by construction

organizations requires utilization of this triangular paradigm and equal consideration

of the associated technology, process and cultural aspects. To consider social,

cultural and contextual variables affecting different latent constructs or factors, a

hybrid methodology utilizing the symbiotic relationship between quantitative and

qualitative studies is required to be utilized. Saunders et al. (2000) have also

suggested that it is often beneficial to use a mixed methods approach by combining

quantitative and qualitative methods and using primary and secondary data in the

same study, as it helps in using different methods for different purposes in the study

and enables triangulation to take place at the stage of the formulation of results.

Triangulation is used to describe a multi-method approach for ascertaining and

confirming results, so that the researcher has confidence that the phenomenon

observed is because of the ‘trait’ and not because of the ‘method’ (Srivastava and

Teo 2006).

As discussed above, in this research, study of the identified research variables

requires use of quantitative as well as qualitative methods. Thus, this research

focuses on collecting and analyzing both quantitative and qualitative data in a

sequential manner (sequential mixed methods). To develop a balanced check

mechanism, the research was divided into four phases: Interpretive analysis of

perceived benefits of ICT adoption for building project management, conducted by

ISM analysis; Questionnaire survey data collection and empirical analysis of data

including SEM analysis (quantitative method); Semi-structured interview survey data

collection and analysis including DEA analysis (quantitative and qualitative method);

and Case Studies analysis conducted by SAP-LAP analysis (qualitative method)

leading to synthesis of the results of the four phases. The purpose of this four-phase,

sequential mixed methods study was to start with pragmatic assumptions, obtain

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statistical, quantitative results from a broad sample of organizations to analyze or

study research variables at industry and organization level and then follow up with a

few organizations and projects to study the research variables at the level of

organization and projects to probe, explore and validate the results in more depth.

According to Wass and Wells (1994) semi-structured interviews may be used to

explore and explain themes that have emerged from the use of questionnaire

(Saunders et al. 2000, p.242-270). Data analysis in the mixed methods research

relates to the type of research strategy chosen for the procedures (Creswell 2003

cited in Tone 2005). For the sequential mixed method strategy of this research,

analysis occurs within both the quantitative and the qualitative stages of research.

The first phase was interpretive analysis of perceived benefits. Interpretive Structural

Modeling (ISM) technique was used to assess the importance of perceived benefits

of ICT adoption for building project management and their driving power and

dependence on other benefits. This led to the formulation of the additional

hypotheses of causal relationships and a framework for the benefits management

plan within the organizations.

Questionnaires are an efficient data collection mechanism when the researcher

knows exactly what is required and how to measure the variables of interest (Sekaran

2003). The second phase involved administering a questionnaire survey with

predominantly quantitative research questions to address the research variables.

Therefore, initially an extensive literature review was undertaken to help establish a

rationale for the research questions and to ascertain the extent and depth of existing

knowledge on the research variables. The literature was used deductively as a basis

for advancing research objectives (Creswell 2003, p.32). The data was analyzed

through rigorous statistical analysis. The results included a proposed framework for

benchmarking ICT adoption for building project management. It required

quantitative and qualitative assessment for validation and finalization. Qualitative

data analysis was also required to establish dimensions of research variables like

cultural issues that required qualitative assessment.

Semi-structured inte rviews are appropriate for triangulating the data collected by

questionnaire (Saunders et al. 2000, p.242-270), for exploring and explaining themes

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that emerge from the use of questionnaire survey and also to validate findings from

the use of questionnaire (Wass and Wells 1994 cited in Saunders et al. 2000, p.242-

270). Thus, the third phase consisted of semi-structured interviews conducted at the

organization level leading to finalization and validation of the benchmarking

framework. It included quantitative as well as qualitative analysis.

The purpose of case studies is, “to tell a big story through the lens of a small case.”

(Tan 2004). The fourth phase, the qualitative study was the case studies analysis

conducted to identify social, cultural and behavioral factors affecting ICT adoption.

Synthesis of the four phases of the study is a qualitative phase, as it required

researcher’s experience and judgment for the formulation of results.

Research methods generate techniques and appropriate data analysis techniques were

adopted for each stage of the research. The research methods and techniques adopted

in the three phases are discussed in detail in subsequent sections.

3.5 Research Methods

Research methodology is a way to systematically solve the research problem

(Kothari 2005, p.8) and it helps to structure the research process in logical steps

through appropriate stages. Only by using appropriate methodologies and methods of

research, applied with rigor, can the body of knowledge for construction be

established and advanced with confidence (Fellows and Liu 2003).

Research methodology has been planned to achieve the research objectives by way

of including effective data collection, analysis and their validation methodologies.

The whole process would facilitate continuous knowledge building that is required

for the research process.

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3.5.1 Interpretive Structural Modeling (ISM)

Perceived benefits of ICT adoption for building project management were identified

from the literature and after discussion with the experts from the industry and

academics. These identified perceived benefits are listed in Chapter 4 (Table 4.1).

Relation between these benefits and the dependence and the driving power of each

benefit with respect to other benefits was analyzed. This analysis provides

framework for the building project managers to plan adoption of ICT for the projects.

It shows that if they are planning ICT adoption for achieving certain benefits, then

what are the other driving benefits that should be achieved prior to that and also,

what are the dependent benefits that would be subsequently achieved by default. The

analysis required examination of direct and indirect relationships between the

benefits, rather than considering these benefits in isolation.

Interpretive Structural Modeling (ISM) technique has been applied to analyze the

relation between these benefits and to understand the dependence and the driving

power of each benefit with respect to other benefits.

ISM is one of the tools of Interactive Manage ment (IM) (Warfield 1974). It is a well-

known methodology for identifying and summarizing relationships among specific

elements, which define an issue or a problem and is a method by which order can be

imposed on the complexity of such elements (Mandal and Deshmukh 1994). The

developed model is portrayed in words as well as graphically.

ISM methodology is interpretive from the fact that the judgment of the expert group

decides whether and how the variables are related. It is structural too, as on the basis

of the relationships, an overall structure is extracted from the complex set of

variables. It is a modeling technique in which the specific relationships of the

variables and the overall structure of the system under consideration are portrayed in

a digraph model. ISM is primarily intended as a group learning process, but it can

also be used individually (Ravi and Shankar 2005).

ISM has been used by researchers for understanding direct and indirect relationships

among various variables in different industries. It has been used to study higher

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education program planning (Hawthorne and Sage 1975), energy conservation in

Indian cement industry (Saxena et al. 1992), vendor selection criteria (Mandal and

Deshmukh 1994), important elements for the implementation of knowledge

management in Indian industries (Singh et al. 2003), strategic decision making in

managerial groups (Bolaños and Nenclares 2005) and barriers of reverse logistics

(Ravi and Shankar 2005).

However, in the literature no evidence was found of use of ISM methodology for

construction related research. Watson (1978) has specifically discussed about ISM as

an appropriate tool for technology deployment assessment and was thus considered

appropriate for studying deployment of ICT in the construction industry.

ISM analysis is discussed in Chapter 4.

3.5.2 Questionnaire Survey (Industry Level)

The questionnaire survey was conducted for quantitative data collection and analysis.

It provided feedback about the validity, relevance and significance of potent ial

indicators for each research variable.

The mail questionnaire, as the term indicates, is a survey in which the questionnaires

are sent out by the researcher and answered by the respondents without the

researcher’s intervention (Dane 1990). Compared with personally administered

questionnaires, mail questionnaires can cover a wider geographical area, can be

conducted at low cost, both for data collection and processing, and avoid researcher’s

bias (Oppenheim 1992). Mail survey methodology was adopted, as India is a large

country and to have a sample representing the industry, a large sample size was

required. Also, for greater reliability, the sample size should be sufficiently large

(Kothari 2005, p.55-68). However, the return rates of the mail questionnaires are

typically low (Dane 1990; Bourque and Fielder 1995). A 30% response rate is

considered acceptable for statistically reliable information (Fellows and Liu 2003;

Sekaran 2003). Nevertheless, some effective techniques can be employed for

improving the response rates to the mail questionnaires, like sending follow-up

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letters, providing the respondents with self -addressed, stamped return envelopes, and

keeping the questionnaire brief.

Important components of the questionnaire survey are discussed below.

3.5.2.1 Questionnaire Design

As defined by Kothari (2005, p.95-121), a questionnaire is “basically a collection of

questions that fit the research topic and its objectives and the answers to which will

provide the data necessary to test the hypotheses formulated for the study”. Also as

per the definition of Nachmias and Nachmias (1981), the foundations of all the

questionnaires are the questions or statements for which the researcher intends to

seek answer or opinion in terms of level of agreement.

In designing a questionnaire, the researcher has to cautiously pass through the

various stages of clearly defining the research aim and objectives, research variables,

and relationship of variables and formulating hypotheses. The questionnaire has been

designed after identifying the measurable dimensions of research variables that can

be assessed quantitatively. The dimensions have been identified through the literature

review, enriched by the researcher’s experience and validated through pre-

consultations with experienced executives and academicians. As the response rates of

such surveys are not enthusiastic and the respondents are generally reluctant to spare

their time in responding to these questionnaires, primarily close-ended questions

were included so that lesser time and effort were required in filling up the

questionnaire. This also helped in getting the data in a standard format as required for

statistical analysis. The questionnaire was divided into four sections.

Section I contained questions that assess the organization size in terms of turnover

and staff strength, organization's area of expertise and primary mode of project

execution, project team structures in terms of geographical separation of project team

organizations, ICT maturity of the staff and the organization, and mode of

communication adopted for general administration. Section II was a tool for mapping

building project management (PM) processes adopted in the industry, assessment of

software applications adopted for these processes, and ICT adoption for each

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identified PM process. The PM processes have been divided under four groups: Time

Management; Cost Management; Project Administration and Resource Management;

and Communication Management. Section III assessed the perception of project

managers regarding perceived benefits, barriers, enablers and industry drivers

affecting ICT adoption for building project management. Qualitative perceptions

analysis is converted into quantitative values with the help of a five point Likert

scale. Section IV provided the data regarding respondent’s profile. It is considered

important to get this information since data reliability is related to the data source

and the identification of the position held by the person who completed the

questionnaire (Oppenheim 1992).

Exhaustive options were given for each question, but to get the accurate data, for

some questions respondents were also given an option to provide answers different

from the options given. Nominal, ordinal and interval scales were used in the

representation of options for different questions. Some questions were represented

through interval scale and for some questions yes/no option was given. Interval scale

was considered appropriate for those questions in which the requirement was to rate

the inequalities between organizations within equal intervals (Kothari 2005, p.69-

94). Ordinal scales were Likert-type 3-5 point scales. Likert type scales are normally

used in respondent-centered and stimulus -centered studies, i.e through these scales

we can study how responses differ between people and how responses differ between

stimuli (Kothari 2005, p.69-94). The sample population has been divided into three

groups as described below. Each group has a different stimuli based on their area of

expertise and their responses would differ accordingly.

3.5.2.2 Survey Population

The unit of analysis for the survey was organization and the sample population was

small and medium enterprises (SMEs) in the Indian construction industry. Survey

was conducted across India to minimize the regional bias. Survey sample was

selected from the Yellow Pages and the Notified lists of Professional bodies and falls

under the group of Purposive Sampling, which is considered desirable when the

universe is small and a known characteristic of it is to be studied intensively (Kothari

2005, p.17). In order to generalise the results, it is necessary to select a sample that is

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a true representation of the population. Thus, those organizations were included in

the sample, which were either managing building projects after being appointed as

the project managers or had the authority to manage their projects if a project

manager was not appointed formally. Therefore three groups of organizations were

included in the sample: builders including contractors who construct and manage

their own projects; project management consultancy organizations which are

formally appointed as project managers on building projects, and architectural

organizations which manage small to medium size build ing projects since on many

such projects, project managers are not formally appointed. Targeted respondents

were the senior level executives in the organizations.

3.5.2.3 Validation of Questionnaire

It is important that we are “measuring what we think we are measuring” (Kerlinger

1973). Thus, validation check is important to assure that what the researcher has in

mind when writing a questionnaire coincides with the respondents’ perceptions when

they go through it and the researcher gets an accurate result of the respondent’s

experience. Sekaran (2000, p.209) states that ‘goodness of measures’ is established

through the different kinds of validity and reliability and that results of any research

can only be as good as the measures that tap the concepts in the theoretical

framework (Tone 2005). According to Sekaran (2000), validity tests how well a

developed instrument measures the particular concept it intended to measure, while

reliability tests how consistently a measuring instrument measures the concept it is

supposed to measure. For a mixed methods approach, reliability and validity

measures apply just the same for both quantitative and qualitative data (Creswell

2003, p.220).

The questionnaire was tested for two main types of validity, which are conte nt

validity and criterion validity. Reliability was tested at the stage of data analysis.

Content validity represents the adequacy with which a specified domain of the

content is sampled (Nunally 1978) and validates that the instrument item has items

that cover all aspects of the variables being measured. Content validity cannot be

determined numerically. Its determination is subjective and judgmental. It primarily

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depends on an appeal to the propriety of the content and the way it is presented

(Nunally 1978). The instrument developed in this study demonstrates the content

validity, as the selection of measurement items was based on both, an exhaustive

review of the literature and evaluation by the academicians and practicing managers

during its pre-testing. Content validity was further tested during the pilot survey as

per the guidelines provided by Forza (2002).

Criterion related validity refers to the degree to which the measurements within the

questionnaire are meaningfully related to the objectives of the questionnaire. The

questionnaire was exposed to the experts from the industry and academics. Research

objectives and research variables being measured by the questionnaire were

explained to the experts and they were requested to give their opinion and

perceptions about it and their suggestions on how to improve it. Their suggestions

and opinions were incorporated into the questionnaire. Doing that, it was assured that

the measurements were meaningful to the objectives of the study.

3.5.2.4 Pilot Survey

Once the questionnaire validation was completed, it was subjected to pre-testing

through the pilot survey. The pilot survey respondents were selected from the same

population in which the main survey was to be conducted. Pilot survey was

undertaken to test the potential response rate, suitability and comprehensibility of the

questionnaire.

Questionnaire for the pilot survey was forwarded to 11 organizations and responses

were received from 7 organizations, leading to a response rate of about 64%. Later,

each respondent was interviewed on the basis of the questionnaire, with an objective

to locate the weak points of the questionnaire. Each respondent was requested to

communicate the difficulties faced in filling up the questionnaire and the possibilities

for further improvements for easy understanding of the respondents. The suggestions

regarding language, formulation of questions, sequencing, formatting etc. were

noted. The confusing and the problem questions were reformulated in consultation

with the respective respondents and rechecked with all the respondents individually.

Respondents were also asked to give their feedback regarding content of the

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questionnaire. This gives the researcher an indication of whether the questionnaire is

measuring the right concept and it is consistently measuring the concept being

measured, hence its validity and reliability Thus, the questionnaire was improved

with respect to the content, form, sequence of questions, spacing, arrangement and

physical appearance of the questionnaire, so as to get the desired response from the

respondents.

Primarily the questionnaire remained the same. But, in some questions respondents

had given multiple answers, which showed that for the processes indicated in those

questions, respondents were using multiple options. Such questions were modified to

understand the percentage of each option utilized by the respondents.

The modified questionnaire was forwarded for the main survey. Final form of the

questionnaire with all the details is presented in Appendix A.

3.5.2.5 Survey Administration

The questionnaire was administered with a brief write-up on the research objectives,

purpose of the questionnaire survey and the directions regarding filling it up.

Organizations were intimated about the survey through telephone or e-mail. After

receiving consent from them, the questionnaires were sent to them by post or through

e-mail, as suitable. Postal questionnaires were accompanied with self-addressed

envelopes for sending back the filled up questionnaires. Attempts were made to

minimize non-response through frequent and easy-to-understand correspondence

(Dillman 2000 cited in Prahinski and Benton 2004).

India is a large country and to minimize the regional bias, organizations in major

cities spread all over India were contacted. Sample size must fulfill the requirements

of efficiency, representativeness, reliability and flexibility (Kothari 2005, p.152-183).

Sample size is also governed by the data analysis technique to be adopted. ‘Structural

Equation Modeling’ (SEM) technique adopted for data analysis is a large sample size

technique. 149 usable responses were received for a response rate of 40.05%.

Detailed analysis of the respondents’ profile is discussed in Chapter 5.

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3.5.2.6 Data Analysis

The ‘Hypotheses determining dimensions of qualitative factors’, ‘Supplementary

hypotheses’ and hypothesis HR1 were tested through parametric and non-parametric

statistical analysis discussed in Chapter 5. HR1 studies the effect of ‘Turnover of the

organization’ on ICT adoption. This factor can’t be standardized for all the three

groups of organizations and was tested for each group separately. All other

‘Hypotheses of causal relationships’ were tested through ‘Structural Equation

Modeling’ (SEM) analysis discussed in Chapter 6.

Parametric and Non-parametric Statistical Analysis

Data analysis included testing the hypotheses and defining the status of ICT adoption

for building project management by SMEs in the Indian Construction Industry. This

was a very important component of the data analysis and provided a foundation for

the formulation of results. The analysis was conducted through the statistical analysis

software SPSS. Different statistical techniques used for data analysis are mentioned

briefly below, while detailed analysis is discussed in Chapter 5.

The reliability of the research instrument was evaluated using Cronbach’s coefficient

alpha (α). Cronbach's alpha is an index of reliability associated with the variation

accounted for by the true score of the "underlying construct". A ‘Construct’ is the

hypothetical variable that is being measured (Hatcher 1994 cited in Santos 1999).

Alpha coefficient ranges in value from 0 to 1 and may be used to describe the

reliability of the factors extracted from dichotomous (that is, questions with two

possible answers) and/or multi-point formatted questionnaires or scales (i.e., rating

scale). The higher the score, the more reliable the generated scale is (Santos 1999).

When data has a multidimensional structure, Cronbach's alpha is usually low. It

generally increases when the correlations between the items increase. For this reason,

the coefficient is also called the internal consistency or the internal consistency

reliability of the test.

Descriptive statistics indicators of mean, standard deviation, and frequency were

used to describe the basic features of the data in the study and to help in

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understanding three major characteristics of a variable in the study i.e. distribution,

central tendency and dispersion. Standard deviation is less affected by the

fluctuations of sampling (Kothari 2005, p.136). These advantages make standard

deviation and its coefficient a very popular measure of the dispersion or

scatteredness of a series. Descriptive statistics was useful in providing simple

summaries about the sample and the measures in graphical, tabular and statistical

format.

t-test was used to test the significance of a sample mean. One-way ANOVA test was

used to test the significance of the difference between the means of two samples.

Pearson correlation was used to test the association between the different variables.

Wilcoxon signed ranks test, a non-parametric alternative to paired sample t-test is

used to compare the difference between measurements of related samples. This test

was popularised by Siegel (1956) in his influential text book on non-parametric

statistics (cited in http://en.wikipedia.org/wiki/Wilcoxon_signed-rank_test). It can be

applied for the case of two related samples or repeated measurements on a single

sample. Like the t-test, the Wilcoxon test involves comparisons of differences

between measurements, so it requires that the data are measured at an interval level

of measurement. However, it does not require assumptions about the normal

distribution of the measurements. It uses z-statistics measure to test the significance

of difference between measurements. This test was used to test the hypotheses where

surveyed organizations are categorized based on their measures for two attributes of

a single factor.

Non-parametric Friedman test is used for two-way repeated measures analysis of

variance by ranks. It is a non-parametric test (distribution-free) used to compare the

observations repeated on the same subjects and is an alternative to the repeated

measures ANOVA, when the assumptions of normality or equality of variance are

not considered. Like many non-parametric tests, it uses the ranks of the data rather

than their raw values to calculate the statistic. This test was used to test the

hypothesis where significance of the ranking of the measure of a factor in the

surveyed organizations was to be tested. The ranking is also tested for significance

through the chi-square test.

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Structural Equation Modeling (SEM) Analysis

Structural model of the causal relationships between quantifiable factors affecting

ICT adoption for building project management was derived from the ‘Hypotheses of

causal relationships’. Correlation between factors can be calculated through Pearson

correlation, but, the correlation test does not allow us to make statements about

cause-and-effect relationship between factors (Stewart and Mohamed 2004). Also,

when there are multiple factors that influence one another and the problem occurs in

a chainlike fashion, it is required to identify the multiple, contextual crucial factors

that are associated with the problem, rather than establishing a singular cause-effect

relationship (Sekaran 2000). Thus, the structural model was tested through SEM

technique, since SEM enables us to concurrently test the hypothesized causal

relationships for the entire model (Meyer and Collier 2001). A systematic, iterative

process was used to determine which paths and factors should be eliminated from the

hypothesized model. Item elimination was based on weak loadings, path significance

and theoretical determination and thus the final model was derived. The model was

tested on AMOS 5.0, software used for formulating, fitting and testing structural

equation models to observed data.

SEM is an extension of the general linear model (GLM) and is a family of statistical

techniques, which incorporates and integrates path analysis and factor analysis

(NCSU 2006). It allows the evaluation of the entire models simultaneously, which

brings a more macro level perspective to the analysis rather than a micro-level one.

Maximum likelihood estimation is one of the techniques used in SEM analysis and

covariance is the basic statistic in SEM, even though other types of data such as

means can also be analyzed (Kline 1998, p.9-126). SEM consists of two components,

a measurement model and a structural model (Meyer and Collier 2001). In the

hypothesized model, the measurement model includes the relationships between the

factors and the questionnaire items (indicators) that operationalize the measurement

of those factors. It assesses how well the observed variables (indicators) reflect the

unobserved or latent variables (factors). A Structural model statistically represents

the hypothesized structure and testifies the causal relations between the latent

variables (factors).

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SEM has been widely applied to analyze relationships among variables in marketing,

customer research and quality issues (Bollen 1989; Bagozzi 1994; Meyer and Collier

2001; Datta 2003). In construction industry related research, Molenaar et al. (2000)

have applied SEM to test a causal relationship model describing and quantifying the

fundamental factors that affect contract disputes between owners and contractors in

the construction industry, Mohamed (2002) has applied SEM to conduct empirical

research aimed at examining the relationship between the safety climate and safe

work behavior in construction site environments, and Mohamed (2003) has also

applied SEM to investigate the relationships between reported risk and success

factors, and the performance of international construction joint ventures formed and

operated by Australian and British contracting organizations. As per the literature

study, however, SEM technique has not been widely applied in the construction

related research.

SEM analysis is discussed in Chapter 6.

Questionnaire Survey Data Analysis Synthesis and Framework for Further

Research

Questionnaire survey data analysis was quantitative data analysis. The significance

of the technical, managerial and perception based factors that affect ICT adoption

was analyzed. SEM analysis tested causal relationships between the quantifiable

factors affecting ICT adoption. There was inter-validation of results between the

different analyses conducted.

Data analysis led to the formulation of a framework for industry level benchmarking

of ICT adoption for the building project management. The framework was finalized

and validated through semi-structured interview survey. The objective of this

framework is to:

• define the method of measurement of the extent of ICT adoption for building

project management by construction organizations. This tool should enable

organizations to measure their ICT adoption and align it with their business

objectives.

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• help in defining levels of ICT adoption or provide the rating as low, medium

or high. These levels are with reference to the Indian construction industry as

the questionnaire survey has identified status of ICT adoption in the Indian


• help in measuring efficiency of organizations in implementing their strategies

for ICT adoption.

• study social and cultural factors affecting ICT adoption for the building

project management.

3.5.3 Semi-Structured Interview Survey (Organization level)

Semi structured Interviews were selected over unstructured interviews, as there was a

framework to be validated and compared with unstructured ones; semi-structured

interviews can focus on what the interviewer expects to acquire. Semi-structured

interviews provide an opportunity to collect a rich set of data as they provide an

opportunity:

• to the interviewees or respondents to hear themselves ‘thinking aloud’ about

the things they may not have previously thought about (Saunders et al. 2000,

p.242-270).

• to the researchers to adapt the questions as necessary, clarify doubts, and

ensure that responses are properly understood by repeating or rephrasing the

questions (Frey and Oishi 1995).

• to the researchers to obtain spontaneous responses to various questions and

issues.

• to the researchers to collect supplementary information about the

respondents’ personal characteristics and environment. This information is

often of great value in interpreting results (Saunders et al. 2000, p.242-270).

Semi structured interviews were conducted in 3 organizations, one organization each

from the respondents of each group of the surveyed organizations. The criterion for

selection of the organizations was their extent of ICT adoption as assessed from their

responses to the questionnaire survey. Organizations with higher ICT adoption were

selected and approached. Respondents were senior level executives. They were

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contacted personally and explained about the objective of the interview. After

receiving consent from them, the interview was conducted at a convenient time.

Semi-structured interviews were conducted with the following objectives:

• Discussion of the benchmarking framework.

• Rating of the organizations as per the suggested framework.

• Measurement of the efficiency of the organizations for implementing their

strategies for ICT adoption. It was conducted through Data Envelopment

Analysis (DEA) technique.

3.5.3.1 Benchmarking Framework Structure Attributes

Benchmarking study at the industry level requires an analysis of the existing

activities and practices in the industry with respect to the mission-critical processes

or the processes under study and requires academic and industrial knowledge.

Processes within the organizations should be measurable for comparison between

different organizations. Benchmarking study should be stakeholder driven, forward

looking and focused on quality (Construct IT report 1998). It should also identify the

appropriate basis for measurement (Bendell et al. 1998).

The key to any successful measurement system is simplicity, both in the nature of the

individual measures and in the means by which it is unified into a coherent, focused

whole (Bendell et al. 1998). A unified approach to measurement can be obtained by

identifying measurable critical success factors with respect to the processes under

study. These are the key indicators directly linked to those processes and should be

between 6-12 (Bendell et al. 1998). To effectively support improvement initiatives,

the measurement system should include a mixture of leading and lagging indicators

(Costa et al. 2006). According to Anderson and McAdam (2004), the use of

benchmarking should be extended beyond the comparison of lagging performance

measures (Costa et al. 2006). Although lagging indicators are important to assess the

achievement of an organization’s strategic objectives, leading performance measures

are also necessary because they are proactive and preventive in nature. Leading

measures help to anticipate the impact on the future desired results (Manoochehri

1999 cited in Costa et al. 2006).

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Developed measurement models should be multidimensional and facilitate alignment

of the performance indicators with an organization’s strategic objectives and should

link the indicators with key managerial processes of the organization (Costa et al.

2006). Thus, measurement needs to be undertaken through a structured methodology

as indicators and measures reflect the goals and objectives of each level of

assessment in the organizations. To avoid relying only on subjective assessment,

measures that extend beyond typical perceptions of performance must be included.

Thus, each indicator should have one or more performance measures that allow

quantitative data to be obtained for a particular process (Stewart and Mohamed

2001). Such composite indicators provide a powerful and reliable summary of the

measured data. Such indicators can also improve the reliability of the data in terms of

random variation associated with each term or measurement as random variation

tends to average to zero when summed across all the terms in the indicator.

In due course of time, the dynamic industry situation may change the gap between

the benchmarked organization and the best practice, may reposition the best practice

organization and may even change the best practice parameters. Thus, the framework

is required to be reviewed periodically in order to make suitable changes as well as

for introducing the new relevant factors and for omitting the factors that are not

relevant, or when periodic recalibration of a benchmarking framework is required.

Eight critical success factors or the performance/measurement indicators were

established after the questionnaire survey data analysis discussed in Chapters 5 and 6

and ongoing literature survey. Each indicator is measured by one or more

performance measures derived from the questionnaire as the questionnaire survey

data analysis provides the validity, relevance and significance of these performance

measures. The measures have their own metrics, data sources and minimum and

maximum limits relevant to the industry standards and established after the

questionnaire data analysis. The measures reflect the ‘Best Practice’ in the Indian

Construction industry. The goal was to develop generic measures that would be

meaningful to both, the participating organizations and the industry as a whole, and

would be repeatable to simplify the process of recalibration.

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The benchmarking framework development and its attributes are discussed in detail

in Chapter 7.

3.5.3.2 Benchmarking Framework Administration

Researchers have identified different models of the benchmarking process derived

from the essential features of the Deming cycle, namely focus, plan, do, and review.

Hamilton and Gibson Jr. (1996) have used the four-phase model of planning,

analysis, integration and action. Fong et al. (1998) have suggested a five-phase

model largely adapted from the model of Vaziri (1992) and Camp (1989b) (Fig. 3.1).

It includes an additional maturity phase. All the phases as explained by Fong et al.

(1998) are described below:

Planning phase includes identifying the processes to be benchmarked, establishing

the variables and measures (metrics) based on the current practices, finalizing the

data collection methodology, collecting the internal and external data, summarizing

and documenting the findings.

Analysis phase assesses an organization’s current state relative to that of the best

practice organizations and results in highlighting major opportunities, threats,

strengths, and weaknesses. It helps to discover the activities that require

improvement and to project future performance levels to be achieved through such

efforts. It requires a complete study of the organization. Since the desirable process

or function used by the best practice organization may not be transferable, it is the

organization’s effort to make sure that the transfer is feasible. After the appropriate

goals and changes are determined, the process of change can begin.

Integration phase includes integrating the analysis findings into the working system

of the organization. Findings must be accepted by both the operational and the

management personnel. The management committed to benchmarking would provide

adequate resources and supports for implementing the benchmarking programs.

Employee commitment from an operational level will facilitate benchmarking since

employees are the ones who carry out the benchmarking practices. Coordinating with

them closely not only helps them in knowing the progress of benchmarking

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implementation but also ensures their continuous support. This phase also includes

the establishment of functional goals, which target the benchmarking practices, and

creating the clear, quantifiable, and attainable obje ctives that support the

achievement of those goals.

Action phase induces the desired changes in the benchmarked organizations and

consists of three steps: developing action plans to reach the functional goals;

implementing specific action plans and monitoring their progress; and recalibrating

benchmarking measures.

Maturity phase includes assessing whether the newly benchmarked practices have

been fully integrated into the organization’s working and whether the organization

has been able to achieve the set objectives and goals, thus, establishing a new

benchmarking cycle.

Love and Smith (2003) have proposed a three-phase system of benchmarking

(organizations evaluating themselves against the best practice organizations in the

industry), bench learning (or ganizations determining how they can learn from the

best practice organizations) and bench action (actual implementation of the planned

changes through development of the skills of staff, training and organizational

development).

There is an overlap between the essential features of the two models discussed above

except for the focus on communication and commitment stressed in the model of

Fong et al. (1998). They have explained that communication of the benchmarking

findings to all the employees will help in gaining support, commitment, and

ownership.

Bench learning or the Analysis phase would allow migration of the benchmarking

initiatives from performance measurement processes to performance management

systems as suggested by Costa et al. (2006). It requires understanding how

performance can be improved and, as per Bendell et al. (1998), it requires qualitative

assessment.

Bench action or the Integration, Action and Maturity phases can generate innovation

in the industry and as per Garvin (1993) it can happen in a receptive environment. It

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requires national industry level initiatives to generate a receptive environment in the

industry (Costa et al. 2006). It could be a transnational as well as an international

initiative.

For the transnational initiative, benchmarking clubs can be initiated. These are

forums for individuals to learn from the best practices within a local support network

(Constructing Excellence 2004 cited in Costa et al. 2006), and for providing learning

opportunities to participating organizations by identifying and sharing their own and

other organizations’ best practices, gaps in the practices and methodology for

improvement. Inclusion of more organizations into the process would lead to

enhanced brainstorming and collection of more useful data. It would also lead to the

Fig. 3.1: Benchmarking Process Model Sourced from (Fong et al. 1998)

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development of a vast network of partners that can be developed with a regional or

even an international outlook (Fong et al. 1998). It is equally important that the

benchmarking teams share what they have learned with the aim of creating an

atmosphere in which knowledge transfer is actively encouraged (Hinton et al. 2000

cited in Costa et al. 2006). Learning cycles are set in motion once people absorb the

transferred knowledge and apply it to their local conditions. Brewer et al. (2003)

have discussed a web-based tool for benchmarking.

For an international initiative following mechanisms have been identified: technical

visits to foreign construction organizations and projects; workshops and seminars

involving organizations from different regions of the world; and the development of

web portals that make information on managerial practices, new technologies, and

performance measures widely available (Costa et al., 2006).

In this research, the suggested Benchmarking process is derived from the above two

discussed frameworks and is divided into four phases of:

• Benchmarking and BenchMeasurement

• BenchLearning

• BenchAction

• BenchMonitoring

These are discussed in detail in Chapter 7.

3.5.3.3 Data Envelopment Analysis (DEA) Technique

DEA is a data-oriented (Li et al. 2005), non-parametric methodology based upon

Input-Output system (Chiang et al. 2006) and utilizes the application of linear

programming. It is a tool for multi-criteria-decision-making and was originally

developed for performance measurement (Ramanathan 2003, p.109). It is used for

measuring the performance efficiency of organizational units, which are termed as

Decision-Making Units (DMUs). It aims to measure how efficiently a DMU uses the

resources available to generate a set of outputs (Charnes et al. 1978 cited in

Ramanathan 2003, p.25). DMUs can include manufacturing units, departments of big

organizations, a set of organizations or even practicing individuals. A DMU has

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flexibility with respect to some of the decisions it makes, but not necessarily

complete freedom with respect to these decisions (DEA Notes). DMUs can also be

systems such as scenarios, options, etc. (Chiang et al. 2006). Most of these DMUs

are those where the measurement of performance efficiency is difficult

(Ramanathan 2003, p.26). It has been successfully employed for assessing the

relative performance of a set of DMUs that use a variety of identical inputs to

produce a variety of identical outputs. The principles of DEA date back to Farrel

(1957). The recent series of discussions on this topic started with the article by

Charnes et al. (1978), and Cooper et al. (2000) provide recent and comprehensive

material on DEA (Ramanathan 2003, p.25).

In DEA, the performance of DMUs is assessed using the concept of efficiency or

productivity, which is the ratio of the total outputs to the total inputs. For such a

comparison to occur, a set of criteria must be established, which have to be

classified as inputs and outputs (Cooper et al. 1999 cite d in Chiang et al. 2006).

The ratio of outputs to inputs for every DMU forms the basis for comparison. The

efficiencies estimated using DEA are relative i.e relative to the best performing

DMU(s). The best performing DMU is assigned an efficiency score of unity or 100%

and the performance of other DMUs varies between 0-100% relative to this best

performance. Functional specifications are avoided in expressing production

relationships between inputs and outputs (Li et al. 2005).

Efficiency = Total Outputs/Total Inputs

If all the DMUs operate in a similar environment, it is realistic to measure

performance of the studied DMUs with that of the best DMU (Ramanathan 2003,

p.28).

The analysis can be conducted mathematically as well as graphically. Models upto

two inputs and one output can be studied graphically. The DEA analysis checks

whether the DMU under consideration could improve its performance by decreasing

its input and increasing its output. The improvement is pursued until the boundary of

the convex hull of the other DMUs is reached (Fig. 3.2). A DMU which cannot

improve its performance is efficient or non-dominated, otherwise it is dominated by a

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convex combination of other DMUs. The graph of an input function and an output

function is generated. The line joining the best performing DMUs and horizontal and

vertical lines connecting them to the two axes become the ‘Efficiency Frontier’. It

represents a standard of performance that the organizations not on the frontier should

try to achieve as it forms the basis of efficiency measurement (Ramanathan 2003,

p.31). Mathematically the efficient frontier is the convex hull of the data (DEA

Notes). Such an analysis using the efficiency frontier is often termed as ‘Frontier

Analysis’ (Farrel 1957 cited in Ramanathan 2003, p.32). The efficiency frontier

envelops the available data. Hence, the term ‘Data Envelopment Analysis’, which

was coined by Charnes et al. (1978) (cited in Ramanathan 2003, p.32). As shown in

Fig. 3.2, in an example of comparing organizations A,B,C and D with two inputs of

number of employees and amount of capital employed and one output of added

value, two organizations A and C are found to be the most efficient and lie on the

efficiency frontier.

The analysis does not reflect that the performance of the best performing DMU(s)

cannot be improved. It may or may not be possible. These are the best DMU(s) with

regard to the data used for analysis (Ramanathan 2003, p.32). The performance of

all the other DMUs is assessed in relation to this best achieved performance.

Thus, relative efficiencies are calculated based on the data available and not as

absolute efficiencies.

Fig. 3.2: Graph Explaining the Concept of Efficiency Frontier Sourced from (Ramanathan 2003)

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A general mathematical formulation is needed to handle the case of multiple inputs

and multiple outputs. This mathematica l formulation was provided by Charnes et al.

(1978) in a seminal paper providing the fundamentals of the mathematical aspects of

the frontier analysis (Ramanathan 2003, p.38). When comparing all the DMUs, the

mathematical model changes to an optimization problem by setting a mathematical

model that maximizes the relative efficiency of all the DMUs subject to the original

constraints. The relative efficiencies of all DMUs are computed, which indicate their

impact levels. In some studies the DEA is also used to find a virtual DMU as the

most efficient DMU (DEA Homepage 1996 )

The DEA has been developed and modified to include the aspects of realistic

characteristics of DMUs and their inputs and outputs.

• Realistically each DMU has multiple inputs and outputs, so it is essential to

calculate a composite efficiency value. This can be achieved by assigning

some degree of relative importance to every input and output (or so-called

weight) (Chiang et al. 2006). Thus, weights can be assigned to inputs and

outputs . The weights assigned should be flexible and reflect the requirement

(performance) of the individual DMUs. If required, a unique set of weights

can also be assigned to each DMU (Ramanathan 2003, p.39).

• The DEA analysis can be conducted as ‘Output Maximization’ program as

well as ‘Input Minimization’ program. In the former, the objective function is

to maximize the weighted sum of outputs by setting the weighted sum of

inputs to unity and in the latter, the objective function is to minimize the

weighted sum of inputs by setting the weighted sum of outputs to unity

(Ramanathan 2003, p.43).

• Initially the DEA model was based on the ‘Constant Returns to Scale’ (CRS).

It signified that inputs and outputs could be scaled linearly without increasing

or decreasing the efficiency. This was considered a limitation of the DEA and

limited its applicability in early years. The CRS model is also known as CCR

(Charnes, Cooper and Rhodes) model (Ramanathan 2003, p.42-45).

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Later, modifications were done for the DEA to handle ‘Variable Returns to

Scale’ (VRS) analysis. It is discussed in Ramanathan (2003, p.67-69) as

described below. “VRS was first described in 1984 by Banker et al. (1984).

Hence it is also known as BCC (Banker, Charnes and Cooper) model. VRS

combines ‘Increasing Returns to Scale’ (IRS) and ‘Decreasing Returns to

Scale’ (DRS). IRS can be defined as a property of a production function such

that changing all inputs by the same proportion changes the output by a

greater extent than the proportional value. DRS is opposite of IRS. IRS

changes to DRS at a particular level of production as shown in Fig. 3.3. It is

also discussed that in a production process, the operations will follow IRS or

DRS (or CRS) for different ranges of output.” Same concept can be

extended to areas other than production processes, such as schools, banks,

hospitals and other categories of DMUs of the service industry.

• DEA can be applied on continuous, categorical and ordinal variables

(Ramanathan 2003, p.103).

In DEA, following constraints apply (Chiang et al. 2006):

• 0≤ Efficiency ≤ 1

• Values of all the variables (inputs and outputs) and values of the weights of

all variables for all the DMUs should be greater than zero.

• Values of all the variables must be non-negative.

Fig. 3.3: Graph Showing Production Function of CRS and IRS Sourced from (Ramanathan 2003)

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Since DEA using linear programming techniques determines a best-practice or

efficient frontier of DMUs without a priori assumptions on the underlying functional

forms, DEA has been applied to various areas of efficiency evaluation (Zhu 2002;

Chen 2003; Yun et al. 2004 cited in Li et al. 2005). DEA has been applied in many

situations such as: health care (hospitals, doctors), education (schools, universities),

banks, manufacturing, benchmarking , management evaluation, fast food

restaurants, retail stores (DEA Homepage 1996), defense bases (army, navy, air

force), tax offices, prisons, non-profit making organizations, etc. (DEA Notes).

A few of the characteristics that make DEA powerful are (DEA Homepage 1996):

• DEA can handle multiple input and multiple output models.

• It does not require an assumption of a functional form relating inputs to

outputs.

• DMUs are directly compared against a peer or a combination of peers.

• Inputs and outputs can have very different units. For example, X1 could be in

units of lives saved and X2 could be in units of dollars without requiring an a

priori tradeoff between the two.

• The analyzed data sets may vary in size. Some analysts work on problems

with as few as 15 or 20 DMUs while others are tackling problems with over

10,000 DMUs.

It has been discussed that exploring the role of the construction sector in terms of the

consumptions and inputs may help formulate strategies to maximize construction

productivity (Ganesan et al. 1996; Chiang et al. 2001 cited in Chiang et al. 2006).

With respect to the construction research: Cheng and Li (2004) have applied DEA to

evaluate a set of locations for construction projects (Chiang et al. 2006); Li et al.

(2005) have applied DEA in a longitudinal study of measurement of the productivity

of Chinese construction industry; Anderson et al. (1998) have applied DEA to

measure efficiency of franchising in the residential real estate brokerage market;

Chiang et al. (2006) have examined repercussions of consumptions and inputs placed

on the construction sector by the use of Input–Output tables and DEA; Lacouture et

al. (2007) have discussed a DEA based tool for optimizing purchasing decisions in

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B2B construction marketplaces. But, as per the literature study, DEA has not been

applied widely in the construction relate d research.

In this research study, DEA has been conducted using ‘Frontier Analyst’ software

developed by University of Warwick and Banxia Software Ltd. UK. It helped in

measurement of the efficiency of organizations in implementing their strategies for

the adoption of ICT.

The semi-structured interview data analysis resulted in benchmarking or

measurement of ICT adoption by the studied organizations for building project

management, efficiency measurement and benchmarking framework finalization.

The analysis results are discussed in Chapter 7 and the final benchmarking

framework is presented in Appendix D.

3.5.4 Case Studies (Organization level and Project level)

Case study method is a form of qualitative analysis wherein careful and complete

observation of an individual or a situation or an institution is done, efforts are made

to study each and every aspect of the concerning unit in minute details and then from

the case data, generalizations and inferences are drawn (Kothari 2005, p.113-116). It

investigates a contemporary phenomenon within its real-life context, especially when

the boundaries between the phenomenon and the context are not clearly evident

(Majumdar and Gupta 2001). It is the most common qualitative method used in the

information systems and is particularly well suited to Information Systems research,

since the object of this discipline is to study the information systems in

organizations, and the "interest has shifted to organizational issues rather than

technical issues" (Benbasat et al. 1987 cited in Majumdar and Gupta 2001). Case

studies look deceptively simple, but require thorough familiarity with the existing

theoretical knowledge of the field of inquiry by the researcher and also the skill to

differentiate significant variables from insignificant ones (Duggal et al. 2001). An

unbiased approach is mandatory.

The purpose of the case studies is, “to tell a big story through the lens of a small

case” (Tan 2004). These are conducted to focus more on the typicalness of the

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situation in each organization as focus on the typicalness leads to meaningful

generalizations and scientific abstraction whereas uniqueness would preclude these

(Majumdar and Gupta, 2001). The case study method is suited to the situations where

the researcher is attempting to answer a “how” question (Yin 1989). It is also suited

to the situations where the phenomena and the context in which they exist are

difficult to separate.

Case study approach was selected to identify the social, cultural and behavioral

issues affecting ICT adoption through the study of gaps in practice and trends

identified in Benchmarking framework analysis. It also led to the validation of the

cultural issues identified in the questionnaire survey data analysis. Case studies were

conducted through discussions with the senior executives and project managers and

the powerful SAP-LAP (Situation Actor Process – Learning Action Performance)

framework was used for analysis.

3.5.4.1 SAP-LAP Analysis Technique

SAP-LAP analysis methodology consists of two phases and provides a framework

that can be effectively applied to develop either generic or specific models of inquiry

(Sushil 2000). In SAP analysis, the system or the management context is studied

through three basic components i.e. situation, actor, and process as discussed below.

Context: Context defines the background and the environmental norms that impinge

upon the reality. The components operate it (Duggal et al. 2001).

Situation: The present status, potential for growth or decay, accelerating and

decelerating forces, present and future state of the art, etc. taken together define the

situation (Duggal et al. 2001). It primarily comprises the micro and macro

environments of the organization with respect to the problem of study. For the

discussed case studies, head offices and project site offices individually constitute the

microenvironments for the adoption of ICT and collectively these constitute the

macro environment that significantly affects the processes of ICT adoption for

building project management. The situation is affected by the external factors but has

no control on those external factors.

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Actors: The participants who influence the situation and alter it by their actions or

inaction are termed as actors (Duggal et al. 2001). An actor can be an individual, a

group, a department, or the whole organization. Actors can be internal or external.

Internal actors are the decision makers as well as day-to-day operations staff within

the organization. They control the internal processes and actions with their

knowledge, understanding and assumptions about the future (Majumdar and Gupta

2001). External Actors are the driving external agencies. Thus SAP-LAP analysis

incorporates multiple perspectives of various participating actors in the managerial

process offering learning and interpretive framework of inquiry. For the discussed

case studies, external actors are the clients, principal contractors and other such

external agencies, which are perceived to affect the adoption of ICT on building

projects managed by these organizations. Actors have the freedom of choice to some

extent.

Processes: These are the procedural steps taken by the actors with respect to the

problem of study. Any dynamic behavior that alters the situation has the potential of

being a process. Some processes are explicitly identifiable while some others will be

implicit (Majumdar and Gupta 2001). Processes are affected by cultural and human

factors.

Thus, within a system or a management context, a situation is to be dealt with by an

actor or a set of actors via a process or a set of processes (Sushil 2000). Any of the

three basic components can be the driving component. Depending upon the context,

the researcher has to study the situation, identify the relevant actors, study the

processes executed by them and identify the driving component. The three

components interact flexibly on multiple planes in the ambiguous reality and help us

in understanding the reality (Majumdar and Gupta 2001). Interplay could be due to

various reasons, for example, processes executed by a group of actors can be a

situation for the other group of actors. The freedom of choice provided by the

situation to the actors is termed as ‘external flexibility’, which varies between

different organizations. Based on the external flexibility, actors can resonate their

internal flexibility and create a rigid or a flexible process. A flexible process and

flexible actors can quickly respond and adapt to the changing situation (Ramaraj

1996).

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Study of the interplay of situation, actor, and process (SAP) leads to learning, action,

and performance (LAP) (Fig. 3.4) (Sushil 2000). Learning gained about the situation,

the actor and the processes would identify the possible actions to be taken by the

actors with respect to the impending situation, actors and processes and the expected

performance results of the system. The learning issues emphasize the typicality of the

situation as well as some features of its uniqueness (Duggal et al. 2001). The actions

would be influenced by the driving component.

The SAP-LAP paradigm synthesizes analytic as well as synthetic modes of the

system inquiry (Sushil 2000). As shown in Fig. 3.5, study of the context leads to the

analytical mode where the system is divided into three components and each

component, i.e. situation, actor and process is studied separately. It is synthesized in

Learning as the study of interplay between SAP and identification of the driving

component. Learning further synthesizes actions and the associated performances

with SAP.

Actions are expected to improve the performance by changing the system. Thus,

learning has to identify the areas having potential for change. Actions are to be

devised both for preparing for a cultural change and for initiating the structural

cha nge, so that ultimately the system remains ahead of the change rather than

becoming a follower of the change (Sushil 2000). With respect to the performance,

learning has to identify the performance indicators that will be changed and the

expected improveme nt or the setback faced as an effect of the new actions.

SAP-LAP analysis could be an ongoing enquiry within an organization, where actors

consistently evaluate situation, follow processes, take actions, learn from their

performances and depending on the results of performances either modify the

processes or follow the same processes (Majumdar and Gupta 2001). Such a dynamic

interplay of SAP and LAP will act as the basis of ongoing managerial inquiry. In

context of this research, this forms a component of the ‘BenchMonitoring’ stage of

improvement.

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SAP-LAP analysis methodology has been used extensively by researchers for the

case studies of different sectors. Majumdar and Gupta (2001) have used SAP-LAP

analysis to study initiatives of Indian car manufactures in deploying Internet and

Fig. 3.4: SAP-LAP Paradigm Sourced from (Sushil 2000)

Context

Learning

Action Performance

Synthetic

Mode

Situation Actor Processes Analytic

Mode

Fig. 3.5: SAP-LAP Paradigm Synthesizes Analytic as well as Synthetic Mode of Inquiry

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eBusiness technology, Duggal et al. (2001) have studied impact of the management

of IT on the issuance of driving license by a government agency. But, literature

review does not indicate the use of the methodology for the construction industry

research.

SAP-LAP analysis provides one of the most useful methodologies of analysis and

synthesis for the organizations, which are in the process of adaptation of a new and

complex technology (Majumdar and Gupta 2001). Also, SAP-LAP analysis is

systematic, innovative and has a holistic approach. Thus, in this research this

methodology is adopted for conducting the case studies for studying factors affecting

use of ICT for the building project management.

Case studies were conducted in three organizations in which semi-structured

interview survey was conducted. This helped in having continuity in the research

process. Discussions with the senior executives identified issues at the organization

level and discussions with project managers identified issues at the project level. The

analysis led to the formulation of social and cultural framework affecting ICT

adoption for the building project management.

Case study analysis is discussed in Chapter 7.

3.6 Data Analysis Results Synthesis Methodology and Framework for

Results Formulation

Summarization of the results includes statistical induction or statistical inference i.e.

drawing inferences for the population or the universe from the sample and gauging

the precision of the estimate (Kothari 2005). It was achieved by making quantitative

research qualitative, by converting it to cognitive research i.e. by adding knowledge

to it.

The framework for results formulation was defined by understanding Everett

Rogers’s ‘Diffusions of innovations theory’ and applying it to the research issue of

adoption of ‘ICT for building project management’.

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Rogers (1962) defines the diffusion process as a group process as it occurs within the

society; whereas, the adoption process pertains to an individual. He defines the

adoption process as the mental process through which an individual passes from first

hearing about an innovation to final adoption. In the context of this research,

adoption of ICT is at the level of organization and people, which further defines

diffusion of ICT at the industry level. It follows Rogers’s five stage model for

diffusion of an innovation (Fig. 3.6): ‘Knowledge’ i.e learning about the existence

and function of the innovation leading to ‘Persuasion’ or becoming convinced of the

value of the innovation. This helps in the ‘Decision’ of committing to the adoption of

the innovation and its ‘Implementation’. This leads to ‘Confirmation’ of its ultimate

acceptance or rejection.

This model leads to the formulation of components of ‘IT enhanced communication

protocols’ or the research parameters as initiatives for:

• Increasing ‘knowledge’ or awareness of SMEs and project managers

regarding IT tools and technologies for communication. Increasing

knowledge at the industry level for factors increasing ICT adoption at the

industry level.

• ‘Persuading’ or convincing people and organizations about benefits of ICT

over traditional methods of communication in the present scenario and

perceived increase in the value of the organizations after its adoption.

• Helping organizations take the ‘decision’ of adopting ICT and planning

required changes in the organization and ways of working.

• Helping organizations in the strategic ‘implementation’ of ICT adoption.

• Periodic evaluations of the systems for ‘confirmation’ of acceptance of ICT

adoption, upgradation of systems if required and dealing with the problems

or issues which are required to be considered.

Fig. 3.6: Rogers’s Five -Stage Model for Diffusion of Innovation

Sourced from http://eetd.lbl.gov/EA/Reports/40512/40512-3

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Rogers (1995) also defined six perceived features (STORCS) that determine

acceptance of a technology. These features would be a part of the above components.

The features are:

S - Simplicity vs. complexity of the innovation.

T - Trialability i.e. is there a chance to test the technology with the ability to reverse

the adoption?

O - Observability i.e. is there a chance to see how the innovation works for others

and observe the consequences?

R - Relative advantage i.e. is this innovation truly better than what it is replacing?

C - Compatibility i.e. does this innovation fit with values, beliefs and current needs?

S - Support.

Research analysis would lead to the defining of these features with respect to the

research problem.

3.6.1 Categorization of Organizations and People Based on ICT Adoption

As per Rogers’s ‘Diffusions of Innovations theory’, adopters of any new innovation,

technology or idea could be categorized as innovators (2.5%), early adopters

(13.5%), early majority (34%), late majority (34%) and laggards (16%). This

distribution has been shown in the form of a bell curve (Fig. 3.7). Each adopter's

willingness and ability to adopt an innovation would depend on his awareness,

interest, evaluation, trial, and adoption. This was derived from Rogers’s theory that

innovations would spread through a society in an S curve, as the early adopters select

the technology first, followed by the majority, until a technology or innovation is

common.

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Geofrey Moore (1991) has further modified this technology adoption curve (Fig. 3.8)

and discussed it in his book “Crossing the Chasm”. Grouping early majority and late

majority as pragmatists (P), Moore discusses that the most important time gap in

technology adoption is the time gap between technology adoption by early adopters

(EA) and by early majority pragmatists as many a time adoption of a technology

slows down after the early adopters stage. He has termed this time gap as ‘Chasm’

(C). As per his theory, Early adopters and Early majority are different not just

quantitatively but also qualitatively.

Application of the ‘Diffusions of Innovations theory’ to the research problem helped

in categorization of the organizations in the above discussed five groups and

Fig. 3.8: Geofrey Moore’s Modified Technology Adoption Curve Sourced from http://ist-socrates.berkeley.edu

Fig. 3.7: Rogers’s Technology Adoption Curve Sourced from www.valuebasedmanagement.net

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understanding the type of change required in these organizations for ICT adoption

(Table 3.2), which is derived from the categorization of changes in organizations as

discussed by Weippert and Kajewski (2004): “Anticipatory change i.e. when change

leaders look ahead and predict change in advance – typically most difficult to

implement yet most cost effective; Reactive change i.e. when change leaders react to

the obvious signs and signals that change is needed; and Crisis change i.e. when

signs and signals to change have multiplied and intensified to the point where the

change leaders no longer can deny them – generally the easiest to implement but at a

higher cost (Fig. 3.9)”.

The Construction industry is characterized by collaborative working and in such a

scenario, benefits are achieved through widespread adoption of the technologies. As

more organizations adopt them, the greater the potential benefits (Root and Thorpe

2001).

Research analysis has to develop a framework for industry-wide initiative for:

• Categorizing building project management organizations into early

adopters, early majority, late majority and technically averse categories with

respect to ICT adoption and providing guidelines for Industry-wide shift

from ‘late majority to early majority’ and ‘technically averse to late

majority’ categories.

• Educating organizations to go for anticipatory or reactive change and not

the ‘crisis’ change.

• Understanding the factors affecting the ‘Chasm’ period and the issues for

minimizing it as much as possible.

Fig. 3.9: Relation between Difficulties of Changing Versus Cost of Change Adapted from (Black J.S and Gregersen, H.B. 2002) in

(Weippert and Kajewski 2004)

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Table 3.2: Categorization of Organizations With Respect to Adoption of ICT and

the Type of Change Required in the Process Category Adoption attributes Change Required Innovators The enthusiasts which like technology for its own sake and pull the change

Early Adopters Individual visionary organizations which adopt an emerging technology with caution to gain a strategic advantage over their competitors

Attain the status of being industry leaders, but do not have the advantage of following established technologies.

Anticipatory Assess the new technology and adopt it. Organizations are partly ready before adoption of technology and partly get changed in the process of using the technology.

Early Majority Organizations that do not take risks of pioneering but are ready to see the advantages of tested technologies. They are the beginning of a mass market.

Follow the guidelines laid down by early adopters.

Reactive Assess use of technology on early projects. Prepare their organizations for its use and then adopt it.

Late Majority Organizations are skeptical, traditional and belong to lower socio-economic status. They dislike discontinuous innovations and believe in tradition rather than progress. They use high-technology reluctantly and will use it only when majority are using it.

Have the advantage of following established or de facto standards that have emerged by use of technology in early projects.

Reactive Assess use of technology on large number of projects. Prepare their organizations for its use and then adopt it.

Laggards/ Traditional/ Technically averse Organizations residing in the traditional areas of the industry and operating in markets where new practices are likely to be unwelcome, or where the sizes of the projects do not make high technology investment viable. They use a technology only when it has become mainstream or a tradition.

Follow the standards or guidelines most prevalent in the industry

Crisis Wait till majority of the projects would be using the technology and it becomes urgent to adopt it.

Line (1997) has applied similar theory for categorizing organizational staff with

respect to the use of new technology:

The early adapters and creative users: They are "self propelled", understand the

concepts and learn the tools on their own. They are an important resource both in the

initial phase of technology implementation and in the continuing development of the

technology. They need to be encouraged and credited for giving support. On the

other hand it is equally important that they understand that the other type of users do

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not need or want advanced options and that they do not use advanced techniques that

cause trouble.

The normal users: They understand when being told and after having some

exercise. They use the services straightforwardly but without curiosity, and they do

not "research" the new possibilities.

The late adapters: They need attention. Resistance may be caused by fear of not

being able to adapt (and thereby expose them by doing silly things), fear of their own

work position or maybe they do not agree that the company should use resources on

this new technology.

Research analysis has to develop an organizational level framework for increasing

effective adoption of ICT by:

• categorizing their staff or the people under the above discussed three groups

• understanding their specific requirements, and

• bringing maximum staff to the ‘early adapters and normal users’ category.

As per Rogers’s diffusion theory, the speed of technology adoption is determined by

two characteristics: p, which is the speed at which adoption takes off, and q , the

speed at which later growth occurs. A cost intensive technology like ICT could have

lesser p value, but once a threshhold level of organizations adopts it, the q value

would be more since this technology has a network effect, i.e. in a multi-enterprise

work like building pr ojects, adoption of ICT would lead to its adoption by other

organizations.

Research analysis would define factors that affect p and q value as these would be

the factors that would also help in minimising the ‘Chasm’ period.

3.7 Justification of the Methodology

Attempts were made to leverage opportunities available to make research practical

by blending quantitative and qualitative research. Quantitative data helped in

understanding the relationship among key research variables after empirical testing.

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Qualitative research was chosen to provide rich firsthand knowledge of the

implementation issues by substantiating the experience of the executives and is

expected to allow us to project present action with future results. Qualitative study

has also been used as a supplementary study to support the quantitative study by

filling up gaps of this study. Thus the methodology is rich in experiences and it is

complementary, considering that it has a Questionnaire Survey, a Semi-structured

interview survey, and Case studies. The methodology is supposed to provide

valuable practical insights and action ideas that can be used at all levels of industry,

organization and people in evolving and implementing strategies for enhancing

effective ICT adoption by SMEs for the building project management. The research

framework in detail is shown in Fig. 3.10. The synthesis of quantitative and

qualitative research studies was done by taking into consideration the differences and

the similarities of the conclusions of both the studies. This has helped in proposing

the validated conceptual framework for implementation.

3.8 Summary

This chapter discussed the plans and processes by which the research objectives are

achieved. It examines in detail the issues pertaining to the research design and

methodology, data collection and analysis approach, key research activities and

validation methods. Research hypotheses are formulated. Following the research

methodology, a framework for synthesis of data analysis components and results

formulation is discussed. Research methodology approach is based on the study of

issues at the levels of industry, organization and project or people. Data analysis

utilizes the ‘Principle of Triangulation’, where multiple techniques have been used

for data analysis to have a comprehensive view of the results. The implementation of

the research methodology and subsequent findings are discussed in later chapters.

Chapter 4 discusses interpretive analysis of perceived benefits conducted through

Interpretive Structural Modeling analysis.

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Chapter 4: Interpretive Structural Modeling Analysis

CHAPTER 4

INTERPRETIVE STRUCTURAL MODELING ANALYSIS

4.1 Introduction

Perceived benefits of ICT adoption for Building Project Management were identified

from Literature and after discussion with the experts from the industry and

academics. Interpretive Structural Modeling (ISM) technique was used to assess the

importance of perceived benefits based on the driving power and the dependence of

each benefit with respect to other benefits. This chapter discusses ISM analysis and

its results.

4.2 Interpretive Structural Modeling (ISM)

Interpretive Structural Modeling (ISM) is one of the tools of Interactive Management

(IM). IM tools assist research groups in dealing with complex issues (Warfield

1974). ISM transforms unclear, poorly articulated mental models of a system into

visible well-defined, hierarchical models. It is a well-known methodology for

identifying and summarizing relationships among specific elements, which define an

issue or a problem, and provides a means by which order can be imposed on the

complexity of such elements (Mandal and Deshmukh 1994). Thus, a set of different

and directly related elements are structured into a comprehensive systematic model.

The developed model is portrayed in words as well as graphically.

ISM methodology is interpretive from the fact that the judgment of the group decides

whether and how the variables are related. It is structural too, as on the basis of

relationships, an overall structure is extracted from the complex set of variables. It is

a modeling technique in which specific relationships of the variables and the overall

structure of the system under consideration are portrayed in a digraph model. ISM is

primarily intended as a group learning process, but individuals may also apply it

(Ravi and Shankar 2005).

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ISM promotes the integration of contributions from individuals with diverse views,

backgrounds, and perspectives through a process that is structured, inclusive, and

collaborative. A group of participants who are knowledgeable about the situation are

engaged in (a) collectively developing a deep understanding of the current state of

affairs, (b) establishing a clear basis for thinking about the future, and (c) producing

a framework for effective action (Warfield 1974).

There are two concepts which underlie ISM and which are essential to understanding

the ISM process and product. One is the concept of reachability and the other is the

concept of transitive inference (Watson 1978). Both the concepts are discussed in

the later sections of the chapter. Through the use of these concepts in conjunction

with the book-keeping capabilities of the computer, the ISM system offers a formal

approach to structuring complex systems, which is claimed to be more efficient and

effective than the less formal unassisted approaches (Watson 1978).

The various steps involved in the ISM technique are as follows:

Step 1: Variables affecting the system under consideration are listed, which can be

Objectives, Actions and Individuals etc.

Step 2: A contextual relationship is established among variables with respect to

which pairs of variables would be examined.

Step 3: A Structural Self-Interaction Matrix (SSIM) is developed for variables,

which indicates pair wise relationships among variables of the system

under consideration.

Step 4: Reachability matrix is developed from the SSIM and the matrix is checked

for transitivity, leading to the development of ‘Final reachability matrix’.

The transitivity of the contextual relations is a basic assumption made in

ISM. It states that if a variable A is related to B and B is related to C, then

A is necessarily related to C.

Step 5: The ‘Final reachability matrix’ obtained in Step 4 is partitioned into

different levels. Final reachability matrix is developed in its Conical form

i.e. most zero (0) variables in the upper diagonal half of the matrix and

most unitary (1) variables in the lower half.

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Step 6: Based on the relationships given in the reachability matrix and the

determined levels for each variable, a directed graph is drawn and the

transitive links are removed.

Step 7: The resultant digraph is converted into an ISM by replacing variable nodes

with statements.

Step 8: The developed ISM model is reviewed to check for conceptual

inconsistency and necessary modifications are made.

4.3 Analysis

4.3.1 Research Variables

In this research study, variables are the identified perceived benefits categorized

under four groups. Benefits related to: measures of Project Success, effective Team

Management, effective use of Technology, and increased Organizational Efficiency.

The identified perceived benefits are shown in Table 4.1.

4.3.2 Structural Self-Interaction Matrix (SSIM)

ISM methodology suggests the use of the expert opinions based on various

management techniques such as brainstorming, nominal technique, etc., in

developing the contextual relationship among the variables (Ravi and Shankar 2005).

It can be used to develop several types of structure, including influence structures

(e.g., "supports," or "aggravates"), priority structures (e.g., "is more important than,"

or "should be learned before"), and categorizations of ideas (e.g., "belongs in the

same category with") (Warfield 1974).

After consultation and discussions with the experts from the industry and academics,

contextual relationships among the benefits were identified. For analysis, a

contextual relationship of ‘leads to’ type was chosen. This means that one variable

leads to another variable. Following four symbols were used to denote the direction

of relationship between the benefits (i and j):

V: Benefit i will help achieve Benefit j

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A: Benefit i will be achieved by Benefit j

X: Benefits i and j will help achieve each other

O: Benefits i and j are unrelated.

Table 4.1: Perceived Benefits of ICT Adoption for Building Project

Management Benefits related to measures of Project Success

1 Project completion as per the estimated time

2 Project completion as per the estimated budget

3 Project completion as per the specifications

4 Life cycle concept becomes a competitive factor

5 Project information obtained in real time

6 Richer information made available to managers

7 Less time spent in query and approval process

8 Effective change management

9 Reduced risk of errors and rework on projects

10 Effective concurrent construction management

11 A complete log of all communications maintained for tracking purposes

12 Effective material procurement and management

13 Effective contract management

14 “One-source” documentation archive maintained for clients

15 Client satisfaction

16 Reduced administrative costs of document handling and distribution to multiple parties

17 Project managers spend more time on managerial work

Benefits related to effective Team management

18 Effective collaboration and coordination between project team members

19 Effective communication management between project team members

20 Greater management control

21 Effective joint decision making

22 Motivation of the workforce

Benefits related to effective use of Technology

23 Increased information portability in the ICT environment

24 Reduced hard copy storage of documents/drawings

25 Flow of accurate information

26 Ease of retrieval of information

27 Improved capability of the system to cross reference to other correspondence

28 Multilocational availability of information

Benefits related to increased Organizational Efficiency

29 Increase in overall organizational efficiency

30 Better information assessment and management within the organization

31 Useful information compiled and disseminated to other projects

The following description explains the use of relationships V, A, X and O in the

SSIM (Table 4.2):

i. Benefit 11 helps achieve Benefit 27. This means that when ‘a complete log of

all communications is maintained for tracking purposes’ it ‘improves the

capability of the system to cross reference to other correspondence’. Thus the

relationship between Benefits 11 and 27 is denoted as ‘V’ in the SSIM.

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ii. Benefit 21 can be achieved by Benefit 23. This means ‘Increased information

portability in the ICT environment’ helps in ‘effective joint decision making’.

Thus the relationship between Benefits 21 and 23 is denoted as ‘A’ in the

SSIM.

iii. Benefits 20 and 21 help achieve each other. This means ‘greater management

control’ helps in achieving ‘joint decision making’ and vice-e-versa. Thus the

relationship between Benefits 20 and 21 is denoted as ‘X’ in the SSIM.

iv. Benefits 1 and 24 are not related. This means that there is no direct relation

between ‘Project completion as per the estimated time’ and ‘reduced hard

copy storage of documents/drawings’. Thus the relationship between Benefits

1 and 24 is denoted as ‘O’ in the SSIM.

Similarly relationships between all the benefits have been identified and denoted in

the SSIM.

4.3.3 Reachability Matrix

SSIM is transformed into a binary matrix, called the initial reachability matrix by

substituting V, A, X, O relationships by 1 and 0 as per the case. The rules for the

substitution of 1 and 0 are as follows:

1. If (i, j) entry in the SSIM is V, then (i, j) entry in the reachability matrix

becomes 1 and the (j, i) entry becomes 0.

2. If (i, j) entry in the SSIM is A, then (i, j) entry in the reachability matrix

becomes 0 and (j, i) entry becomes 1.

3. If (i, j) entry in the SSIM is X, then both (i, j) and (j, i) entries in the

reachability matrix become 1.

4. If (i, j) entry in the SSIM is O, then both (i, j) and (j, i) entries in the

reachability matrix become 0.

The final reachability matrix is obtained by checking for transitivities as explained in

the Step 4 above (Sec. 4.2). Table 4.3 shows the ‘Initial Reachability Matrix’ and

Table 4.4 shows the ‘Final Reachability Matrix’. In this table, the driving power and

dependence of each benefit are also shown. The driving power of a benefit is the

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total number of benefits, which it may help achieve including itself. The dependence

of a benefit is the total number of benefits that may help in achieving it.

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4.3.4 Level Partitions

From the final reachability matrix, reachability and antecedent set (Warfield 1974)

for each benefit are found. The reachability set for a particular variable consists of

the variable itself and the variables it drives. The antecedent set consists of the

variable itself and the variables on which it depends. Subsequently, the intersection

of these sets is derived for all the benefits. The variable(s) for which the reachability

and the intersection sets are the same are given the top-level in the ISM hierarchy, as

they would not help achieve any other variable above their own level. After the

identification of the top-level variables, these are discarded from the other remaining

variables (Ravi and Shankar 2005). From Table 4.5, it is seen that ‘Project

completion as per the estimated time’ (Benefit 1), ‘Project completion as per the

estimated budget’ (Benefit 2), ‘Project completion as per the specifications’ (Benefit

3), ‘Effective contract management’ (Benefit 13), ‘Client satisfaction’ (Benefit 15)

and ‘Motivation of the workforce’ (Benefit 22) were found at Level I. Thus, these

benefits are positioned at the top of the ISM model. Table 4.6 shows the levels for

each benefit obtained after 11 iterations. Tables of iterations II to XI are shown in

Appendix B.

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Table 4.6: Levels of Benefits Levels Benefits Types

1 Project completion as per the estimated time Projects Related

2 Project completion as per the estimated budget Projects Related

3 Project completion as per the specifications Projects Related

13 Effective contract management Projects Related

15 Client satisfaction Projects Related

I

22 Motivation of the workforce Team Management Related

4 Life cycle concept becomes a competitive factor Projects Related

10 Effective concurrent construction management Projects Related

II

16 Reduced administrative costs of document handling and

distribution to multiple parties

Projects Related

12 Effective material procurement and management Projects Related III

24 Reduced hard copy storage of documents/drawings Technology Related

8 Effective change management Projects Related

9 Reduced risk of errors and rework on projects Projects Related

18 Effective collaboration and coordination between project

team members

Team Management Related

20 Greater management control Team Management Related

21 Effective joint decision making Team Management Related

IV

17 Project managers spend more time on managerial work Projects Related

6 Richer information made available to managers Projects Related

30 Better information assessment and management within

the organization

Organization Related

V

31 Useful information compiled and disseminated to other

projects

Organization Related

5 Project information obtained in real time Projects Related VI

7 Less time spent in query and approval process Projects Related

25 Flow of accurate information Technology Related VII

27 Improved capability of the system to cross reference to

other correspondence

Technology Related

VIII 14 “One-source” documentation archive maintained for

clients

Projects Related

11 A complete log of all communications maintained for

tracking purposes

Projects Related IX

19 Effective communication management between project

team members

Team Management Related

28 Multilocational availability of information Technology Related X

29 Increase in overall organizational efficiency Organization Related

23 Increased information portability in the ICT

environment

Technology Related XI

26 Ease of retrieval of information Technology Related

4.3.5 Developing Conical Matrix

A conical matrix is developed by clustering benefits at the levels achieved, across

rows and columns in the final reachability matrix. Table 4.7 shows the final

reachability matrix in the conical form.

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4.3.6 ISM Based Model

The identified levels help in building the digraph and the final model of ISM (Ravi

and Shankar 2005). Based on the conical form of reachability matrix, the initial

diagraph including transitive links is obtained. After removing the indirect links, the

final diagraph or ISM based model is obtained. Fig. 4.1 shows the final ISM based

model. It is observed that ‘Increased information portability in the ICT environment’

(Benefit 23) and ‘ease of retrieval of information’ (Benefit 26) form the base of the

ISM hierarchy and ‘client satisfaction’ (Benefit 15) and ‘motivation of workforce’

(Benefit 22) are at the top and reflect the effectiveness of all the benefits.

If Benefit 23 is achieved, it leads to ‘increase in overall organizational

efficiency‘(Benefit 29) and in ‘maintaining a complete log of all communications for

tracking purposes’ (Benefit 11), which further helps in ‘flow of accurate information’

(Benefit 25), ‘improved capability of the system to cross reference to other

correspondence’ (Benefit 27) and ‘less time spent in query and approval process’

(Benefit 7).

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Benefit 23 and 26 help in achieving ‘effective communication management’ between

project team members (Benefit 19). ‘Effective communication management’ leads to

‘maintaining a complete log of all communications’, ‘improved capability of the

system to cross reference to other correspondence’ (Benefit 27) and ‘flow of accurate

information’ (Benefit 25). Multilocational availability of information (Benefit 28)

and Benefit 19 are interdependent and Benefit 28 also helps in ‘maintaining a

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complete log of all communications’ and ‘improved capability of the system to cross

reference to other correspondence’.

Benefit 11 helps in ‘providing clients with a complete one source documentation

archive’ (Benefit 14), which further helps in ‘compilation of useful information for

other projects’ (Benefit 31).

Benefit 25 and 27 are not dependent on each other, but collectively help in

‘providing richer information to managers for decision making’ (Benefit 6), which

helps in ‘improved information assessment and management within the organization’

(Benefit 30), which also helps in achieving Benefit 31 and this further leads to

Benefit 6 since information from previous similar projects always helps the managers

to plan the projects better.

‘Effective communication management’ helps the project team to ‘obtain the project

information quicker and in real time’ (Benefit 5) which further improves the ‘query

and approval process’ that is also affected by Benefit 25 and 27. Benefit 5 also

affects Benefit 27, but has gone up one level in the ISM model because ‘improved

query and approval process’ (Benefit 7) is affected by ‘improved capability of the

system to cross reference to other correspondence’ (Benefit 27) but does not affect it

even indirectly.

Benefit 5, 6, 7 and 19 are interdependent to ‘effective collaboration and coordination

between project team members’ (Benefit 18) and are at lower levels in the ISM

model because they also collectively help in achieving ‘better information

assessment and management within the organization’ (Benefit 30), which further

affects Benefit 18.

Benefit 6, 30 and other related benefits help the ‘managers to spend more time on

managerial work’ (Benefit 17), which further helps in ‘effective change

management’ (Benefit 8) leading to ‘reduced risk of errors and rework on the

projects’ (Benefit 9), which is a measure of ‘effective collaboration and coordination

between the project team members’ (Benefit 18), but is also helped by it. Benefit 18

and ‘effective joint decision making’ (Benefit 21) are interdependent and help in

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achieving ‘greater management control’ (Benefit 20). ‘Effective joint decision

making’ helps in improving the ‘query and approval process’ (Benefit 7), but is two

levels above it in the ISM model, because Benefit 7 affects Benefits 6 and 30 which

further help in achieving ‘effective joint decision making’.

‘Effective change management’, ‘greater management control’ and other benefits

help in ‘effective material procurement and management’ (Benefit 12), which further

helps to complete the project within the estimated time (Benefit 1) and cost (Benefit

2) and ‘effective contract management’ (Benefit 13), which further help in achieving

increased ‘client satisfaction’ (Benefit 15). ‘Effective communication management’

(Benefit 19) reduces the ‘hard copy filing/storage of documents/drawings’ (Benefit

24), which further helps in reducing the ‘administrative cost of document handling

and distribution to multiple parties’ (Benefit 16) and reducing the project cost

(Benefit 2). These two benefits help in achieving increased ‘client satisfaction’.

‘Effective collaboration and coordination’ and other benefits help in multiple design

alternatives to be assessed leading to ‘Life cycle concept becoming a competitive

factor’ (Benefit 4), which helps in completing the project in estimated cost (Benefit

2) and leads to ‘Client satisfaction’. ‘Effective change management’, ‘reduced risk of

errors’ and other benefits lead to application of ‘concurrent construction

management’, which further helps in completing the ‘project on time’, ‘effective

contract management’, ‘increased client satisfaction’ and also leads to ‘motivation of

the workforce’ (Benefit 22).

‘Effective change management’, ‘reduced risk of errors’ and other benefits also lead

to completing the project ‘as per the specifications’ (Benefit 3), which ‘satisfies the

client’ and ‘motivates the workforce’. Project completion on time also increases the

chances of ‘Project completion within the estimated cost’ and successful project

completion is an indication of ‘effective contract management’ and satisfies the

client and motivates the workforce for future projects.

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4.4 MICMAC Analysis

The objective of the MICMAC analysis is to analyze the driving power and the

dependence of the variables (Mandal and Deshmukh 1994). Driving power and

dependence of each benefit is shown in the final reachability matrix (Table 4.4).

The benefits are classified into four clusters (Fig. 4.2). The first cluster consists of

the ‘autonomous benefits’ that have weak driving power and weak dependence.

These benefits are relatively disconnected from the system, with which they have

only few links, which may be strong. Benefits 14 (“one source” documentation

archive maintained for clients) and 24 (reduced hard copy storage of

documents/drawings) come under this category. Second cluster consists of the

dependent benefits that have weak driving power but strong dependence on other

benefits. These benefits primarily come at the top of the ISM model. Top level

benefits in the ISM model like ‘Client satisfaction’ (15), ‘motivation of the

workforce’ (22), ‘effective contract management’ (13), ‘project completion as per the

estimated time, budget and specifications’ (1, 2 and 3) etc. come under this category.

Third cluster has the linkage benefits that have strong driving power and also strong

dependence. These benefits are unstable because of the fact that any action on these

benefits will have an effect on other benefits and also a feedback on themselves.

Primarily middle level benefits like ‘effective collaboration and coordination’ (18)

and ‘effective communication management between project team members’ (19)

come under this category because these benefits are dependent on other benefits but

also drive top-level benefits. Fourth cluster includes the independent benefits having

strong driving power but weak dependence. These benefits primarily lie at the

bottom of the ISM model like ‘ease of retrieval of information’ (26) and

‘multilocational availability of information’ (28).

The benefits, which lie in the third cluster, need special attention and proactive

attention from the management, since these have high driving power but they are

also dependent on other benefits.

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4.5 Discussion and Hypotheses Formulation

The developed ISM model provides a structure to the complex issue of the

importance of perceived benefits of ICT adoption for building project management.

The ISM model shows that the project related benefits are primarily at the top of

hierarchy, team management related benefits are primarily in the middle and

technology and organization related benefits are primarily at the bottom of hierarchy.

But, organization and technology related benefits have high driving power and these

are ‘strategic benefits’ for the project team organizations. Thus organizations are

required to give more attention on strategically increasing these benefits from

application of ICT and if application of ICT for general administration in the

organization is matured, appropriate IT tools are included in the working framework

and team management issues are planned at the earlier stages of the project, then

project related benefits would be achieved by default. The four groups of benefits are

inter-related and cannot be achieved in isolation. This analysis provides a road map

to managers or project management organizations to decide that if they are planning

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ICT adoption for achieving certain benefits then what are the other driving benefits

that should be achieved prior to that and also what are the dependent benefits that

would be achieved by default.

The results are significant for SMEs because SMEs focus on short term benefits and

typically the senior management is caught up in a conflict of building up the

organization for future needs versus the current fulfillment of the contractual

obligations (Sreepuram and Rao 2006). Specifically in multiple enterprise

functioning of building project management, it is difficult to quantitatively evaluate

the benefits of ICT adoption. It requires qualitative analysis based on the perceptions

of the construction professionals. The road map provided by this analysis could form

an important component of the benefits management plan for the SMEs. The benefits

management plan comprises a range of management activities designed to ensure

that an organization realizes the benefits it plans to achieve from an investment

(Farbey et al. 1999 cited in Love et al. 2004).

Results of the ISM analysis led to the formulation of additional hypotheses of causal

relationships. Effect of ‘ICT adoption for general administration works’ on ‘ICT

adoption for building project management’ is tested through increased use of IT tools

or software for individual project management processes, thus, leading to

formulation of the following hypothesis:

HR6: Increased ICT adoption for general administration positively affects use of

advanced software for individual building project management processes.

The relations between the three factors- ‘geographical separation between project

team members’, ‘perceived benefits of ICT adoption’ and ‘perceived barriers for

effective ICT adoption’ - are also tested with ‘ICT adoption for general

administration works’. Thus, following three additional hypotheses are formulated.

HR7: Geographical separation between the project team members positively affects

ICT adoption by organizations for general administration works.

HR8: Perceived benefits of ICT adoption positively affect ICT adoption by

organizations for general administration works.

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HR9: Perceived barriers for effective ICT adoption negatively affect ICT adoption

by organizations for general administration works.

These results lead to the formulation of an additional supplementary hypothesis.

HS4: All the four groups of benefits are interrelated and cannot be achieved in

isolation.

4.6 Further Analysis

The above-developed ISM model as indicated in Fig.4.1 was based on the experts’

opinion and literature survey, as suggested in the ISM technique. It led to the

formulation of additional hypotheses of causal relationships. The structural model

generated through eight hypotheses of this group (HR2 – HR9) was tested and

finalized through ‘Structural Equation Modeling Technique’. Data for analysis was

the data collected through the questionnaire survey. The analysis is discussed in

Chapter 6. Hypothesis HS4 was tested and the results are discussed in Chapter 5.

4.7 Summary

This chapter discusses the driving power and dependence relationships between the

perceived benefits of ICT adoption for building project management. Though the

ISM model is developed on the basis of the perception of experts, it is generic and

provides a direction for strategically planning the adoption of ICT in project

management organizations. The analysis results led to the formulation of additional

hypotheses, which are tested in subsequent chapters.

Chapter 5: Questionnaire Survey Data Analysis

CHAPTER 5

QUESTIONNAIRE SURVEY DATA ANALYSIS 5.1 Introduction

In this chapter, data analysis of a questionnaire-based survey of SMEs in the Indian

construction industry is presented. The main objectives of this survey were to

examine the current practices of ICT adoption for building project management in

the Indian construction industry, test the hypotheses formulated in this research and

identify the issues that require further study. Key observations from this survey have

been reported and discussed.

Details of the questionnaire design, survey population, validation of the

questionnaire, pilot survey and survey administration are discussed in Chapter 3

(Sec. 3.5.2). The data has been analyzed with different perspectives and the relation

between the different analyses is also studied. In this chapter, office refers to the

head office of the surveyed organizations.

Levin and Rubin (1994, p.382) have indicated that there is no single standard or

universal level of significance for testing the hypotheses (Tone 2005). Level of

significance used for data analysis in this research is 0.05, which is the most common

level used, or the confidence level is 95% i.e. p< 0.05. The confidence level refers to

the expected percentage of times that the actual value will fall within the stated

precision limits (Kothari 2005, p.155).

5.2 Respondents’ Profile

Questionnaires were mailed to 372 organizations. 153 responses were received. 4

responses were partially incomplete and were considered as missing cases. Thus, 149

usable responses were received for a response rate of 40.05%. For postal surveys in

the construction industry, response rate above 30% is considered statistically viable

and satisfactory (Love and Smith 2003; Liberatore et al. 2001).

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Out of the 149 responses received, 75 were from Builders, 49 from Project

Management Consultancy organizations (PMCOs) and 25 from Architectural

organizations. Fig. 5.1 shows the distribution of respondent organizations with

respect to the type of organization. Study of the Indian construction industry

indicates that this distribution is a true representation of the population.

Fig. 5.1: Distribution of the Respondent Organizations with respect to the Type of

Organization

Builders (75)50%

Project Management Consultancy

Organizations (49)33%

Architectural Organizations

(25)17%

The targeted organizations were SMEs and based on the literature review, for the

research study, an SME is defined as an organization with staff upto 250.

Size of the organization was assessed through Section I of the questionnaire. Data for

the number of office staff and the number of staff at project sites was collected

separately. The data for each group was collected under five categories: (0-15), (16-

30), (31-45), (46-60) and (more than 60). Wherever respondents answered for the

category (more than 60), they were contacted and it was clarified that the number of

staff in that group was not more than 120. For calculations, maximum limit was

considered for first four categories and 120 for the last category. Collective data for

the office staff and the project sites staff gave the information regarding total number

of staff in the organization. Fig. 5.2 shows the distribution of the respondent

organizations with respect to the size of organizations.

51 organizations (primarily builders) have staff upto 240 and rest of the respondent

organizations have less number of staff. Thus, all the respondent organizations can

be categorized as SMEs.

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Fig. 5.2: Distribution of the Respondent Organizations with Respect to the Size of Organizations

0102030405060

upto 30 upto 45 upto 60 upto 75 upto 90 upto105

upto135

upto150

upto165

upto180

upto240

No. of Staff

No.

of O

rgan

isat

ions

Section I of the questionnaire assessed the primary mode of project execution by the

respondent organizations. Data was collected regarding the number of projects

executed by the respondent organizations as the main agency and as a sub-

contracting agency in the last 5 years. Fig. 5.3 shows this data for the respondent

organizations.

Data analysis shows that the respondent organizations have primarily executed

projects as main agencies and not as sub-contracting agencies. This proves the

assumption discussed in Chapter 2 (Sec. 2.5.3) that in the construction industry,

SMEs also manage the building projects independently. Thus, it is important to study

the ICT maturity of SMEs in the construction industry, as it would determine their

extent of ICT adoption for building project management.

Fig. 5.3: Mode of Project Execution by the Respondent Organizations (in last 5 years)

020406080

100120

0-5 6-10 11-15 16-20 more than20

No. of building projects

No.

of o

rgan

isat

ions

Building Projects Executed asmain agencyBuilding projects executed assub-contracting agency

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5.3 Data Reliability

It is important to consider the respondent’s profile since data reliability is related to

the data source and the identification of the position held by the person who

completed the questionnaire (Oppenheim 1992 cited in Love and Smith 2003). Thus,

it was considered important that the respondents had detailed knowledge about

building project management and the processes and associated tools utilized by their

organization for the same. It could be assessed through respondents’ years of

experience in the construction industry and could be achieved by contacting senior

executives directly for the response. Section IV of the questionnaire provided data

regarding respondents’ years of experience in the construction industry. Ranking was

done in five groups. Fig. 5.4 shows the distribution of respondents with respect to

their number of years of experience.

Fig. 5.4: Distribution of the Respondents with Respect to Number of Years of Experience

0-10yrs13%

11-20yrs45%

21-30yrs30%

31-40yrs9%

more than 40yrs3%

Minimum experience was of 5 years. 13% respondents had experience upto 10 years,

12% had more than 30 years of experience and majority of the respondents (75%)

had 11-30 years experience. Thus, it is assumed that the majority of the respondents

were middle to senior level executives and the data is considered reliable.

For statistical data reliability and internal

consistency, responses of each group of data

from the questionnaire were tested through

Cronbach’s alpha (George and Mallery

1999). The values were greater than or

equal to 0.70 and α values of 0.7 or above

Table 5.1: Cronbach’s Alpha Values Cronbach's alpha (α) Section I (Q1-Q4) 0.72 Section I (Q5) 0.90 Section II 0.92 Section III (Barriers) 0.81 Section III (Benefits) 0.83 Section III (Enablers) 0.77 Section III (Drivers) 0.70

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indicate a reliable measurement instrument or reliability coefficient (Carmines and

Zeller 1979 cited in Prahinski and Benton 2004; Nunnaly 1978 cited in Santos 1999)

even though lower thresholds are also sometimes used in the literature (Nunnaly

1978 cited in Santos 1999). α values for each group of data are presented in Table

5.1.

5.4 Hypothesis Testing

For a quick reference of the proposed hypotheses, each of the hypotheses is

presented before it is tested.

5.4.1 Hypotheses Determining Dimensions of Qualitative Factors

5.4.1.1 Hypothesis HD1

‘For building project management, collaborative use of ICT is not as prevalent as the

internal use of ICT within the organizations.’

Effective ICT adoption for project management requires collaborative use of ICT

between different organizations. Through Section II of the questionnaire, data was

collected for the communication methods utilized for each identified project

management process. Communication was categorized into four groups: within

office (ict_off), between office and site (ict_site), between office and clients or

consultants (ict_clnt), and between office and contractors or material suppliers

(ict_cont). Communication methods were categorized in three groups: (hard copy),

(hard copy and e-mail), and (only e-mail) with scores 1, 2 and 4 respectively.

Further, to represent the usage of the multiple communication methods for a process,

respondents could identify different communication methods utilized for different

percentages of projects, through a five point interval scale.

Use of ICT was found to be different for each category and the ranking was found

significant (p<0.001) through Non Parametric Freidman test (Table 5.2).

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Table 5.2: Non Parametric Friedman Test for Ranking Extent of Use of ICT between Different

Groups Group Mean Rank Test Statistics

ict_off 3.68 N 149.00 ict_site 3.13 Chi-Square 328.21 ict_clnt 1.41 df 3.00 ict_cont 1.78 Asymp. Sig. 0.00

Further, results of the first two groups were summarized as ‘Internal use of ICT

within organizations (ict_int)’ and the results of the last two groups were

summarized as ‘External or collaborative use of ICT (ict_ext)’. It was found that

only in about 3% (4 no.) of the surveyed organizations, external or collaborative use

of ICT was more than the internal use of ICT. But, in rest 97% (145 no.) of the

organizations, internal use was significantly more. Through Wilcoxon signed ranks

test, this analysis was found significant (p<0.001) (Table 5.3).

Table 5.3: Wilcoxon Signed Ranks Test for Comparing Internal and External/collaborative use of ICT for Building Project Management

Ranks N Mean Rank Sum of Ranks

Test Statistics (Based on positive ranks)

Negative Ranks 145a 76.91 11152.00 ict_ext - ict_int Positive Ranks 4b 5.75 23.00 Z -10.55

Ties 0c Asymp. Sig.

(2-tailed) 0.00

ict_ext - ict_int

Total 149.00 a: ict_ext < ict_int b: ict_ext > ict_int c: ict_ext = ict_int

It proves hypothesis HD1 that for building project management, collaborative use of

ICT is not as prevalent as the internal use of ICT within the organizations.

5.4.1.2 Hypothesis HD2 and HD3

HD2: ‘It is perceived that education of users for ICT adoption and its benefits is

important for increasing effective ICT adoption in building projects.’

HD3: ‘It is perceived that more accessible and less costly ICT training for

executives is important for increasing effective ICT adoption in building

projects.’

Data for the above hypotheses was collected through Section III of the questionnaire

as perceived enablers for effective ICT adoption for building project management.

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The respondents’ perception for each identified enabler was rated on a five-point

Likert scale. On this scale, 1 and 5 corresponded to ‘not important’ and ‘most

important’ respectively, whereas 3 corresponded to ‘moderately important’. The

hypotheses were tested through one-sample t-test (Table 5.5) and the results were

significant (p<0.001). Table 5.4 shows the mean and standard deviation of the test

variables and indicates that ‘education of users for effective use of ICT and its

benefits’ has been considered more important than ‘more accessible and less costly

ICT training’.

Table 5.4: Descriptive Statistics of Test Variables of Hypotheses HD2 and HD3

One-Sample Statistics MeanStd. Deviation Std. Error Mean

Education of users for effective use of ICT and its Benefits 4.23 0.89 0.07 ICT Training to be more accessible and less costly 4.02 1.19 0.10

Table 5.5: t-test results for Hypotheses HD2 and HD3 Test Value = 3

95% Confidence Interval of the

Difference t df

Sig. (2-tailed)

Mean Difference Lower Upper

Education of users for effective use of ICT and its benefits

16.97 148 0 1.235 1.09 1.38 ICT Training to be more accessible and less costly

10.43 148 0 1.02 0.83 1.21 It proves hypothesis HD2 and HD3 that ‘Education of users for effective use of ICT

and its benefits’ and ‘More accessible and less costly ICT training for executives’ are

important enablers for increasing effective ICT adoption for building project

management. However, more important is providing facilities for educating users for

effective use of ICT and its benefits.


‘Majority of SMEs does not have a communication management strategy within the

organization.’

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Data for this hypothesis was collected through Section I of the questionnaire.

Respondents provided data in (Yes/No) format. Table 5.6 shows that about 58%

organizations do not have a communication management strategy within the

organization. Only about 42% organizations have a communication management

strategy within the organization.

Table 5.6: Organizations having Communication Management Strategy

within the Organization Frequency % Cumulative %

No 86.00 57.72 57.72 Yes 63.00 42.28 100.00

Total 149.00 100.00

It proves hypothesis HD 4 and this result is further validated through hypothesis

HD5.


‘Adoption of ICT by an SME is project specific and not organization specific.’

The data for this hypothesis was collected through Section I of the questionnaire.

Response to the question: ‘Extent of ICT adoption varies between different projects’

was provided in (Yes/No) format. Table 5.7 shows that in 79 (about 53%)

respondent organizations, ICT adoption is project specific as it varies between

different projects.

Table 5.7: Extent of ICT Adoption Varies between Different Projects Frequency % Cumulative %

No 70.00 46.98 46.98 Yes 79.00 53.02 100.00

Total 149.00 100.00

Further data was collected to understand that differential usage of ICT in projects

was due to ‘variable ICT capability of associating project team organizations’ or

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‘variable requirement of clients for use of ICT on projects’. It was found that out of

the 79 organizations, in 45 (30% of total) organizations it was primarily due to the

variable requirement of clients for use of ICT on projects, in 11 (8% of total)

organizations it was primarily due to the variable ICT capability of associating

project team organizations and in 23 (15% of total) organizations both the factors

were equally dominant. Distribution of the organizations for variable use of ICT is

shown in Fig. 5.5. This result was found significant (p<0.001) through non-

parametric Wilcoxon Signed ranks test (Table 5.8).

Fig. 5.5: Distribution of organizations (in %) for variable ICT adoption on Building Projects

47%30%

8%

15%

53%

In 47% orgs. extent of ICTadoption is org. specificand remains primarily samefor all the projectsIn 30% orgs. it varies dueto variable requirement ofclients

In 8% orgs. it varies due tovariable ICT capability ofassociating project teamorgs.In 15% orgs. it variesbecause both the abovefactors have equal effect

The above analysis proves hypothesis HD5 that ‘adoption of ICT by an SME is

project specific and not organization specific’ and it validates hypothesis HD4 that

the majority of SMEs does not have a communication management strategy. It also

highlights the issue that the extent of use of ICT on the building projects is primarily

defined by the clients’ requirements. This factor is studied further in the subsequent

sections.

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Table 5.8: Wilcoxon Signed Ranks Test for Comparing Reasons for Differential ICT Adoption on Building Projects

Ranks Test Statistics N Mean Rank

Sum of Ranks (Based on Negative Ranks)

If Yes, due to variable requirement of clients

for use of ICT on projects - If Yes, due

to variable ICT capability of

associating project team organizations on

projects Negative Ranks 11a 35.95 395.50

If Yes, due to variable requirement of clients

for use of ICT on projects - If Yes, due to variable ICT capability of associating project team organizations on

projects Positive Ranks 45b 26.68 1200.50 Z -3.38

Ties 23c

Asymp. Sig. (2-tailed) 0.00

Total 79.00 a: If Yes, due to variable requirement of clients for use of ICT on projects < If Yes, due to variable ICT capability of associating project team organizations on projects b: If Yes, due to variable requirement of clients for use of ICT on projects > If Yes, due to variable ICT capability of associating project team organizations on projects c: If Yes, due to variable requirement of clients for use of ICT on projects = If Yes, due to variable ICT capability of associating project team organizations on projects


‘Personal meetings are still preferred over teleconferences and other e-meeting

solutions for managing building construction projects.’

Data for the above hypothesis was collected through Section I and Section II of the

questionnaire. For the meetings conducted for identified general administration

processes and project administration processes, data was collected for the mode of

conducting meetings, as personal meetings (per_mtng) and as teleconferences

(tel_mtng). Questions were structured in a way that for each process, respondents

could provide multiple responses (ref. Appendix A). For each organization, scores

for personal meetings and teleconferences for all the identified processes were

aggregated and compared. Data analysis showed that only in one organization, extent

of teleconferences exceeded that of the personal meetings, but otherwise

organizations primarily conduct personal meetings. This result was found significant

(p<0.001) through the non-parametric Wilcoxon Signed ranks test (Table 5.9).

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Table 5.9: Wilcoxon Signed Ranks Test for Comparing scores of Personal Meetings and Teleconferences Ranks Test Statistics(b)

N Mean RankSum of Ranks (Based on Positive Ranks) tel_mtng - per_mtng Negative Ranks 148a 75.50 11174.00 tel_mtng - per_mtng

Positive Ranks 1b 1.00 1.00 Z -10.75

Ties 0c

Asymp. Sig. (2-tailed) 0.00

Total 149.00 a: tel_mtng < per_mtng b: tel_mtng > per_mtng c: tel_mtng = per_mtng

Data was also collected to assess whether respondent organizations were conducting

meetings through videoconferencing or not (Section I). Data analysis showed that

only 7% of the surveyed organizations had conducted meetings through

videoconferencing. After discussion it was found that each of these organizations

had conducted videoconferencing only for one or two projects and primarily for

discussions with overseas material suppliers since material procurement from

overseas has increased for the projects.

The above analysis proves hypothesis HD6 that personal meetings are still preferred

over teleconferences and other e-meeting solutions for managing building projects.

5.4.2 Hypotheses of Causal Relationships – Hypothesis HR1

Hypothesis HR1 stated below is tested in this section and other hypotheses of this

group are tested through Structural Equation Modeling analysis and discussed in

Chapter 6.

‘Organizations with higher turnover have higher adoption of ICT.’

Turnover of the organizations was assessed at a five-point interval scale, the lowest

being (INR 0-2 crores or approx. 0-0.45 million US $) and the highest being (more

than INR 8 crores or approx. 1.8 million US $). Mode of communication was

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assessed as explained for Hypothesis HD1. Scores of the questions assessing

communication methods adopted for the identified general administration processes

and project management processes were aggregated under the research variable

(ict_comp). Higher aggregate indicated higher adoption of ICT. One-way ANOVA

test was conducted to assess the significance of ‘Change in level of use of ICT’ with

‘Change in turnover of the organizations’.

Study of data distribution for the turnover of the organizations (Fig. 5.6) showed that

maximum Architectural organizations are in the first category and their number

decreases in each subsequent higher category. PMCOs are distributed in all the

categories, but about 94% Builders are grouped in the last category. Thus, it was

analyzed that the turnover of different groups of organizations can not be

standardized at the same level and the test was conducted separately for each group

of sample organizations and also collectively for all the sample organizations.

In the analysis done for each group separately, it was found that for the Architectural

organizations and PMCOs, there is difference in the means of each category (Table

5.11), but the results are significant at the confidence level of 94% and not at 95%.

This limitation of statistical significance could be attributed to the small sample size,

as individually sample size of these groups is 25 and 49 respectively. For the results

of Builders, confidence level is further less. It could be attributed to the aggregation

of 94% organizations of this group in the last category leading to a skew in the data.

Results were found significant for the total sample (p<0.01) (Table 5.10).

Fig. 5.6: Distribution of Respondent Organizations as per the Turnover in Indian Rupees (INR)

0.0020.0040.0060.0080.00

100.00

upto 2crores

2-4crores

4-6crores

6-8crores

morethan 8crores

%

Architectural OrganisationsPMCOsBuilders

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Table 5.10: Oneway ANOVA Test for Testing Relation between Turnover of the Organization and Extent of Use of ICT

ANOVA ict_comp Architectural Organizations Sum of Squares df Mean Square F Sig. Between Groups 84083.63 3.00 28027.88 2.97 0.055 Within Groups 197988.93 21.00 9428.04 Total 282072.56 24.00 PMCOs Sum of Squares df Mean Square F Sig. Between Groups 79582.73 4.00 19895.68 2.54 0.053 Within Groups 344117.68 44.00 7820.86 Total 423700.41 48.00 Builders Sum of Squares df Mean Square F Sig. Between Groups 23703.95 2.00 11851.97 1.07 0.349 Within Groups 797904.72 72.00 11082.01 Total 821608.67 74.00 Total Sample Organizations Sum of Squares df Mean Square F Sig. Between Groups 205009.29 4.00 51252.32 4.39 0.002 Within Groups 1680648.99 144.00 11671.17 Total 1885658.28 148.00

Thus, it is interpreted that the hypothesis can be considered valid separately for

Architectural organizations and PMCOs and collectively these two groups constitute

about 50% of the sample size. For Builders further analysis is required by having

more categories on the higher side for recording turnover of the organizations. For

the total sample, the hypothesis is valid that organizations with higher turnover have

higher adoption of ICT.

Thus, hypothesis HR1 is accepted and the data analysis indicates that rejecting the

hypothesis may lead to Type I error.

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Table 5.11: Descriptive Statistics for Hypothesis HR1

ict_comp Architectural Organizations N Mean Std. Deviation Std. Errorupto 2 crores 12.00 496.75 106.67 30.79 2-4 crores 7.00 564.71 68.53 25.90 4-6 crores 0.00 0.00 0.00 0.00 6-8 crores 4.00 600.75 23.99 12.00 more than 8 crores 2.00 688.50 207.18 146.50 Total 25.00 547.76 108.41 21.68 PMCOs upto 2 crores 3.00 622.67 25.58 14.77 2-4 crores 12.00 665.83 45.86 13.24 4-6 crores 6.00 635.67 61.23 25.00 6-8 crores 10.00 754.90 80.22 25.37 more than 8 crores 18.00 682.22 119.56 28.18 Total 49.00 683.69 93.95 13.42 Builders upto 2 crores 2.00 591.50 53.03 37.50 2-4 crores 0.00 0.00 0.00 0.00 4-6 crores 0.00 0.00 0.00 0.00 6-8 crores 2.00 493.50 37.48 26.50 more than 8 crores 71.00 603.52 106.48 12.64 Total 75.00 600.27 105.37 12.17 Total Sample Organizations upto 2 crores 17.00 530.12 104.84 25.43 2-4 crores 19.00 628.58 73.23 16.80 4-6 crores 6.00 635.67 61.23 25.00 6-8 crores 16.00 683.69 118.77 29.69 more than 8 crores 91.00 620.96 114.40 11.99 Total 149.00 618.89 112.88 9.25

5.4.3 Supplementary Hypotheses

5.4.3.1 Hypothesis HS1

‘It is perceived that adoption of ICT leads to significant benefits with respect to

building project management.’

Data for the above hypothesis was collected through Section III of the questionnaire

as perceived benefits of ICT adoption for building project management. 31 perceived

benefits identified from the literature review and after discussion with the experts in

the industry and academics were listed (ref. Table 4.1). Respondents’ perception for

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each identified benefit was rated on a five-point Likert scale. On this scale, 1 and 5

corresponded to ‘not important’ and ‘most important’ respectively, whereas 3

corresponded to ‘moderately important’. For each organization, scores of all the 31

perceived benefits were aggregated (benefits) and significance of the variable was

tested through one-sample t-test (Table 5.13). The results were found significant

(p<0.001). Table 5.12 shows the mean and standard deviation of the test variable

‘benefits’. Descriptive statistics for each identified benefit are discussed later in the

chapter in Sec. 5.6.3.

Table 5.12: Descriptive Statistics of test variable 'benefits'

One-Sample Statistics N Mean Std. Deviation Std. Error Mean

benefits 149.00 126.40 15.15 1.24

Table 5.13: t-test Results for Perceived Importance of Benefits of use of ICT for Building Project Management

One-Sample Test Test Value = 93


Difference t df Sig. (2-tailed) Mean Difference Lower Upper benefits 26.91 148.00 0.00 33.40 30.94 35.85

The above analysis proves hypothesis HS1 that it is perceived that adoption of ICT

leads to significant benefits with respect to building project management.


‘It is perceived that increase in ICT adoption by SMEs for managing building

projects is driven by industry requirements.’

Data for the above hypothesis was collected through Section III of the questionnaire

as perceived industry drivers for increased ICT adoption for building project

management. 9 perceived industry drivers identified after discussion with the experts

in the industry were listed. Respondents’ perception for each identified industry

driver was rated on a five-point Likert scale. On this scale, 1 and 5 corresponded to

‘not important’ and ‘most important’ respectively, whereas 3 corresponded to

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‘moderately important’. Table 5.14 shows the mean score, standard deviation and the

ranking of perceived industry drivers.

Table 5.14: Mean and Std. Deviation of the Perceived Industry Drivers Rank Industry Drivers Mean Std. Deviation

1 Increased requirement of clients for more project information resulting in increased use of ICT 4.25 0.77

2 Increased requirement of adoption of ICT by larger organizations when SMEs execute projects as subcontracting agencies of larger organizations 4.18 0.87

3 Increased involvement of geographically separated agencies and information centers in a Project 4.13 0.77

4 Increased construction activity in the country 4.11 0.95 5 Education of upcoming construction students towards ICT 4.10 0.98 6 Widespread availability of IT tools and technologies in the

country 4.08 0.81 7 Increased involvement of multiple agencies in construction

projects 4.01 0.80 8 Dynamic changes in information requirement during project

execution 3.97 0.93 9 Increased competition with overseas construction organizations

executing projects in the Indian construction industry 3.69 0.64

All the identified industry drivers have mean rank greater than 3 and have been

considered important.

The most important perceived drivers are ‘increased requirement of clients for more

project information resulting in increased use of ICT’ and ‘increased requirement of

adoption of ICT by larger organizations when SMEs execute projects as

subcontracting agencies of larger organizations’. In the second case also ICT

adoption is driven by clients’ requirements since in this situation larger organizations

act as clients for SMEs. This analysis validates Hypothesis HD5 that in majority of

the surveyed organizations, variable use of ICT in the projects is due to the ‘variable

requirement of clients’.

‘Increased involvement of multiple agencies’ is also an important driver with the

mean score of 4.01, but ‘increased geographical separation of these multiple

agencies’ is perceived as a more important driver. The middle level ranked drivers;

‘increased construction activity in the country’, ‘education of upcoming construction

students towards ICT’ and ‘widespread availability of IT tools and technologies in

the country’, show that the industry is getting prepared for the increased use of ICT.

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‘Dynamic changes in information requirement during project execution’ is also an

important driver but is ranked low in comparison to the other drivers. The three

drivers have std. deviation greater than 0.9. It shows that for some respondents

‘increased construction activity in the country’, ‘education of upcoming students for

use of ICT’ and ‘dynamic changes in information requirement during project

execution’ are not important drivers, but for some respondents these are highly

important. After studying the responses it was found that the organizations having

higher use of ICT have communication management strategies drafted for their

organizations and do not consider these as important drivers, but these requirements

drive higher use of ICT in other organizations.

‘Increased competition with overseas construction organizations executing projects

in the Indian construction industry’ is also ranked low and has least std. deviation,

since primarily large size overseas organizations are entering the Indian construction

industry and majority of the SMEs are not directly in competition with these

organizations.

The overall impact of the industry drivers has been perceived as significantly

important. t-test was conducted to test the significance. For each organization, scores

of all the 9 perceived industry drivers were aggregated (drivers) and significance of

the variable ‘drivers’ was tested through one-sample t test (Table 5.16). The results

were found significant (p<0.001). Table 5.15 shows the mean and standard deviation

of the test variable ‘drivers’.

Table 5.15: Descriptive Statistics of Test Variable 'drivers'

One-Sample Statistics N Mean Std. Deviation Std. Error Mean

drivers 149.00 36.74 4.23 0.35

The above analysis proves hypothesis HS2 that increase in use of ICT by SMEs for

managing building projects is driven by the industry requirements.

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Table 5.16: t-test Results for Perceived Industry Drivers for Increased Use of ICT for Building

Project Management One-Sample Test

Test Value = 27 95%

Confidence Interval of the

Difference t df

Sig. (2-tailed)

Mean Difference Lower Upper

drivers 28.09 148.00 0.00 9.74 9.06 10.43


‘Extent of use of ICT for building project management differs for three groups of

sample organizations i.e Project management consultancy organizations, Builders

and Architectural organizations.’

Data for the above hypothesis was collected through Section II of the questionnaire

as communication methods utilized for each identified project management process.

Project management processes were categorized as Time management, Cost

management and Project administration and resource management processes. The

format for data collection was same as explained for Hypothesis HD1. For each

organization, scores for all the processes were aggregated under the variable ‘pmict’.

Mean of the variable for each group was compared (Table 5.17). Results show that

the average use of ICT for building management processes is least in Architectural

Organizations and maximum in PMCOs.

Table 5.17: Descriptive Statistics for Hypothesis HS3 pmict N Mean Std. Deviation Std. ErrorArchitectural Organizations 25.00 470.28 99.99 20.00 Builders 75.00 519.25 97.03 11.20 PMCOs 49.00 592.18 91.95 13.14 Total 149.00 535.02 104.82 8.59

Difference of the mean value between the groups was also found significant

(p<0.001) through Oneway ANOVA test (Table 5.18).

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Table 5.18: Oneway ANOVA Test for Difference in Use of ICT for Different Groups of Sample Organizations

ANOVA pmict Sum of Squares df Mean Square F Sig. Between Groups 283542.37 2.00 141771.18 15.42 0.00 Within Groups 1342460.57 146.00 9194.94 Total 1626002.94 148.00

The above analysis proves Hypothesis HS3 that the extent of use of ICT for building

project management differs for the three groups of respondent organizations.


‘All the four groups of benefits are interrelated and cannot be achieved in isolation.’

This hypothesis was formulated in Chapter 4 after ISM analysis. Data for the above

hypothesis was collected through Section III of the questionnaire as described for

hypotheses HS1. Perceived benefits were categorized under four groups: benefits

related to effective use of Technology, effective Team Management, measures of

Project Success, and increased Organizational Efficiency. The scores for each group

of benefits were aggregated and Pearson correlation was calculated between the four

groups of benefits (Table 5.19). Data analysis shows that there is significant

correlation between the four groups of benefits.

Table 5.19: Correlation between Four Groups of Benefits

Project Success

Team Management Technology Organization

Project Success 1.000 Team Management 0.540** 1.000 Technology 0.503** 0.707** 1.000 Organization 0.452** 0.637** 0.653** 1.000 ** Correlation is significant at p<0.01level (2-tailed).

This validates the result obtained from ISM analysis and proves Hypothesis HS4 that

all the four groups of benefits are interrelated and cannot be achieved in isolation.

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5.5 Status of ICT Adoption in the Indian Construction Industry

The above analysis and further study of the data helped in summarizing the status of

ICT adoption in the Indian construction industry. IT infrastructure at site has been

perceived as an important enabler for effective ICT adoption for project

management. But, data analysis showed (Fig. 5.7) that even though in majority of the

surveyed organizations, more than 80% of the office staff have access to computers,

in only about 20% organizations more than 80% site staff have access to computers.

Fig. 5.7: Percentage of office and site staff with access to computers

0.0020.0040.0060.0080.00

100.00

0-20% 20%-40% 40%-60% 60%-80% more than80%

% o

rgan

isat

ions

% office staff% site staff

Study of above data distribution led to the study of relation between ‘percentage of

site staff with access to computers’ and ‘extent of use of ICT’. One-way ANOVA

test was conducted to assess the significance of ‘Change in level of use of ICT’ with

‘Change in percentage of site staff with access to computers’. The results were found

significant (p<0.001) as shown in Table 5.20. Table 5.21 shows descriptive statistics

for the test. This analysis further supports the perception that adequate IT

infrastructure at sites is an important enabler for effective ICT adoption for project

management.

Table 5.20: Oneway ANOVA Test for Testing Relation

Between 'Percentage of Site Staff with Access to Computers' and 'Extent of ICT Adoption'

ANOVA ict_comp Sum of Squares df Mean Square F Sig.Between Groups 471133.73 4.00 117783.43 11.99 0.00Within Groups 1414524.55 144.00 9823.09 Total 1885658.28 148.00

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Table 5.21: Descriptive Statistics of 'Extent of ICT Adoption' for Distribution of 'Percentage

of Site Staff with Access to Computers' ict_comp N Mean Std. Deviation Std. Error0-20% 15.00 519.40 89.33 23.06 20%-40% 21.00 526.90 105.69 23.06 40%-60% 33.00 627.27 88.96 15.49 60%-80% 45.00 671.76 87.54 13.05 more than 80% 35.00 640.86 119.92 20.27 Total 149.00 618.89 112.88 9.25

IT based communication has increased considerably in the last 5 years (Fig. 5.8). But

still the majority of the SMEs do not have a communication management strategy

(Hypothesis HD4) and their ICT adoption for building project management has not

reached a high maturity level, since it is primarily project specific and not

organization specific (Hypothesis HD5). Data analysis also highlights that extent of

ICT adoption for a project is primarily defined by the clients’ requirements

(Hypothesis HD5 and HS2) and is also affected by the variable ICT capability of the

project team organizations (Hypothesis HD5). Thus increase in ICT adoption in the

construction industry is driven by the industry requirements (Hypothesis HS2).

Fig. 5.8: Distribution of Respondent Organizations for Rate of Increase of IT based Communication in last 5

years1%

6%

14%

36%

43%

0-20%20%-40%40%-60%60%-80%more than 80%

Effective ICT adoption for building project management requires collaborative use

of ICT between different organizations. But, it was found that collaborative use of

ICT is less as compared to the internal use of ICT within the organizations and varies

between different groups of project team organizations (Hypothesis HD1).

__________________________________________________________________________________ Page 147


E-tendering is not a norm in the industry. Data for assessing this feature was

collected through Section II of the questionnaire as ‘method of receiving bids’ and

‘method of conducting tender meetings and negotiations’. For each process, the

respondents could give multiple responses in five categories as shown in Fig. 5.9.

Data analysis showed that 49 (33%) organizations receive bids only as hard copies

(in 80%-100% projects), 12 (8%) as hard copies as well as e-mails and 4 (3%) only

as e-mails. Multiple responses were received from the remaining 84 organizations,

out of which, 41 (28%) organizations primarily (in 60%-80% projects) receive bids

as hard copies, 4 (3%) as hard copies and e-mails and 39 (26%) as e-mails. Thus it

can be summarized that about 61% (33% + 28%) organizations are primarily

receiving bids as hard copies only and only 29% (3% + 26%) organizations are

primarily receiving bids as e-mails only.

All the organizations conduct tender meetings and negotiations through personal

meetings.

Fig. 5.9: Distribution of Organizations for theMethod of Receiving Bids

0 5 10 15 20 25 30 35 40 45 50 55

(0-20%)

(20%-40%)

(40%-60%)

(60%-80%)

(80%-100%)

No. of orgs.

e-mailHard copy and e-mailHard copy

It is perceived that ICT adoption for building project management leads to significant

benefits (Hypothesis HS1), but extent of ICT adoption for building project

management differs for the three groups of sample organizations i.e. PMCOs,

Builders and Architectural organizations (HS3). One of the reasons identified after

data analysis is the difference in the extent of formal project management processes

adopted by these groups of organizations.

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Data for studying this feature was collected through Section II of the questionnaire,

where it was identified whether organizations execute the identified time and cost

management processes. Data was collected in (Yes/No) format. As shown in Fig.

5.10, all the surveyed PMCOs execute all the identified time and cost processes.

With respect to time management processes, all the organizations prepare ‘detailed

time schedule at construction stage’, but not all the builders and architectural

organizations prepare ‘master time schedule at design stage’ and ‘performance

reports and variance analysis reports’. With respect to the cost management

processes, cost estimates are prepared by all the organizations, detailed cash flow is

prepared by almost all and the cost variance reports are prepared by lesser number of

organizations.

It can be summarized that time and cost management processes are executed in

decreasing order by PMCOs, builders and architectural organizations.

Fig. 5.10: Distribution of Organizations for formal Time and Cost Management Processes Adoption

0 20 40 60 80 100 120

Cost variance reports

Detailed cash flow req for the project

cost estimates for the project

Variance analysis reports for time schedules

Project performance reports for time schedules

Updated construction stage time schedule

Detailed time schedule at construction stage

Master time schedule prepared at design stage

% of orgs.

PMCOsBuildersArchitectural Organisations

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Fig. 5.11: Mean and Std. Deviation Values of Respondent Organizations for Scores for Formal Time and Cost

Management Processes Adoption

0 10 20 30 40

PMCOs

MeanBuilders

Std. Deviation Architectural Organisations

For further analysis, Fig. 5.11 shows overall mean and std. deviation of scores for the

three groups of organizations. For overall mean value also, pattern remains the same.

But, std. deviation is least for PMCOs and maximum for the builders showing more

variability in responses of this group.

Thus it can be summarized that maximum formal project management processes are

adopted by PMCOs and least by the Architectural organizations for building project

management and it is one of the reasons that ‘Extent of use of ICT for building

project management differs for the three groups of sample organizations i.e PMCOs,

Builders and Architectural organizations’. Also, there is more variability among

Builders for adoption of formal project management processes.

Factors affecting differential use of ICT by the three groups of respondent organizations require further study.

In 93% of the surveyed organizations, all the computers within the office were

connected through LAN. But, only 37% of the organizations had established Intranet

facility for connecting all the office and site staff and for providing them access to

the centralized information and databases.

Use of the mobile phones is a norm for communication in the country and in the

construction industry. But mobile Internet has been used only by 15% of the the

surveyed organizations for project management. Radio frequency identification

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devices (RFIDs) and bar coding have not been used by any of the surveyed

organizations for materials management. Also, no evidence of use of these

technologies was found through Literature Review and discussions with experts in

the industry. Internet enabled communication technology is in use in the industry, but

comprehensive web based project management solutions have not been adopted in

the industry. About 1% of the surveyed organizations have partially adopted web

based project management for one or two projects. After discussion with these

organizations it was found that this was primarily due to the clients’ requirements.

The method of communicating electronic information was assessed. Fig. 5.12 shows

results for the method of communicating electronic information within office and

with project sites. It was found that in 13% organizations, it is primarily through data

storage media like floppies/CDs etc., in 46% it is primarily through e-mails and in

41% both the methods are used. But, for communicating electronic information

between office and other project agencies (Fig. 5.13), only 4% organizations

primarily communicate through data storage media, 38% through internet/extranet

and 58% utilize both the methods. Thus, it cane be summarized that electronic

information is communicated not only through internet, but also through the data

storage media.

Fig. 5.12: Method of Communicating Electronic Information within Office and with Project Sites

13

4146

0

10

20

30

40

50

physical transfer offloppies/CDs ets.

via floppies/CDs andinternet/intranet

via internet/intranet

% O

rgan

isat

ions

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Fig. 5.13: Method of Communicating Electronic Information between Office and other Project Agencies

4

58

38

010203040506070

physical transfer offloppies/CDs etc.

via floppies/CDs andinternet/extranet

via extranet/internet

% O

rgan

isat

ions

Majority of the respondent organizations utilize the standard software available.

Table 5.22 shows that primarily the international standard software are used in the

industry for general administration and project management processes. Only 19

organizations (about 13%) use customized software for ‘Bill of quantities

preparation, Comparative analysis of bids received, Tender preparation and Contract

management’.

Questions were included in the questionnaire to assess the perceptions of respondents

regarding importance of ‘availability of indigenously developed software

incorporating the specific construction industry requirements of the country’ and

‘availability of multilingual software and web portals’ as enablers for the increased

use of ICT for Project Management. Data analysis shows that respondents do not

consider these as important enablers (Sec. 5.6.2). Generalization of the above results

for the entire industry indicates that there is standardization in use of software within

industry and since primarily international software are used for the different

processes, technically work interface with national and international organizations

with respect to the use of software is not difficult.

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Table 5.22: Software used for Building Project Management Processes Software General administration works MS Office Time, Resource and Cost scheduling MS Excel, MS Project and Primavera Project

Planner Project Administration Works like Purchase orders preparation and management, Materials management and Manpower resource management records maintained at site

MS Word and MS Excel

Project Administration Works like Bill of quantities preparation, Comparative analysis of bids received, Tender preparation and Contract management

MS Excel and Customized software (19 organizations)

5.6 Perception Based Data Analysis

Perceived barriers for effective adoption of ICT were studied at the four levels (ref.

Appendix A), i.e. industry, organization, projects, and technology levels.

Identification of the perceived barriers at each level led to the identification of

perceived enablers of that level, since enablers are required to mitigate barriers and

assist in enhancing ICT adoption in the industry (ref. Appendix A). But, some of the

industry related barriers could also be addressed through strategic decisions taken at

the project level for administration and increasing team collaboration. Perceived

benefits were grouped under measures of project success, effective team

management, effective use of technology and increased efficiency of the organization

(Table 4.1). Fig. 5.14 shows the groups in which perceived barriers, enablers and

benefits were studied and their inter-relation.

Respondents’ perception for each identified barrier, enabler and benefit was rated on

a five-point Likert scale. On this scale, 1 and 5 corresponded to ‘not important’ and

‘most important’ respectively, whereas 3 corresponded to ‘moderately important’.

Descriptive analysis was conducted for the data collected for each group of the

perceptions and the perceptions were ranked based on the mean responses. Some of

the perceptions had high standard deviation and responses for these perceptions were

studied individually. It was found that there is a relation between the perceptions and

the size of organization as well as the extent of ICT adoption by the organization.

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5.6.1 Perceived Barriers

Table 5.23 shows the mean and standard deviation for perceived barriers. Study of

the ranking of the perceived barriers and enablers shows that Industry related barriers

are among the top 50% barriers. Organization related barriers are in the middle and

in lower levels. Technology related barriers are among the last 40% barriers. There is

only one project related barrier and it is in the middle.

Highest ranked barrier is ‘Poor supply-chain management of contractors, sub-

contractors, specialists and suppliers in the construction projects’. This barrier has

been considered as an Industry related barrier instead of Project related barrier,

because this issue needs to be strategically addressed at the industry level and would

provide benefits in the projects. Barriers related to basic structure of the construction

industry in terms of ‘fragmentation’, ‘lack of strategic direction’ and ‘separation of

the process of design, construction and operation and maintenance of buildings

works’ are also ranked high. ‘Initial cost’ and ‘cost of upgrading ICT infrastructure’

related barriers are the next. But, barriers related to ‘cost of training the staff or

hiring staff for new technology’ are below.

Fig. 5.14: Relation between the Groups in which the Perceptions are studied

Barriers

Industry

Projects

Technology

Organization

Enablers

Industry

Projects Administrative project issues

Team management

Technology

Organization

Construction Industry Study Levels

Benefits

Technology Industry

Organization Organization

Project Success People

Team management

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Table 5.23: Descriptive Statistics – Perceived Barriers Rank Barriers Group Mean Std. Deviation

1 Poor supply-chain management of contractors, sub-contractors, specialists and suppliers in the construction projects

Industry

3.72 1.23 2 The separation of the process of design, construction and

operation and maintenance of buildings

Industry 3.70 1.23 3 Lack of strategic direction within the industry in terms of

standards and protocols that would inform any ICT investment decision

Industry

3.62 1.01 4 Fragmented construction industry having several different

organizations big and small, having different set of requirements and different level of ICT knowledge

Industry

3.59 1.14 5 Cost of keeping up to date with the technological

developments in hardware/software Organization

3.58 1.11 6 Initial cost of ICT infrastructure installation Organization 3.54 1.33 7 Non-availability of critical mass of organizations/projects

in the industry that adopt ICT Industry

3.47 1.10 8 The construction industry does not work on absolute

standards or is not dominated by one strong leader, as is the case like IBM in computers or Ford in automobiles.

Industry

3.46 1.07 9 Cost of training the staff for technological developments in

hardware/software or hiring new staff for the updated technology

Organization

3.44 1.19 10 Lack of technical standards for communication interface

between different software Technology

3.42 1.12 11 Security of data Technology 3.41 1.19 12 Senior construction professionals unwilling to adopt ICT Organization 3.19 1.51 13 Uniqueness of each construction project Projects 3.15 0.87 14 High staff turnover in construction organizations Organization 3.03 1.35 15 Non-dependability of IT Infrastructure Technology 2.87 1.18 16 Information overflow because of use of Internet as a

communication tool Technology

2.74 1.13 17 Uncertainty of benefit from use of IT based

communication Organization

2.52 1.36 This is so because, training of the staff is not prevalent in most of the construction

organizations and staff salaries in the construction industry are defined primarily by

the technical expertise of the staff and not by their ICT capability. Barrier related to

‘initial cost of ICT infrastructure’ has high standard deviation of 1.33, which

indicates that varied responses have been given by the organizations for this barrier.

After studying the responses it was found that for organizations with higher turnover

it is not an important barrier.

Barriers related to ‘non-availability of critical mass of organizations/projects in the

industry that adopt ICT’ and ‘not having an industry leader or defined industry

standards’ have middle level ranking. These barriers affect setting up or defining the

benchmark practices for ICT adoption in the industry. Technology related barriers,

__________________________________________________________________________________ Page 155


such as: ‘lack of technical standards for communication interface between different

software’, ‘security of data’, ‘non dependability of ICT infrastructure’ and

‘Information overflow due to use of Internet’ are not perceived as very important

barriers, even though primarily standalone software are used for discrete

applications. The barrier related to ‘senior construction professionals unwilling to

adopt ICT’ is also low in ranking, and this fact in itself is an enabler. Mean ranks of

the barriers ‘high staff turnover in construction organizations’ and ‘uncertainty of

benefit from use of IT based communication’ are low. But, their standard deviation is

highest at 1.35 and 1.36 respectively, indicating varied perceptions for these barriers.

After studying the responses individually, it was found that the perception of these

barriers is influenced by the size of the organization. These barriers are not very

important for organizations with high turnover.

Analysis shows that available Technology in terms of ICT infrastructure is found

primarily adequate by the organizations, and high ranked barriers are Industry related

barriers or Organization related barriers. These require strategic initiatives at the

industry and organization levels.

5.6.2 Perceived Enablers

Table 5.24 shows the mean and standard deviation for the perceived enablers. Study

of the ranking of perceived enablers shows that Industry and Organization related

enablers are primarily in the top and middle levels. Technology related enablers are

in the middle and bottom ranks. Projects related enablers are distributed at all the

levels.

The project related administrative enabler of ‘planning information flow in

standardized formats’ is at the highest rank, but it has a high standard deviation of

3.43, which indicates varied perceptions. Very low importance has been given to this

enabler by the organizations that have low ICT adoption. Other project related

administrative enablers like ‘Improved IT support to construction sites’, ‘project

team members using same IT systems’, ‘each project to have a champion for

adoption of ICT and acting as the team leader’ etc. are ranked high.

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Table 5.24: Descriptive Statistics – Perceived Enablers Rank Enablers Group Mean Std. Deviation

1 Information flow planned in standardized formats Projects 4.44 3.43 2 Improved IT support to construction site processes Projects 4.30 0.78 3 Development of a realistic and reliable electronic database

in the organization Organization

4.26 0.83 4 All project team members use the same IT systems for the

project Projects

4.25 0.87 5 Education of the users for effective use of ICT and its

Benefits Industry

4.23 0.89 6 Systems for better communication between office and

project sites Projects

4.23 0.87 7 Each project to have a champion for adoption of ICT and

acting as the team leader. It could be the Project Manager/owner’s project representative

Projects

4.19 0.90 8 Senior management should create an environment for

adoption of ICT within the organization Organization

4.17 0.90 9 Project scope requiring use of ICT Projects 4.16 0.94

10 Adequate and dependable conditional access systems to be provided for the automated system

Technology 4.14 0.81

11 Shared use of common databases by project team members Projects 4.13 0.88 12 Project information seamlessly transferred between all the

phases of a building project. Projects

4.13 0.84 13 Standardized drawing formats for presentation and content. Technology 4.12 0.93 14 Equal attention to be given to associated managerial issues

while conducting technical implementation Organization

4.11 0.81 15 ICT Training to be more accessible and less costly Industry 4.09 1.04 16 Increased use of 3D visualization techniques as a

communication tool Technology

4.08 1.12 17 Education of the users that ICT does not increase isolation

but enhances team working Industry

4.08 0.91 18 Widespread adoption of ICT in the construction industry Industry 4.08 0.93 19 Measuring benefits accrued by utilization of IT based

communication Organization

4.05 0.96 20 Collaboration between research and practice Industry 4.03 1.00 21 Better collaborative maturity or trust between team

members for sharing information Projects

3.97 0.88 22 Use of standardized information classification systems Technology 3.95 0.98 23 Periodicity and alternative methods of communication for

each process finalized at the start of the project Projects

3.95 0.80 24 Industry data and information bases maintained by

professional bodies and government agencies Industry

3.93 1.15 25 Software to be more user friendly and flexible Technology 3.93 0.95 26 IT communication systems developed within organizations

to be business driven Organization

3.90 1.00 27 Organization structures to be reengineered for use of ICT Organization 3.89 1.01 28 Use of common internet services by project team members Projects 3.88 1.08 29 Using web based systems also as a workspace Projects 3.84 4.22 30 Subcontractors and suppliers to be integrated formally into

communication and reporting structures Projects

3.83 1.02 31 Development of data communication and exchange

standards Technology

3.81 0.87 32 Time and cost scheduling software with increased Technology 3.74 1.07

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Table 5.24 Continued capability for risk management

33 Development of interaction communication protocols, information policies, and meeting structures for online meetings.

Projects

3.65 1.13 34 Flexible/scalable systems that would help in meeting

changing demands Technology

3.64 0.99 35 Better interface between PM/scheduling software and

software utilized for other processes Technology

3.63 0.65 36 Availability of indigenously developed software

incorporating the specific construction industry requirements of the country

Technology

3.60 1.26 37 Availability of more multilingual software and web portals Technology 2.74 1.27

‘Project scope requiring use of ICT’ is at the middle level and team management

related enablers like ‘Better collaborative maturity or trust between team members

for sharing information’, ‘Shared use of common databases by project team

members’ etc. are at the middle and bottom levels. ‘Using web based systems also as

a workspace’ is a low ranked enabler but has a high standard deviation of 4.22 as

most of the respondents are not aware of the web based systems and hence do not

consider it important, but organizations with higher use of ICT consider it important.

Organization related enabler ‘Development of a realistic and reliable electronic

database in the organization’ is ranked high. Other organization related enablers are

related to strategic planning at the organization level by the senior management and

are ranked at the top and middle level. The organizations look at the professional

bodies, academicians and large organizations to take the initiatives and to educate the

users for effective use of ICT and its benefits. Other industry related enablers are

ranked at the middle level.

‘Security of data’ has been rated as a middle ranked barrier and ‘adequate and

dependable conditional access systems to be provided for the automated system’ has

been rated as a middle ranked technology related enabler. It indicates that data

security is an issue that needs consideration. Enablers related with ‘standardized

information systems’ and ‘increased use of 3D visualisation techniques’ are at the

middle level. Technology related enablers addressing requirement of ‘better interface

of different software’ and ‘indigenously developed software’ are at the bottom. This

is also assessed in the earlier sections as primarily international level standard

software are being utilized in the industry.

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Analysis shows that it is important for the clients to include use of ICT in the project

scope. Some of the industry related barriers can be addressed while planning and

setting up systems at the project level. But, these systems need to be set up by a team

member who takes the lead in defining the adoption of ICT in a project. Such a

champion of adoption of ICT should also address the issues that improve team

management collaboration. All the project team organizations should develop

strategic plans aligning the adoption of ICT with their business plans and

maintaining a reliable electronic database in the organization. It is also important that

at the industry level, education and training are provided to the construction

professionals for adopting ICT.

5.6.3 Perceived Benefits

Table 5.25 shows the mean and standard deviation for the perceived benefits.

Descriptive statistics showed that all the groups of benefits have been considered

equally important and overall it is perceived that the adoption of ICT leads to

significant benefits. t-test of significance was conducted and the results were found

significant (Hypothesis HS1).

‘Effective communication management’ is considered as the most important benefit.

‘Project completion on time and as per the estimated budget’ are also high ranked

benefits, ‘project completion as per the specifications’ is ranked low, because it is

perceived that there are other factors also that drive this benefit. Benefits of adoption

of ICT also lead to ‘client satisfaction’. Benefits related to ‘greater management

control’, ‘effective joint decision-making’ and ‘change management’ are also

important. ‘Effective contract management’ benefit is medium ranked since adoption

of ICT partially drives this benefit. ‘Flow of accurate information’ is ranked in the

middle, but it has high standard deviation since some respondents were of the view,

that, even if ICT is adopted, accuracy of information cannot be achieved unless input

data is accurate, which further stresses the requirement of training and education.

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Table 5.25: Descriptive Statistics – Perceived Benefits Rank Benefits Group Mean Std. Deviation

1 Effective communication management between project team members

Team management 4.54 0.61

2 Project completion as per the estimated time Projects 4.50 0.82 3 Project information obtained in real time Projects 4.45 0.83 4 Project completion as per the estimated budget Projects 4.35 0.82 5

Greater management control Team

management 4.29 0.78 6 Client satisfaction Projects 4.28 0.78 7 Improved capability of the system to cross reference to

other correspondence Technology

4.27 0.73 8 Effective collaboration and coordination between project

team members Team

management 4.26 0.70 9 Reduced risk of errors and rework on projects Projects 4.25 0.88

10 Multilocational availability of information Technology 4.23 0.91 11 “One-source” documentation archive maintained for

clients Projects

4.19 0.93 12 Useful information compiled and disseminated to other

projects Organization

4.17 0.75 13 Better information assessment and management within the

organization Organization

4.15 0.98 14 Richer information is made available to managers Projects 4.15 0.84 15 Effective concurrent construction management Projects 4.13 0.93 16 Increase in overall organizational efficiency Organization 4.05 0.96 17 Effective contract management Projects 4.01 1.00 18

Effective joint decision making Team

management 4.00 0.87 19 Effective change management Projects 3.99 0.97 20 A complete log of all communications maintained for

tracking purposes Projects

3.99 0.85 21 Ease of retrieval of information Technology 3.99 0.99 22 Project managers can spend more time on managerial work Projects 3.99 0.99 23 Flow of accurate information Technology 3.98 1.11 24 Less time spent in query and approval process Projects 3.91 0.95 25 Increased information portability in the ICT environment Technology 3.86 0.94 26 Effective material procurement and management Projects 3.85 0.94 27 Life cycle concept becomes a competitive factor Projects 3.83 0.89 28 Reduced hard copy filing/storage of documents/drawings Technology 3.81 1.21 29 Project completion as per the specifications Projects 3.70 1.08 30

Motivation of the workforce Team

management 3.66 1.25 31 Reduced administrative costs of document handling and

distribution to multiple parties Projects

3.56 1.33

The majority of the respondents perceive that adoption of ICT does not lead to

substantially ‘reduced hard copy filing/storage of documents/drawings for the

projects’ and ‘reduced administrative costs of document handling and distribution to

multiple parties’. This perception has also been validated by the data analysis shown

in Sec. 5.7. Almost all the surveyed organizations keep hard copy backup of

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documents along with the electronic copy, and all good for construction documents

and drawings have to be sent as signed hard copies. But high standard deviations of

these benefits show that some organizations do perceive these benefits as important.

As discussed in the introduction to the research area, in the context of this research,

effective adoption of ICT can be defined by the extent to which ICT adoption

reduces human resources, time and cost for managing information for building

project management processes. As per the results discussed above, time of

communicating information is perceived to have reduced. But, since hard copy

storage of data has not reduced, human resources, cost and time related with

managing information have not reduced.

5.6.4 Scenario Building for the Industry

Each organization’s data was studied for the cumulative responses of perceived

barriers and benefits. Based on these cumulative responses, scenario building has

been done for the level of ICT adoption for building project management in the

industry with respect to the perceptions.

The study included 17 identified barriers and importance of each barrier is rated on a

5 point Likert scale with scores 1-5 (Sec. 5.6.1). Thus, cumulative score of the

barriers for any organization could range from 17-85. Considering equal range

grouping, cumulative scores of 17-39 are considered as low, 40-62 as medium and

63-85 as high. The study included 31 identified benefits (Sec. 5.6.3) and cumulative

scores of benefits for any organization could range from 31-155. Considering equal

range grouping, cumulative scores of 31-72 are considered as low, 73-113 as

medium and 114-155 as high. The matrix in Fig. 5.15 shows the distribution of the

surveyed organizations for low, medium and high perceptions of the barriers and the

benefits and results of the scenario building. The definition of high and low ICT

adoption is in reference to ICT adoption by SMEs in the Indian construction industry

where the questionnaire survey was conducted.

__________________________________________________________________________________ Page 161


Hig

h ICT adoption – High level Future planning – Planning for higher adoption of ICT

(71) 47.65% ICT adoption – Medium level Future planning – Planning for higher adoption of ICT

(22) 14.76% ICT adoption – Medium level Future planning – Planning for higher adoption of ICT

Med

ium

(53) 35.57% ICT adoption – Medium level Future planning – Not planning for higher adoption of ICT

(3) 2.01% ICT adoption – Low level Future planning – Not planning for higher adoption of ICT

Ben

efits

Low

Low Medium High Barriers

Fig. 5.15: Matrix with the Distribution of Organizations for Different Levels of Perceptions of Barriers and Benefits and Results of Scenario Building

53 (35.57%) organizations perceive medium level barriers and benefits. Thus, if not

driven by the industry requirements, these organizations would be medium level

adopters of ICT. They would also not be planning for high level adoption of ICT, as

they perceive only medium level benefits. 3 (2.01%) organizations perceive high

barriers and medium benefits. By default, ICT adoption in these organizations would

be low. 71 (47.65%) organizations perceive high benefits and medium level barriers.

ICT adoption in these organizations would be in the middle level, but these

organizations would be planning for the further increased use as they perceive high

benefits. 22 (14.76%) organizations would like to increase the ICT adoption in their

organizations because they perceive high benefits, but perception of high barriers

would define their present use and future planning for ICT adoption.

There are no organizations in the survey that perceive low barriers or low benefits of

effective adoption of ICT for building project management. The scenario building

results can be summarized as given below.

An organization’s ICT adoption would be of high level, only if the senior

management perceives low barriers and high benefits.

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5.7 Cultural Factors

Four cultural factors were identified after data analysis.

‘Non-dependability of IT infrastructure’ is not considered as an important barrier for

effective adoption of ICT. But:

Cultural Factor 1: Communication in which e-mail is followed by phone calls is

significant.

Cultural Factor 2: Hard copy storage of data and documents is substantial even if

electronic copies are also kept as a backup.

Cultural Factor 3: Most of the e-mails are followed by hard copies.

Data analysis for above identified factors was conducted in following four stages:

Stage 1

Section I of the questionnaire collected data for the percentage of e-mail

communication followed by phone calls for the identified general administration

processes. Information was collected at a five-point interval scale, with scores 1-5.

the aggregate score for each organization was calculated by the summation of scores

for all the processes and represented by the variable ‘emailpho’. t-test was conducted

and the variable was found significant (p<0.001) (Table 5.27).

Table 5.26: Mean and Std. Deviation for Test Variable ‘emailpho’

One-Sample Statistics N Mean Std. Deviation Std. Error Mean emailpho 149.000 14.886 4.890 0.401

Table 5.27: t-test Results for Communication in which e-mail is followed by Phone Call

One-Sample Test Test Value = 12


Difference t df Sig. (2-tailed) Mean Difference Lower Upper emailpho 7.204 148.000 0.000 2.886 2.094 3.678 The mean and standard deviation of the test variable are also shown in Table 5.26.

__________________________________________________________________________________ Page 163


Stage II

Section II of the questionnaire assessed the mode of information storage separately

for the head office and the site offices. The methods of storing documents,

drawings/design details, time schedules and cost schedules at the head office and site

offices were assessed separately (ref. Appendix A). It was assessed at a three-point

scale of hard copy, hard copy and electronic copy, and electronic copy, scaled at 1, 2

and 4 scores respectively. Thus aggregate scores for each organization could range

from 4-16 for the head office as well as for the site offices. Table 5.28 shows the

descriptive statistics of aggregate scores for head offices and site offices.

Table 5.28: Mode of Information Storage

Min. Max. MeanStd.

Deviation Site offices 4 14 6.81 1.99 Head Offices 4 16 8.09 1.49 Total 8 30 14.90 2.90

The data analysis showed that at the head offices as well as at the sites, information

is primarily stored as hard copies as well as electronic copies. But, there are some

organizations, which keep only hard copy backups at head offices and at sites,

though more organizations keep only hard copy backups at sites. It is also indicated

by the difference in the mean values. Some organizations store information only as

electronic copies also at the head office.

Stage III

Section I of the questionnaire assessed the mode of communication for general

administration works and Section II assessed the mode of communication for the

building project management processes. During the pilot survey it was analyzed that

construction organizations use multiple IT tools for data analysis and multiple data

communication methodologies. Thus, questionnaire was designed for multiple data

collection.

Section I assessed communication methodology for 6 categories of general

administration information and for each category it was assessed how much

percentage of information was communicated through hard copies and e-mails. Data

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was collected at a five point interval scale in the five categories of (0-20%), (20%-

40%), (40%-60%), (60%-80%) and (80%-100%). To assess the data communication

most often used, responses for the (80%-100%) category were assessed. Table 5.29

presents this data.

Similarly data was summarized for the building project management processes

(Table 5.30).

Table 5.29: Response of Organizations for Methodology Most Often Used for Communicating Information for General Administration Processes

(80%-100% times) No. of Orgs. Using the Communication

Methodology Hard Copy and E-mail

General Administration Information Flow

Hard Copy

E-mail No. of Orgs. % Orgs.

within the organization 20 36 93 62.41% between office and project sites 38 19 92 61.74% between project site office and other agencies

60 6 83 55.70%

between office and contractors/material suppliers and other external agencies

53 8 88 59.06%

between office and clients 22 31 96 64.42% between office and consultants 12 34 103 69.12%

The data analysis shows that for all the processes, mixed communication

methodology is adopted by organizations. It is observed that for each PM process,

number of organizations using mixed communication methodology for

communication increases in the following sequence of categories of information:

within office, between office and site staff, between office and contractors/material

suppliers and other external agencies, between office and clients/consultants. The

number of organizations primarily communicating information through e-mail are in

the reverse order.

Same pattern is observed for communication for general administration processes,

but with an exception. The number of organizations using mixed communication

methodology is less ‘between office and contractors/material suppliers and other

external agencies’ as compared to communication ‘within office or between office

and site staff’ as only hard copy communication increases.

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Table 5.30: Response of Organizations for Methodology Most Often Used for Communicating Information for Building Project Management Processes

(80%-100% times) No. of Orgs. Using the Communication

Methodology Hard Copy and E-mail

Project Management Processes No. of Orgs.

Conducting the Process

Hard Copy

E-mail No. of Orgs.

% Orgs.

Master time schedule at design stage within office 8 75 41 33.06% between office and clients/consultants

124 35 9 80 64.51%

Detailed time schedule of works at construction stage within office 15 90 44 29.53% between office and site staff 32 54 63 42.28% between office and contractors/material suppliers and other external agencies

34 28 87 58.38%

between office and clients/consultants

149

38 5 106 71.14%

Updated construction stage time schedules within office 19 80 46 31.72% between office and site staff 40 49 56 38.62% between office and contractors/material suppliers and other external agencies

34 19 92 63.44%


145

41 4 140 96.55%

Project performance reports for time schedules within office 13 74 47 35.07% between office and site staff 28 52 54 40.29% between office and contractors/material suppliers and other external agencies

43 23 68 50.74%


134

36 8 90 67.16%

Variance analysis reports for time schedules within office 7 63 34 32.69% between office and site staff 14 49 41 39.42% between office and contractors/material suppliers and other external agencies

26 21 57 54.80%


104

22 2 80 76.92%

Cost estimates for the project within office 3 93 53 35.57% between office and clients/consultants

149 13 11 125 83.89%

Detailed Cost schedule/cash flow for the project within office 10 82 53 36.55% between office and site staff 24 75 46 31.72% between office and contractors/material suppliers and other external agencies

38 42 65 44.82%


145

25 8 112 77.24%

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Table 5.30 Continued Cost variance reports within office 9 78 38 30.40% between office and site staff 16 61 48 38.40% between office and contractors/material suppliers and other external agencies

24 40 61 48.80%


125

15 11 99 79.20%

Design changes by different consultants communicated to consultants and clients

149 11 53 85 57.04%

Stage IV

The perceived barriers and benefits of effective adoption of ICT were identified from

the literature and after discussion with the experts in the industry. Section III of the

questionnaire assessed the importance of each identified perceived barrier and

benefit as described in Secs. 5.7.1 and 5.7.3. ‘Non-dependability of IT infrastructure’

is not perceived as an important barrier with the mean value of 2.87 and ‘Reduced

Hard copy filing/storage of documents/drawings for the projects’ is perceived as

moderately important benefit with the mean value 3.81 (Table 5.31). This validates

the Stage II analysis that information is still primarily stored as hard copy as well as

electronic copy.

Table 5.31: Descriptive Statistics for the Perceived Factors

Perceptions Mean Std.

Deviation

Non-dependability of IT Infrastructure 2.87 1.18 Reduced Hard copy filing/storage of documents/drawings for the projects 3.81 1.21

Above 4 stages of data analysis support that these are cultural factors which require

consideration: even though IT infrastructure is found dependable, most of the e-mails

are followed by phone calls for confirmation of receipt of e-mails and fast decision

making and the hard copy storage of documents at head offices is still substantial and

has not reduced even if the electronic data back up is maintained. At the site offices,

information is primarily stored as hard copies. Also, most of the e-mails are followed

by hard copies.

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Cultural Factor 4: Personal meetings are still preferred over teleconferences and

other e-meeting solutions for managing building construction

projects.

This cultural factor has been found significant as Hypothesis HD6 and this cultural

factor of the Indian construction industry is a reflection of the Indian society.

Gudykunst (1991, p.51) suggests that members of low-context and individualistic

cultures tend to communicate in a direct fashion while members of the high-context

collectivistic cultures tend to communicate in an indirect fashion (Tone 2005). Indian

society falls in the second category and indirect communication could be understood

as communication substantially transmitting tacit information and achieved by

meeting personally. Thus, in the present scenario, with dependable IT infrastructure

available, substantial paper information is communicated through e-mail, but

personal meetings are still preferred over teleconferences and other e-meeting

solutions for managing building construction projects.

5.8 Issues Identified from the Open Ended Questions

The respondents were asked to list any capacity, functionality or performance issues

that are required to be addressed for the head office and the site office IT systems. It

was an open-ended question included in the Section I of the questionnaire to identify

more issues considered important by the respondents regarding ICT adoption. 30%

respondents identified issues for the head offices and 30% for the site offices. Table

5.32 shows the identified issues.

Study of the identified issues indicates that the managerial or strategic planning

issues as well as the technical issues require attention at the organization level for

effective adoption of IT infrastructure for communication as well as for other

functions.

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Table 5.32: Identified Issues that are required to be Addressed At Head Office At Site Offices

Managerial Issues Systems should be periodically upgraded Systems should be periodically upgraded Software should be periodically upgraded Software should be periodically upgraded Key site staff should be more IT aware and

proficient Technical Issues

Latest virus scans required to counter the problem of viruses getting in the systems through Internet

Faulty telephone connection in far-off project sites

Data Security system should be adequate Connectivity through Internet is poor in remote project sites and downtimes are very high

Online access of large drawings requires attention

Data security issues need to be addressed

Frequent slowdown of server needs to be addressed

5.9 Findings of Data Analysis and Further Analysis Requirement

The questionnaire survey data analysis discussed in this chapter was quantitative data

analysis. It led to the following findings in conformity with the purposes of

conducting the questionnaire survey.

5.9.1 Identified Issues for Actions Required at the Level of Industry,

Organization or People

1. Use of ICT is primarily defined by the clients’ requirements.

All the surveyed organizations perceived that ICT adoption for building project

management leads to significant benefits and the rate of increase of ICT adoption for

project management in last 5 years has been found considerable. But SMEs’ ICT

adoption for project management has not reached a high maturity level, since

majority of the surveyed organizations do not have a communication management

strategy and their ICT adoption is primarily project specific and not organization

specific. Also, ICT adoption for projects is primarily defined by the clients’

requirements. Increase in ICT adoption in the construction industry is driven by the

industry requirements. Most important perceived driver is increased requirement of

the clients for more project information resulting in the increased adoption of ICT.

Action required: Industry level

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2. Strategic initiatives are required to be taken by the professional bodies

and large organizations in the industry.

Study of data regarding perceived barriers and enablers shows that strategic

initiatives are required to be taken by the professional bodies and large organizations

in the industry: to address administrative and managerial issues; to provide training

and education to the construction students and executives; to create an atmosphere in

the industry for collaborative maturity or trust between the project team members for

sharing information; to prepare electronic databases which should be available for

the SMEs within the industry; to develop integrated systems for information sharing

in the industry; and to initiate standardization of data etc.

In this aspect, example of the Japanese construction industry is relevant. As reported

by Pena Mora and Tanaka (2002), during the Bubble Economy, an unprecedented

business boom of 1980s, general contractors in the country streamlined their work

processes and workforce to cope with the increased number of construction projects.

They also invested in the IT infrastructure and to make the most of it, they promoted

research and development (R&D) and experienced increase in productivity, which

further pushed the purchase of new technology and the need for more R&D, creating

a reinforcing loop. Consequently, the Bubble Economy provided Japanese general

contractors an opportunity to reinforce IT infrastructures. In addition, the Bubble

Economy provided Japanese general contractors a chance to apply appropriate IT

systems in order to utilize their infrastructures and resources. For example, Kajima

established the KI (Kajima Intelligent) network system as an information

infrastructure that allows high-speed digital data transfer inside Kajima. To

summarize, although the Japanese general contractors experienced financial

difficulties after the collapse of the Bubble Economy, the investments that the

contractors had made during the time provided a good foundation on which later IT

investments could flourish.

Similar industry level strategic initiatives are required to be taken in the Indian



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3. Large organizations and professional bodies are required to take a pro-

active approach and establish benchmark practices for ICT adoption for

building project management.

Study of Industry drivers shows that at present there is increased construction

activity in the country driving high ICT adoption and there is also increased

involvement of geographically separated agencies. As per data analysis, construction

executives perceive that Industry level initiatives are very important. This analysis

and literature review identifies that this is the scenario in which benchmark practices

for use of ICT should be established.


4. Cost of IT infrastructure is perceived high by SMEs.

Majority of the organizations consider high cost of ICT infrastructure and the cost of

upgrading for latest software/hardware as an important barrier for effective adoption

of ICT. This affects collaborative work required for the construction projects. Thus,

cost of IT infrastructure should be made affordable for SMEs through incentives


5. Connectivity through Internet is poor in remote project sites and

downtimes are very high.

National level bodies should set up forums for providing consultancy to SMEs for

adopting appropriate technological solutions for the remote project sites.


6. Collaborative use of ICT is less as compared to internal use of ICT

within the organizations.

Building project management requires collaborative working and collaborative use of

ICT. But, data analysis shows that the collaborative use of ICT is significantly less as

compared to the internal use of ICT in the Indian construction industry.

Action required: Industry and organization level

7. For high-level ICT adoption, organizations or the people should perceive

high benefits and low barriers for effective adoption of ICT for building

project management.

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Surveyed Organizations perceive medium to high-level barriers and benefits of ICT

adoption. Perceptions of the individuals for use of technology are defined by their

education/training and experience of using that technology.


8. Training and education of construction students and executives is

important.

‘Education of users for effective use of ICT and its benefits’ and ‘More accessible

and less costly ICT training for executives’ are important enablers for increasing

effective adoption of ICT for building project management. But the former enabler

has a higher ranking. It shows that there is paucity of avenues for training students

and executives and such avenues are required to be setup.


9. Use of higher technology is required.

Majority of the organizations have LAN connection, but very few have Intranet

facility. Personal meetings are still preferred over teleconferencing and

videoconferencing is still not a norm in the industry. Electronic information is

communicated not only through Internet, but also through the data storage media.

Mobile Internet is being used by few organizations and comprehensive web based

project management has also not been adopted in the industry. Use of higher

technologies like RFIDs and bar coding for materials management have not been

initiated in the construction industry, even though in India, in other industries like

manufacturing and retail industries it is a norm.

Action required: Industry and Organization level

10. Extent of use of ICT for building project management differs for three

groups of sample organizations i.e. PMCOs, Builders and Architectural

organizations and decreases in this order.

This issue was found valid in hypothesis HS3. Data analysis identified differential

adoption of formal project management processes in three groups of organizations as

one of the reasons leading to differential use of ICT for building project management

by three groups of organizations. More reasons and factors require further study.

Action required: Industry and Organization level

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11. Organizations should have a communication management strategy for

the organization and for each project.

Organizations should strategically plan for the future use of ICT by their

organizations. The plans should be aligned with their business plans. Methodologies

should be developed for quantifying benefits of ICT adoption and senior

management should champion the cause of ICT adoption in their organizations. For

each building project, communication management plans should be developed,

defining formats and periodicity of the reports, meeting schedules and

communication methods to be used for each process.

Some respondents have identified managerial or strategic planning issues as well as

technical issues, which require attention at the organization level.

Action required: Organization level

12. IT infrastructure at the project sites and IT capability of the site staff is

an important factor and needs improvement in the Indian construction

industry.

IT infrastructure at the project sites and IT capability of the site staff is a factor that

needs consideration and it has been found that organizations with higher percentage

of site staff with access to computers have higher ICT adoption. But, data analysis

showed that even though in majority of the surveyed organizations, more than 80%

of the office staff has access to computers, in only about 20% organizations more

than 80% of the site staff has access to computers. This factor is also reflected in the

results that the collaborative use of ICT is less as compared to the internal use of ICT

within the organization as collaborative use would be more at the construction stage

and would involve the site office.

This factor is also supported by the analysis conducted to identify the cultural factors

(Sec. 5.7). Data analysis showed that at the head offices as well as at the sites,

information is primarily stored as hard copies as well as electronic copies. Some

organizations keep only hard copy backups at head offices and at sites, though more

organizations keep only hard copy backups at sites. Also, for each identified PM

process, number of organizations using mixed communication methodology (i.e hard

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copy + e-mail) are more for communication ‘between office and site staff’ as

compared to the communication ‘within office’.


13. E-tendering is not a norm in the industry.

Data analysis summarized that about 61% respondent organizations are primarily

receiving bids as hard copies only and only 29% organizations are primarily

receiving bids as e-mails only. All the organizations conduct tender meetings and

negotiations through personal meetings. This is an industry level trend, but requires

action at the organization level.


5.9.2 Cultural Factors that are required to be considered.

Every regional area has distinct cultural factors that are required to be considered for

technology diffusion in an industry in that area. Following cultural factors have been

identified in data analysis.

C1: Communication in which e-mail is followed by phone calls is significant

C2: Hard copy storage of data and documents is substantial even if electronic copies

are also kept as a backup

C3: Most of the e-mails are followed by hard copies.

C4: Personal meetings are still preferred over teleconferences and other e-meeting

solutions for managing building construction projects.

Fig. 5.16 summarizes the identified issues and cultural factors at each level of study.

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5.9.3 Issues that require Further Study

1. The extent of use of ICT for building project management differs for three

groups of sample organizations i.e PMCOs, Builders and Architectural

organizations and decreases in this order (Further discussed in Sec. 6.7.2).

2. Validation of the identified cultural factors and dimensions of other factors

that require qualitative assessment.

Data analysis results were found significant. Thus, based on the data analysis results

of the questionnaire, a benchmarking framework was developed for rating

construction organizations for ICT adoption for building management. It is discussed

in Chapter 7.

Fig. 5.16: Identified Issues and Cultural Factors

Issues that Require Action at the Industry Level 1. Use of ICT is primarily defined by clients’ requirements 2. Strategic initiatives are required to be taken by the professional bodies and large

organisations in the industry 3. Large organizations and professional bodies are required to take a pro-active approach and

establish benchmark practices for use of ICT for building project management 4. Cost of IT infrastructure is perceived high by SMEs 5. Connectivity through Internet is poor in remote project sites and downtimes are very high

Issues that Require Action at Industry and Organization Levels 6. Collaborative use of ICT is less as compared to internal use of ICT within the organizations 7. For high-level use of ICT, organizations or the people should perceive high benefits and

low barriers for effective use of ICT for building project management 8. Training and education of construction students and executives is important 9. Use of higher technology is required 10. Extent of use of ICT for building project management differs for three groups of sample

organizations i.e PMCOs, Builders and Architectural organizations and decreases in this order.

Issues that Require Action at the Organization Level 11. Organizations should have a communication management strategy for the organization and

for each project 12. IT infrastructure at project sites and IT capability of site staff is an important factor and

needs improvement in the Indian construction industry 13. E-tendering is not a norm in the industry

Cultural Factors to be considered at the Level of Organization and People C1. Communication in which e-mails sent by a construction professionals are followed by

phone calls are significant C2. Hard copy storage of data and documents in organizations is substantial even if electronic

copies are also kept as a backup C3. Most of the e-mails communicated from an organization are followed by hard copies C4. Personal meetings are still preferred by construction professionals over teleconferences and

other e-meeting solutions for managing building construction projects

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5.10 Summary

The questionnaire survey data analysis discussed in this chapter tested two groups of

hypotheses, and studied formal project management processes conducted in the

industry and ICT adoption for these processes. Data analysis also helped in:

determining the status of adoption of ICT tools and technologies in the industry;

identifying issues that need action at industry and organization levels; identifying

cultural factors; identifying importance of perceived benefits, barriers and enablers

for effective ICT adoption and issues that require further study. Significant data

analysis results led to the development of a benchmarking framework, which is

discussed in Chapter 7. Structural Equation Modeling Analysis on the questionnaire

survey data is discussed in Chapter 6.

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Chapter 6: SEM Analysis on Questionnaire Survey Data

CHAPTER 6

STRUCTURAL EQUATION MODELING ANALYSIS ON

QUESTIONNAIRE SURVEY DATA

6.1 Introduction

In this chapter, the Structural Equation Modeling (SEM) technique has been applied to

test the causal relationships between the identified factors affecting the extent of

adoption of ICT by SMEs for building project management. Analysis has been

conducted on the questionnaire survey data. Hypotheses testing the causal relationships

were formulated in Chapter 3 and 4 and the structural model derived from these

hypotheses is tested. Findings and observations from the analysis are reported.

6.2 Structural Model Derived from the Hypotheses of Causal Relationships

Structural model of causal relationships between quantifiable factors affecting ICT

adoption for building project management was derived from the ‘Hypotheses of causal

relationships’ formulated in Chapter 3 and 4. For a quick reference, these hypotheses are

presented below.


positively affects ICT adoption for communicating information with respect to

those processes.

HR3: Geographical separation of project team members positively affects ICT

adoption for building project management processes.

HR4: Perceived benefits of ICT adoption positively affect ICT adoption for building

project management processes.

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HR5: Perceived barriers for effective ICT adoption negatively affect ICT adoption for








HR9: Perceived barriers for effective ICT adoption negatively affect ICT adoption by


Structural Model derived from these hypotheses is shown in Fig. 6.1. Nomenclature for

the macro variables or the factors is as shown in Chapter 3 (Table 3.1).

SEM has been utilized as a confirmatory analysis technique to test Hypotheses HR2 and

HR6, where the objective was to determine the strength and the significance of the

relationships among the specified factors. But, it has been used as an exploratory

technique to test Hypotheses HR3 - HR5 and HR7 - HR9 that leads to the final model

building. A systematic, iterative process was used to determine which paths and factors

should be eliminated from the hypothesized model. Item elimination was based on weak

loadings, path significance and theoretical determination.

6.3 Model Specification

The hypothesized model is a recursive model. Details of the model specifications are

shown in Table 6.1 and the hypothesized model is shown in Fig. 6.2. The measurement

of each of the factors was operationalised using a set of questions in the questionnaire.

Since the questionnaire was developed based on a detailed review and understanding of

the factors, it was ensured that the contents of the factors were adequately addressed.

The micro variables measuring the factors are as listed in Table 3.1. Factor OF5 is

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measured directly by two questions of the questionnaire, while indicators of the other

five factors are composite variables presenting aggregate data of multiple questions from

the questionnaire. IT infrastructure maturity is measured in Factor OF3 as it is necessary

to support the use of ICT. Thus, it is a supportive investment and is required to be

measured.

Factors OF5, PF2 and PF3 are exogenous variables. Factors OF3, OF4 and the Final

factor are endogenous variables in the path model and have a disturbance (dn) attached

with each of them. The disturbances represent all causes of an endogenous variable that

are not explained by the presumed causes and are omitted from the model (Kline, 1998).

The indicators or the micro variables are attached with unique variances, i.e. the

indicator variances unexplained by the factors. Such variance is termed as measurement

error (en). Like disturbances in the path models, measurement errors are proxy variables

for all the sources of residual variance that are not explicitly represented in the model

(Kline 1998, p.58).

In the hypothesized model, 39 free parameters were estimated with 66 degrees of

freedom.

Fig. 6.1: Structural Model Derived from the Hypotheses of Causal Relationships

Factor OF4: Use of

advanced software for

individual PM processes

Factor OF3: Use of

ICT for general

administration

Factor OF5: Geographical

separation of project team

members

Final Factor: Use of ICT

for Building Project

Management

Factor PF2:

Perceived

Benefits

Factor PF3:

Perceived

Barriers

HR7 HR3 HR4

HR8

HR5 HR9

HR6 HR2

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Table 6.1: Model Specification Micro variables/Indicators/Manifest variables Factors

Label Description

geo_sep1 Percentage of projects on which the

organization has interacted with

geographically separated agencies

within India in last 5 years

OF5: Geographical separation of project team

members

geo_sep2 Percentage of projects on which the

organization has interacted with

overseas agencies in last 5 years

ben_tete Benefits related to effective team

management and use of technology

PF2: Perceived benefits of ICT adoption for building

project management

ben_orgp Benefits related to increased

organizational efficiency and

measures of project success

bar_ind Industry related barriers PF3: Perceived barriers for effective ICT adoption

for building project management bar_teop Technology, organizations and

projects related barriers

ictgeni Infrastructure maturity for use of ICT

for general administration

OF3: Use of ICT for general administration

ictgenu Extent of use of ICT for general

administration

tim_too IT Tools utilized for Project Time

Management processes

cos_too IT Tools utilized for Project Cost

Management processes

OF4: Use of advanced software for individual

processes of Building Project Management

adm_too IT Tools utilized for Project

Administration and Resource

management processes

tim_ic Extent of ICT adoption for Project

Time Management processes

cos_ic Extent of ICT adoption for Project

Cost Management processes

Final Factor: Use of ICT for Building Project

Management

ad_c_ic Extent of ICT adoption for Project

Administration and Resource

management processes

Measurement Error Terms

e1 – e14 attached with the manifest variables or indicator variables

Disturbances

d1 – d3 attached with the endogenous variables

Covariances

Covariance between all the exogenous variables is shown through double arrow curved lines

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6.4 Structural Equation Modeling (SEM)

The introduction to SEM analysis is given in Chapter 3 (Sec. 3.5.2.6). SEM can be

viewed more as a confirmatory rather than an exploratory technique (Kline 1998, p.9;

Kanungo and Savla 2005). But, some researchers have also used it as an exploratory

technique to build a model (Prahinski and Benton 2004, Yen and Gwinner 2003).

Fig. 6.2: Hypothesized Model to be tested

Final Factor

tim_ic cos_ic ad_c_ic

e10 e9 e8

d3 1

1 1 1

1

Factor OF5

geo_sep1 geo_sep2

e1 e2

1 1

1

Factor OF4

d2

tim_too cos_too adm_too

e3 e4 e5

1 1 1

1

1

Facto

r PF

2

ben

_tete

ben

_org

p

1

e11

1

e12

1

Factor OF3

ictgeni ictgenu

e7 e6

1 1

d1

1

1

Facto

r PF

3

bar_

teop

b

ar_in

d

e14

1

e13

1

1

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Multiple regression is a part of the SEM technique. But regression analysis leads to

misleading results in purely observational studies in which all the variables are subject to

measurement error or an uncontrolled variation (Jöreskog et al. 2000 cited in Datta

2003). Maximum likelihood estimation is one of the techniques used in SEM analysis. It

is a combination of regression, path and factor analysis.

The basic statistic in SEM is covariance, even though the other types of data such as the

means can also be analyzed (Kline 1998, p.9). Covariance represents the association

between two variables X and Y and their variabilities. It is also referred to as an

unstandardised correlation because it has no bounds on its lower or upper values. A

covariance conveys more information as a single number statistic than a correlation

(Kline 1998, p.10).

SEM consists of two components, a measurement model and a structural model (Meyer

and Collier 2001). In the hypothesized model, the measurement model includes the

relationships between the factors and the questionnaire items (indicators) that

operationalize measurement of those factors. It assesses how well the observed variables

(indicators) reflect unobserved or latent variables (factors). The Structural model

statistically represents the hypothesized structure and testifies the causal relations

between latent variables (factors).

Every latent variable or a factor must have a scale and to achieve this, the loading of one

indicator per factor is fixed equal to 1.0, which gives the factor the same scale as that of

the indicator. Based on the same rationale, the residual path coefficient for the direct

effect of a measurement error term on its indicator in the measurement model and that of

the disturbance on the endogenous variables in the structural model is also fixed equal to

1.0 (Kline, 1998). Fig. 6.2 indicates the path coefficients fixed equal to 1.0.

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6.5 Data Collection

Data for the analysis was collected through the Questionnaire Survey (Ref. Appendix

A). Details of the questionnaire design, survey population, validation of the

questionnaire, pilot survey and the survey administration have been discussed in Chapter

3 (Sec. 3.5.2). Section I of the questionnaire provided data for measuring Factors OF3

and OF5, Section II provided the data for Factor OF4 and the Final Factor, and Section

III provided the data for Factors PF2 and PF3.

Sample size must fulfill the requirements of efficiency, representativeness, reliability

and flexibility (Kothari 2005, p.55-68). SEM is a large sample size technique and the

preferred sample size in SEM is 5-10 times the number of free parameters in the causal

model (Kline 1998, p.111-112). In the hypothesized model, the number of free

parameters was 39 and the required sample size was 195 – 390. As discussed in Chapter

5 (Sec. 5.2), actual sample size was 149.

6.6 Analysis

The model was tested on AMOS 5.0, a software used for formulating, fitting and testing

structural equation models to observed data. The program can be used to calculate and

analyze linear structural relationships between latent constructs or factors contained in

recursive or non-recursive path models.

The input for structural equation model estimation was the data file compiled in SPSS

statistical estimation software and converted as a covariance matrix by AMOS for

analysis. Maximum likelihood estimation, the method employed by most researchers

and the default estimation method in most structural equation modeling software

packages including AMOS is used.

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To make the absolute scores of composite indicator variables comparable,

standardization or normalization scoring technique was used. The standardized score for

each factor has been calculated using the following formula (Ajitabh 2003).

Standardised scoreij = (Averagej – Scorej)/Standard Deviationj

Where, Scorej = Score of organization i on criteria j

Averagej = Average of scores on criteria j

Standard Deviationj = Standard deviation of scores on criteria j

6.6.1 Data Validity

SEM analysis requires data to be tested for content validity, construct reliability,

multicollinearity, linearity and multivariate normality (Kline 1998, p.67-91).

Content validity was dealt with at the stage of designing the questionnaire (Chapter 3,

Sec. 3.5.2.3). Cronbach’s alpha (α) was calculated to determine construct reliability and

results have been shown in Table 5.1. Reliability comes to the forefront when variables

developed from the summated scales are used as predictor components in the objective

models (Santos, J.R.A, 1999). Multicollinearity occurs when intercorrelations among

some variables are so high that what appear to be separate variables actually measure the

same thing. This may prevent the estimation of the model (Kline 1998, p.77).

Multicollinearity is checked through Pearson correlation. Correlation between all the

indicator variables is less than 0.7 (Ref. Appendix C), where as 0.85 is the acceptable

limit (Kline 1998, p.78). Linearity of the variables is also established since correlation

between the variables is significantly different than 0. Multivariate normality of the

variables is checked through the calculation of multivariate kurtosis value. Its value for

the hypothesized model variables is 6.324, which is within the acceptable range.

6.6.2 Statistical Results and Analysis of the Hypothesized Model

Model estimation calculates the weights of the causal paths between the factors and also

calculates factor loadings between the factors and the indicator variables. Table 6.2

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shows unstandardised regression weights or estimates for the path coefficients and factor

loadings for the hypothesized model. Path coefficients from Factor OF5 to the Final

factor, Factor PF2 to the Final factor, Factor PF3 to the Final factor, and Factor PF3 to

Factor OF3 are not significant. Also path coefficient from Factor OF5 to the Final factor

is negative, which is not acceptable.

Table 6.2: Regression Weights/Path Coefficients and Factor Loadings Hypothesized

model

Modified Model-

Step 1

Modified Model-

Step 2 Modified Model-Step 3

Unstandardised Unstandardised Unstandardised Unstandardised Standardised

F. OF3 <--- F. OF5 0.876*** 0.876*** 0.854*** 0.865*** 0.753

Final F. <--- F. OF5 -0.028(p=0.817)

F. OF3 <--- F. PF2 0.35*** 0.352*** 0.294*** 0.304*** 0.298

Final F. <--- F. PF2 0.042(p=0.604) 0.052 (p=0.467)

F. OF3 <--- F. PF3 -0.18(p=0.334) -0.186 (p=0.318)

Final F. <--- F. PF3 -0.225(p=0.124) -0.235 (p=0.096) -0.181(p=0.089)

F. OF4 <--- F. OF3 0.735*** 0.732*** 0.731*** 0.727*** 0.862

Final F. <--- F. OF4 0.692*** 0.662*** 0.677*** 0.633*** 0.865

geo_sep1 <--- F. OF5 1.553*** 1.549*** 1.569*** 1.581*** 0.886

geo_sep2 <--- F. OF5 1 1 1 1 0.736

ben_tete <--- F. PF2 1 1 1 1.045*** 0.897

ben_orgp <--- F. PF2 0.971*** 0.969*** 0.984*** 1 0.858

bar_ind <--- F. PF3 1.316*** 1.315*** 1.366***

bar_teop <--- F. PF3 1 1 1

ictgeni <--- F. OF3 0.913*** 0.912*** 0.917*** 0.911*** 0.798

ictgenu <--- F. OF3 1 1 1 1 0.875

tim_too <--- F. OF4 1 1 1 1 0.738

cos_too <--- F. OF4 0.906*** 0.908*** 0.910*** 0.911*** 0.671

adm_too <--- F. OF4 0.693*** 0.690*** 0.699*** 0.677*** 0.499

tim_ic <--- Final F. 1 1 1 1 0.54

cos_ic <--- Final F. 0.901*** 0.902*** 0.912*** 0.9*** 0.486

ad_c_ic <--- Final F. 1.456*** 1.456*** 1.477*** 1.482*** 0.8

***Significant at p<0.001 level (2-tailed)

Table 6.3 shows covariance between the exogenous variables. Covariance between

Factors PF2 and PF3 is significant. But, the other two covariance measurements are not

significant.

Table 6.4 shows the estimates for exogenous variables, Factors OF5, PF2 and PF3, and

the measurement errors and disturbances. The estimate for disturbance d3 is not

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significant at p<0.05. Appendix C shows the hypothesized model with values of

significant unstandardised path coefficients, factor loadings, covariance and estimates.

Table 6.3: Covariance between Exogenous Variables Hypothesized

model

Modified Model-

Step 1

Modified Model-

Step 2

Modified Model-

Step 3

Unstandardised Unstandardised Unstandardised Unstandardised

F. OF5 <--> F. PF3 0.077(p=0.137) 0.078(p=0.130) 0.069(p=0.161)

F. OF5 <--> F. PF2 0.079(p=0.238) 0.079(p=0.239) 0.08(p=0.224) 0.09(p=0.166)

F. PF3 <--> F. PF2 0.262*** 0.262*** 0.247***

***Significant at p<0.001 level (2-tailed)

Model fit indices were calculated and are reported in Table 6.5. The root mean square

error of approximation (RMSEA) is a measure of model fit that is not dependent on the

sample size (Steiger 1990; Browne and Mels 1994; Hair et al. 1995 cited in Meyer and

Collier 2001). Many other fit measures (e.g. Chi-square, goodness of fit index) are

highly dependent on the sample size (Kline, 1998). The following guidelines are used to

determine the model fit using RMSEA: RMSEA<0.05, good model fit;

0.05<RMSEA<0.10, reasonable model fit; RMSEA>0.10, poor model fit (Browne and

Cudeck 1993; Browne and Mels 1994 cited in Meyer and Collier 2001). The RMSEA

value of 0.076 indicates a reasonable model fit.

The Chi-square test for the overall model fit has a value of 122.642 and is significant.

It’s a test of significance of the difference in the fit between the model and a just-

identified version of it. Jöreskog (1969) suggests dividing Chi-square by the degrees of

freedom in the model to calculate the normed Chi-square (Meyer and Collier 2001). For

this model, the normed Chi-square value is 1.858 (122.642/66) and indicates a

reasonable model fit. A normed Chi-square value of less than 1.0 indicates that a model

is overfitted, i.e. estimates too many paths (Jöreskog 1969), while a value greater than

3.0 indicates that a model does not adequately represent the observed data and may need

improvement (Carmines and McIver 1981 cited in Meyer and Collier 2001)

Other indices are also calculated. Indices that describe the overall proportion of the

explained variance, Jöreskog –Sörbom Goodness of Fit index (GFI), Bentler-Bonett

Normed fit index (NFI) and Comparative fit index (CFI), have values 0.888, 0.862 and

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0.929 respectively. Values greater than 0.9 for these indexes indicate good model fit

(Kline 1998, P.131) and should range from zero (not fit at all) to 1.0 (perfect fit) (Meyer

and Collier 2001). So, for the hypothesized model, GFI and NFI values indicate

reasonable model fit whereas CFI indicates good model fit. Parsimony ratio of 0.725

indicates a reasonable model fit.

The model fit indices indicate a reasonable model fit. But, the regression weight or path

coefficient for the path from Factor OF5 to the Final factor is negative and is also not

significant. Thus, the model does not support Hypothesis HR3 and was modified based

on the above analysis results (Fig. 6.3). Refer to Fig. 6.1 for comparison.

6.6.3 Model Modification – Step 1

Based on the results discussed above, path from Factor OF5 to Final factor was deleted

from the model and further analysis was conducted. The modified model had 38 free

parameters with 67 degrees of freedom.

Analysis results for the modified model (Step 1) are reported in the relevant tables. As

seen from Table 6.2, paths from Factor PF2 to the Final factor and Factor PF3 to Factor

Fig. 6.3: Modified Structural Model – Step 1

Factor OF4: Use of



Factor OF3: Use of

ICT for general

administration



members



Management

Factor PF2:

Perceived

Benefits

Factor PF3:

Perceived

Barriers

HR7 HR4

HR8

HR5 HR9

HR6 HR2

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OF3 were not significant and the p levels were very high. Thus the modified model does

not support Hypotheses HR4 and HR9.

Path from Factor PF3 to the Final factor was also not significant, but the p level had

improved from the last iteration and was close to the required significance level (0.05).

There was no significant improvement in the covariance measurements (Table 6.3). The

estimate values of the exogenous variables and the disturbances and measurement errors

remained primarily unchanged. The estimate of ‘d3’ was still not significant, but the p

value had improved (Table 6.4). The model fit indices still showed a reasonable model

fit (Table 6.5). Appendix C shows the modified model (Step 1) with the values of

significant unstandardised path coefficients, factor loadings, covariance and estimates.

6.6.4 Model Modification – Step 2

Based on the above results, the model was further modified and paths from Factor PF2

to the Final factor and Factor PF3 to Factor OF3 were deleted and further analysis was

conducted. The new modified model had 36 free parameters with 69 degrees of freedom

(Fig. 6.4). Refer to Fig. 6.3 for comparison with the previous model.

Fig. 6.4: Modified Structural Model – Step 2

Factor OF4: Use of



Factor OF3: Use of

ICT for general

administration



members



Management

Factor PF2:

Perceived

Benefits

Factor PF3:

Perceived

Barriers

HR7

HR8

HR5

HR6 HR2

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seen in Table 6.2, the path from Factor PF3 to the Final factor was still not significant,

even though the p value had improved from the last iteration. There was no significant

improvement in the covariance measurements (Table 6.3). Estimate values of the

exogenous variables and the disturbances and measurement errors were primarily the

same. The estimate of ‘d3’ was still not significant, but the p value had improved (Table

6.4). The model fit indices still showed a reasonable model fit (Table 6.5).

Table 6.4: Estimates

Hypothesized

model

Modified

Model-Step 1

Modified

Model-Step 2

Modified

Model-Step 3

F. OF5 0.587*** 0.589*** 0.582*** 0.577***

F. PF2 0.788*** 0.789*** 0.778*** 0.732***

F. PF3 0.287** 0.287** 0.281**

d1 0.207*** 0.208*** 0.222*** 0.224***

d2 0.12* 0.125** 0.121** 0.139**

d3 0.055(p=0.148) 0.058(p=0.113) 0.059(p=0.101) 0.073*

e1 0.418*** 0.422*** 0.402*** 0.393**

e2 0.478*** 0.477*** 0.484*** 0.489***

e3 0.466*** 0.462*** 0.469*** 0.453***

e4 0.563*** 0.558*** 0.561*** 0.547***

e5 0.741*** 0.741*** 0.738*** 0.746***

e6 0.365*** 0.364*** 0.359*** 0.361***

e7 0.239*** 0.237*** 0.24*** 0.233***

e8 0.699*** 0.699*** 0.705*** 0.703***

e9 0.754*** 0.754*** 0.753*** 0.759***

e10 0.37*** 0.371*** 0.364*** 0.357***

e11 0.207* 0.206* 0.217* 0.195*

e12 0.251** 0.252** 0.24** 0.262**

e13 0.495*** 0.497*** 0.468**

e14 0.706*** 0.706*** 0.712***

* Significant at p<0.001 level (2-tailed)

** Significant at p<0.01 level (2-tailed)

*** Significant at p<0.05 level (2-tailed)

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Appendix C shows the modified model (Step 2) with the values of significant

unstandardised path coefficients, factor loadings, covariance and estimates. As discussed

earlier, for SEM analysis required sample size is 5-10 times the number of free

parameters. So, for this model, with 36 free parameters, the required sample size was

180-360. But, the actual sample size was 149. So, it can be assumed that the effect of

Factor PF3 on the Final factor could be found significant, if the sample size was

increased. Since, in three iterations, not much improvement was observed in the path

coefficient estimates from Factor PF3 to the Final factor, Factor PF3 was dropped from

the model. Thus the modified model does not support Hypothesis HR5.

6.6.5 Model Modification – Step 3 (Final Model)

The model was modified as discussed above and further analysis was conducted. The

modified model had 29 free parameters with 49 degrees of freedom. Fig. 6.5 shows the

final model. Refer to Fig. 6.4 for comparison with the previous model.


seen in Table 6.2, all paths were significant. Unstandardised and standardized regression

weights or estimates for the path coefficients and factor loadings are reported.

Unstandardised estimates cannot be directly compared across variables with different

scales (Kline 1998, p.18). So, standardized estimates also need to be reported.

Covariance between Factor OF5 and Factor PF2 was not significant, but the p value had

improved considerably from the last iteration (Table 6.3). Estimate values of all the

exogenous variables, the disturbances and the measurement errors were significant

Table 6.5: Model Fit Indices Overall Model Fit

Indices Hypothesized

model

Modified

Model-Step

1

Modified

Model-Step

2

Modified

Model-

Step 3

Chi-square 122.642*** 122.681*** 124.273*** 78.72**

Normed chi-square 1.858 1.831 1.801 1.607

RMSEA 0.076 0.075 0.074 0.064

GFI 0.888 0.888 0.887 0.912

NFI 0.862 0.862 0.860 0.901

CFI 0.929 0.930 0.931 0.959

Parsimony ratio 0.725 0.736 0.758 0.742

** Significant at p<0.01 level (2-tailed)

*** Significant at p<0.001 level (2-tailed)

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(Table 6.4). Appendix C shows the Final model with the values of significant

unstandardised path coefficients, factor loadings, covariance and estimates. Values of

model fit indices had improved and showed a good model fit (Table 6.5). Multivariate

kurtosis had reduced as compared to the hypothesized model and was 5.704.

Of the 66-covariance matrix residuals, absolute values of about

90% residuals were less than 0.1. Overall, with the absolute values

of residuals averaging 0.047, the model explains the relationships

among the measured dimensions to within an average error of

0.047 (Hu and Bentler 1995 cited in Meyer and Collier 2001).

Distribution of the standardized residuals is symmetrical and

primarily centered around zero (Ref. Appendix C).

Table 6.6 shows that the value of squared multiple correlation (R2)

for all the indicator variables and endogenous factors is less than

0.9, which is the acceptable limit (Kline 1998, p.78-89). Squared

multiple correlation indicates the percent variance explained in that

variable.

The revised model provides acceptable fit to the data. But, with 29

free parameters, the required sample size was 145 – 290, while the actual sample size

was 149. Thus it can be assumed that if the sample size was increased, results would

have further improved.

Table 6.6:

Squared Multiple

Correlations

Variables R2

factor OF3 0.705

factor OF4 0.742

Final factor 0.748

geo_sep1 0.786

geo_sep2 0.541

be_tete 0.804

be_orgp 0.737

ictgeni 0.636

ictgenu 0.766

tim_too 0.544

cos_too 0.451

adm_too 0.249

tim_ic 0.292

cos_ic 0.236

ad_c_ic 0.641

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6.7 Discussion and Findings

6.7.1 Discussion

The modified model is admissible. Standardized path coefficients with the absolute

values less than 0.10 may indicate a “small” effect; values around 0.30, a “medium”

effect and those greater than 0.50, a “large” effect (Kline 1998, p.118). In the model, all

the indicators specified to measure a common underlying factor have high factor

loadings on that factor, except the factor loading of indicator variable expressing ‘use of

IT tools for Project administration and resource management processes’ (adm_too) on

Fig. 6.5: Standardized Path Coefficients and Factor Loadings of Model

Modification - Step 3 (Final Model)

0.753

0.2

98

0.862 0.865

Factor OF4

d2


e3 e4 e5

1 1 1

0.738

1

0.671 0.499

Factor OF5

geo_sep1 geo_sep2

e1 e2

1 1

0.736 0.886

Final Factor


e10 e9 e8

d3 1

1 1 1

0.54 0.486

0.80

Factor OF3

ictgeni ictgenu

e7 e6

1 1

d1

1

0.875 0.798

Facto

r PF

2

ben

_tete

ben

_org

p

0.8

97

0

.858

e11

1

e12

1

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Factor OF4, which is 0.499 and the factor loading of indicator variable expressing ‘use

of ICT for Project cost management processes’ (cos_ic) on the Final factor, which is

0.486. But, these are also close to 0.5 and can be considered high. This determines

Convergent Validity of the model. Measurement errors and disturbances are very small.

All path coefficients are positive and of high magnitude, except the path coefficient

between Factor PF2 and Factor OF3 which is of medium magnitude. This implies that

they contribute significantly to the achievement of ‘use of ICT for Building Project

Management processes’.

The most important finding of this study is that the ‘geographical separation of project

team members’ and ‘perceived benefits of use of ICT for building project management’

do not independently increase ‘use of ICT for project management processes’ as

Hypotheses HR3 and HR4 are not supported by the model. They positively affect the use

of ICT for project management processes only if their effect is mediated by an increased

and matured use of ‘ICT for general administration works’ and ‘increased use of

advanced IT tools and software for individual PM processes’ as Hypotheses HR7 and

HR8 are supported by the model. This validates the Interpretive Structural Modeling

analysis results discussed in Chapter 4 and provides direction to the building project

managers for strategically adopting effective use of ICT within their organizations and

for building project management.

‘Perceived barriers’ do not affect adoption of ICT for general administration works by

project management organizations, as the model does not support Hypothesis HR9. But,

perceived barriers directly affect adoption of ICT for project management processes, as

organizations are not very sure of the benefits that can be accrued and whether all

project team organizations would be able to adopt the same level of ICT. But the effect

is not very significant and if the client requires ICT adoption for project management, it

is adopted. Thus the model does not significantly support Hypothesis HR5. The Final

Structural Model is shown in Fig. 6.6. Refer to Fig. 6.5 for comparison with the previous

model.

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Covariance, which is an unexplained association between exogenous variables Factor

OF5 and Factor PF2 is not significant. But, the p level has improved with each iteration.

So, it can be assumed that if sample size is increased, this result would improve. Model

fit indices show a good model fit to the data and the value of chi-square is significantly

reduced in last two iterations.

Out of 15 endogenous and indicator variables, 4 variables have squared multiple

correlation (R2) values less than 0.5. It indicates that there are other factors, which affect

variance of these variables and have not been included in the model. Other factors have

been identified and discussed in earlier chapters, but some of these factors such as

turnover of the organization can not be compared across all the groups of respondent

organizations. The, effect of those factors has been studied in a separate analysis.

Fig. 6.6: Final Structural Model

Factor OF4: Use of



Factor OF3: Use of

ICT for general

administration


separation between project

team members



Management

Factor PF2:

Perceived

Benefits

HR7

HR8

HR6 HR2

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6.7.2 Findings

SEM analysis leads to the following two findings discussed below:

1. Following four hypotheses were found significant.



those processes.







Analysis of these causal relationships helps us in understanding that an increased

and matured use of ICT for general administration within the organization would

lead to an improved ICT infrastructure within the organization, development of

electronic databases and the staff that is confident of using IT tools. In such a

scenario, staff would use advanced software and IT technologies for project

management processes and that would lead to an increased adoption of ICT for


But, for general administration also, ICT adoption would be enhanced if the

organization is interacting more with geographically separated agencies and the

senior management perceives that significant benefits would accrue by adoption of

ICT. All the factors are inter-related and their effect can not be maximized in

isolation.

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Summary of these results and the analysis results discussed in Chapter 5 led to the

development of the proposed benchmarking framework for rating organizations for ICT

adoption for building management. It is discussed in Chapter 7.

2. Hypothesis HR2 further validates hypothesis HS3 that ‘Extent of use of ICT

for building project management differs for three groups of sample

organizations i.e Builders, Project management consultancy organizations

and Architectural organizations’.

Hypothesis HS3 was found significant in Chapter 5 and one of the reasons identified for

the phenomenon was the difference in the extent of formal project management

processes adopted by these groups of organizations (Sec. 5.5). SEM analysis identified

another factor for further enquiry i.e ‘Increased used of software or advanced tools for

individual processes’.

Data for studying this feature was collected through Section II of the questionnaire,

where tools used for identified Time, Cost and Project Administrative and resource

management processes were identified. For each process the respondents could give

multiple responses in five categories. Fig. 6.7 shows aggregate scores for the three

groups of respondent organizations for all the identified processes.

For all Time and Cost management processes except ‘Cost estimates for the project’

scores of PMCOs, Builders and Architectural organizations are in decreasing order. For

some administrative processes also the pattern remains the same. To further analyze,

Fig. 6.8 shows overall mean and std. deviation of the scores for the three groups of

organizations. For overall mean value also the pattern remains the same. But, standard

deviation is least for PMCOs and maximum for Builders showing more variability in

responses of this group.

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Fig. 6.7: Aggregate Scores of Respondent Organizations for Tools

used for Identified Project Management Processes

0 5 10 15 20 25

Master time schedule prepared

at design stageDetailed time schedule at

construction stage Updated construction stage

time schedule

Project performance reports

for t ime schedules Variance analysis reports for

time schedules

cost estimates for the project

Detailed cash flow req for the

project

Cost variance reports

Meetings for review of

design/information/documents

Bill of quantities preparation

Tender preparation

Comparative analysis of bids

received

Purchase orders preparation

and managementMaterials management records

maintained at siteManpower resource

management records

Aggregate Scores

PMCOs

Builders

Architectural organisations

Fig. 6.8: Mean and Std. Deviation of Respondent

Organizations for Scores for Tools used for Project

Management Processes

0 50 100 150 200 250

PMCOs

Builders

Architectural

Organisations

Std. Deviation

Mean

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Thus it can be summarized that more advanced IT tools are used by PMCOs and least by

the Architectural organizations for building project management and it is one of the

reasons that ‘Extent of use of ICT for building project management differs for three

groups of sample organizations i.e PMCOs, Builders and Architectural organizations’.

Also, there is more variability among Builders for the use of advanced software or IT

tools.

6.8 Summary

Questionnaire data analysis discussed above, tested the structural model derived from

the hypotheses of causal relationships. SEM analysis was conducted as an exploratory

and confirmatory technique. Final model validates four hypotheses. Data analysis results

provide a framework for strategic adoption of ICT by project management

organizations. It further leads to the identification of an additional factor affecting

difference in ICT adoption for building project management in the three groups of

respondent organizations. Data analysis also contributes to the development of a

benchmarking framework for rating construction organizations for ICT adoption for

building project management. Chapter 7 discusses development and finalization of the

benchmarking framework.

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Chapter 7: Benchmarking Framework Development and Case Study Analysis

CHAPTER 7

BENCHMARKING FRAMEWORK DEVELOPMENT AND

CASE STUDY ANALYSIS

7.1 Introduction

The objective of the study discussed in this chapter is to provide construction

organizations with a generic framework to assess their extent of ICT adoption for

building project management processes and to measure their efficiency in implementing

their strategies for ICT adoption. The framework is also applicable at the industry level

for rating the construction organizations for ICT adoption and performance

measurement as discussed above. The chapter starts with the discussion on the

development of the benchmarking framework. Suggested benchmarking process has

four iterative stages of Benchmarking and BenchMeasurement, BenchLearning,

BenchAction and BenchMonitoring. The first two stages are discussed in detail and

administered on three organizations. A structure for the last two stages is presented.

BenchMeasurement employs Data Envelopment Analysis (DEA) technique. The

performance measurement system is complimented with performance management

system (BenchLearning) including case study analysis conducted through Situation-

Actor-Process (SAP) - Learning-Action-Performance (LAP) analysis technique. The

results and the findings are reported.

7.2 Benchmarking Framework Development

Effective ICT adoption for building project management at the national level can be

assessed by the extent to which ICT tools and technologies replace manual methods in

the information systems supporting building project management processes at the

industry level.

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In the construction industry, successful project management depends on effective inter-

organizational communication. Thus, improvement in the effective ICT adoption for

building project management at national or industry level requires improvement in ICT

adoption by all the organizations.

Measurement is one of the first steps in any improvement process (Lee et al., 2005) and

an important role of performance measurement is to enable an organization to do

benchmarking (Costa et al. 2006). As per Bendell et al. (1998), all management and

service areas are candidates for benchmarking. Thus, a consistent ICT evaluation

framework would allow benchmarking ICT adoption for building project management.

Benchmarking is defined in Chapter 2 (Sec. 2.7.2.1) and attributes of a benchmarking

framework and its administration are discussed in the introduction of the methodology in

Chapter 3 (Sec. 3.5.3).

7.2.1 Objectives of the Required Benchmarking Framework

In the context of this research, a generic ‘Benchmarking Framework’ is required to be

established to measure the extent of ICT adoption for building project management by

SMEs in the Indian Construction Industry. It should fulfill the following objectives:

• As per Bendell et al. (1998), as well as a strategy for benchmarking, at the

organization and at the national level, there is also a requirement for the

benchmarking of strategy. Thus, it should facilitate benchmarking of present

strategies and long-term strategic goals of the organization with respect to ICT

adoption for building project management processes and other processes having

causal relationship with these processes.

• The benchmarking framework should also be a performance measurement tool,

which measures efficiency of the organizations in implementing their strategies

for ICT adoption for building project management.

• It should facilitate ‘competitive benchmarking’ within SMEs in the Indian

construction industry by having a generic structure. There is a potential to learn

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and improve practices of an organization by comparing their practices with those

of the other organizations.

• Administration of the framework has to be an industry level initiative taken up

by the national level agencies in the Indian construction industry as it is indicated

in the literature that benchmarking carried out by a third party agency is

successful. This would help in conducting collaborative benchmarking, leading

to more number of organizations participating in the process. This would lead to

an improvement in ICT adoption at the industry level by creating a learning

atmosphere.

• The research is in the context of ICT adoption of SMEs of the construction

industry. As per the literature review, ICT adoption of the construction industry

is lagging with respect to other agencies. Thus, SMEs in the construction

industry can learn from the best practice primarily defined by the large

organizations of the construction industry and it would not be relevant to

compare their ICT adoption with the best practice from a parallel industry. Thus,

the benchmarking framework should facilitate establishing a ‘best-practice

benchmark’ from the construction industry.

• The benchmarking framework should be modular in structure, to accommodate

inclusion and deletion of the factors or measurement indicators as per the

changing pattern of usage of ICT in the construction industry.

7.2.2 Benchmarking Framework Development, Structure and Measurement

System

The research is in context of SMEs and with respect to SMEs it is important to

understand processes, their indicators and measures in the local context. Thus, the

benchmarking framework was derived from the questionnaire survey conducted in the

Indian Construction industry and discussed in previous chapters. Suggested

benchmarking framework is shown in detail in Appendix D.

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8 critical success factors or the performance/measurement indicators were established

after questionnaire survey data analysis discussed in Chapters 5 and 6 and ongoing

literature survey. Each indicator is measured by one or more performance measures

derived from the questionnaire as questionnaire survey data analysis provides validity,

relevance and significance of these performance measures. The measures have their own

metrics, data sources and minimum and maximum limits relevant to the industry

standards and established after questionnaire data analysis. The measures reflect the

‘Best Practice’ in the Indian Construction industry. The goal was to develop generic

measures that would be meaningful to both, the participating organizations and the

industry as a whole and would be repeatable to simplify the process of recalibration.

The measurement indicators (MIs) or the critical success factors included in the

benchmarking framework are discussed below:

Strategic use of ICT indicator (MI1) focuses on present strategic use and long-term

strategic goals of the organization with respect to ICT adoption in the organization. It is

also representative of the management’s ability to instill the necessary change to

embrace new technology with the help of training of employees, as old employees are

the key users who have vital information about the organizational processes and

systems. Employees with the ability to adapt to an ever-changing work environment will

be more receptive to new ICT applications. This indicator is measured by 7 performance

measures.

Strategic project communication indicator (MI2) measures strategic planning for use of

ICT and communication methodologies for the projects. This indicator is measured by 4

performance measures.

Measuring benefits of use of ICT indicator (MI3) is also a strategic indicator as it studies

ICT implementation benefits evaluation initiatives within the organization. The tangible

benefits in the framework include benefits related to the measures of project success

with respect to time and cost savings and can be evaluated quantitatively. The intangible

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benefits are more difficult to measure and typically include non-monetary elements

(Serafeimedis and Smithson 2000 cited in Stewart and Mohamed 2001), which are

included in the framework as benefits related to effective team management, effective

use of technology and increased organizational efficiency. These benefits can be

evaluated subjectively or qualitatively. This indicator has the greatest potential in the

information era (Stewart and Mohamed, 2001). This indicator is measured by 7

performance measures structured in a lead on format.

ICT infrastructure indicator (MI4) measures ICT infrastructure maturity at an

organization’s head office and project sites. This indicator is measured by 15

performance measures.

ICT for general administration indicator (MI5) measures extent of ICT adoption for

general administration within office and with external agencies. This indicator is

measured by 12 performance measures.

ICT for time management (MI6), ICT for cost management (MI7) and ICT for project

administration and resource management (MI8) indicators measure extent of ICT

adoption for time management, cost management and project administration and

resource management processes at different stages of the projects. These indicators are

measured by 13, 6 and 11 performance measures respectively.

Majority of the questions or the performance measures in the benchmarking framework

are included from the questionnaire administered for the questionnaire survey. Only a

few questions in the Strategic indicators MI1 and MI3 were new.

Structural Equation Modeling (SEM) analysis (Chapter 6, Sec. 6.7.2) established that

there is a causal relationship between all the suggested indicators and thus all are

required to be considered to assess extent of ICT adoption for building project

management by an organization.

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Following three hypotheses were tested and found significant after SEM analysis:







those processes.

Also in the analysis of the perceived enablers (Chapter 5, Sec. 5.6.2), components of

strategic planning for ICT adoption within an organization and for the projects have

been found as most important perceived enablers.

The above analysis helped in establishing the relationship between performance

indicators of the benchmarking framework and also defined their relative importance

leading to the establishment of weights for indicator variables (Fig. 7.1).

STRATEGIC INDICATORS MI1: Strategic use of ICT

MI2: Strategic project communication

MI3: Measuring benefits of use of ICT

USE OF ICT FOR GENERAL

ADMINISTRATION WORKS

INDICATORS

MI4: ICT infrastructure

MI5: ICT for general administration

USE OF ICT FOR BUILDING PROJECT

MANAGEMENT PROCESSES

INDICATORS

MI6: ICT for time management

MI7: ICT for cost management

MI8: ICT for project administration and

resource management

Fig. 7.1: Relationship between

Performance/Measurement

Indicators

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Above figure leads to the establishment of weights for different groups of indicators and

the formula for calculating the rating of building project management organizations as

per the benchmarking framework.

RATING VALUE= 3 (MI1 + MI2 + MI3) + 2(MI4 + MI5) + MI6 +MI7 + MI8

The detailed method of rating is shown in Appendix D. As shown in Appendix D, the

rating of an organization can range from (75-285). Divided into three equal ranges,

organizations can be rated at the following three levels:

Low rating: (75-144)

Middle rating: (145-215)

High rating: (216-285)

References in literature indicate researchers establishing such equal range levels for

benchmarking (Hamilton and Gibson Jr. 1995)

7.2.3 Benchmarking Framework and the Organization Management Information

Systems

With respect to the decision-making and management information systems, researchers

have divided an organization into a pyramid structure of three levels (Marakas 2003,

p.7-9); strategic, tactical and operational or in four levels (David and Olson 1984. p.6-9)

where tactical level is further divided into two levels. At the top of the pyramid are the

senior most executives of the organization involved in strategic planning and policy

making, second level consists of the senior managers involved in tactical planning and

implementation of the decisions taken at the strategic level, third level consists of the

middle managers involved in operational planning, decision making and control, and the

foundation of the pyramid consists of the operational level employees taking decisions

regarding day to day activities. The middle and operational level employees are involved

in regular interaction with the external agencies.

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After study of the construction industry, pyramid structure is further modified for the

construction organizations (Fig. 7.2). The lower two levels of the pyramid are further

divided as some of the employees of these levels would be at sites. At head office also

some employees of this level would be dedicated to projects coordination and some

would be conducting general administration works. All the groups of employees in the

pyramid manage information with respect to the projects and are linked with the critical

success factors. Thus the benchmarking framework indicators span all the levels of the

organization as indicated in Fig. 7.3.

Fig. 7.2: Construction Project Management Organization Structure with Respect

to Decision Making and Information Management

STRATEGIC LEVEL

TACTICAL

PLANNING LEVEL

OPERATONAL

PLANNING AND

CONTROL LEVEL

OPERATIONAL

LEVEL

SITES

SITES

OFFICE

OFFICE

PR

OJE

CT

CO

OR

DIN

AT

ION

-

OF

FIC

E

GE

NE

RA

L

AD

MIN

IST

RA

TIO

N -

OF

FIC

E

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7.2.4 Benchmarking Framework Attributes

Attributes of the developed framework are discussed below:

• The suggested benchmarking framework is developed around a generic model of

ICT adoption for building project management and was designed after mapping

of the building project management processes adopted by SMEs in the Indian

construction industry. Thus, the framework provides a common basis for

comparison between SMEs of the industry.

• The framework is stakeholder driven, as it measures extent of ICT adoption for

communicating within the organization and with external project team

organizations including the clients, consultants, contractors, material suppliers

and other external agencies.

• The framework includes leading as well as lagging indicators. as discussed in the

analysis (Sec. 7.4.2).

• The framework is forward looking as the strategic indicators assess long term

strategic goals of the organization for use of new ICT tools and technologies and

MI1

MI1, MI2

MI3, MI4

MI4, MI5,

MI6, MI7,

MI8

MI5, MI6,

MI7, MI8

MI4, MI5

MI5

MI6, MI7,

MI8

MI6, MI7, MI8

Fig. 7.3: Benchmarking Framework Indicators spanning all the

Levels of the Organizations

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maximum measurable limit of each performance measure signifies best practice

in the industry established after questionnaire survey data analysis.

• Performance measures are derived from the questionnaire and non-response bias

with respect to the questions was not experienced in the questionnaire survey.

Thus, it can be established that the measurement structure is simple and

unambiguous. Also, the suggested method of comprehending the whole

measurement structure and rating the organizations is simple and can also be

carried out by organizations as a self-analysis exercise.

• Each MI in the benchmarking framework is completely defined. Thus the

complete framework is a whole comprising of completely defined part and

organizations’ use of ICT can also be measured for each of the three components

individually.

7.3 Benchmarking Process

The suggested Benchmarking process is derived from the benchmarking frameworks

described by Fong et al. (1998) and Love and Smith (2003) and discussed in detail in the

Chapter 3 (Sec. 3.5.3.2). The suggested benchmarking process is divided into four

phases of:

• Benchmarking and BenchMeasurement

• BenchLearning

• BenchAction

• BenchMonitoring

The suggested benchmarking process is shown in Fig. 7.18 and discussed in detail in the

following sections.

Benchmarking and BenchMeasurement phase comprises of two components:

• Benchmarking to measure the extent of ICT adoption for building project

management by SMEs in the Indian Construction Industry. This would help in

rating the organizations into three levels of low, medium and high.

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• BenchMeasurement to measure the efficiency of organizations in implementing

their strategies for ICT adoption for building project management.

7.4 Benchmarking Framework Administration and Finalization

7.4.1 Benchmarked Organizations

One organization from each group of the surveyed organizations i.e Builders, Project

Management Consultancy Organizations and Architectural Organizations was selected

for benchmarking framework administration and finalization. The criterion for selection

of organizations was their extent of ICT adoption as assessed from their responses.

Organizations with higher ICT adoption were selected and approached. A semi-

structured interview was conducted with the following objectives:

Discussion of the benchmarking framework and rating of organizations as per the

suggested framework. This resulted in framework finalization, benchmarking or

measurement of ICT adoption by these organizations for building project management

processes and measurement of the efficiency of the organizations for implementing their

strategies for ICT adoption.

The senior executives who had responded for the questionnaire survey were contacted

for the semi-structured interviews. They were contacted personally and after receiving

consent from them, the interviews were conducted at a convenient time. They were

already aware of the objectives of the research study. Thus, selecting organizations from

the previous respondents helped in providing continuity to the research. Introduction of

the three organizations is given below. But, their names are not disclosed for the purpose

of confidentiality.

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Builders (BO)

Location:

The studied Builders are based in New Delhi with a branch office in Kolkata, another

metropolitan city of India.

Year of establishment:

It was setup in 1971 as a contracting organization executing soil testing and piling

works. In 1978, the organization started building construction and in 1984 the real estate

division of the organization was started.

Expertise:

Organization’s expertise is in construction and development of residential projects.

Recently it has also started construction of commercial buildings.

Organization structure:

It is headed by a chairman, two managing directors and its staff strength including the

administrative staff is upto 240. The staff strength has recently increased due to the

boom in the construction activity in the country. An in-house project management group

manages projects. Architectural services and most of the construction work are

outsourced.

Certification:

It is an ISO certified organization and regular audits are conducted with respect to this

certification.

Turnover and Value of the executed projects:

The value of each project executed by the organization ranges between INR 100 crores

to INR 300 crores (approx. 22.2 million US $ to 66.6 million US$) and turnover of the

organization is about INR 8 crores (approx. 1.8 million US $).

Project Management Consultancy Organization (PMCO)

Location:

The studied Building Project Management Consultancy organization is based in New

Delhi.

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It was setup in 1995.

Expertise:

The organization has managed a vast range of projects: from institutional buildings,

commercial building to townships.


It is headed by a managing director and has around 75 technical staff including the staff

at project sites. A trained cadre of administrative staff supports the administrative work.

The organization is planning to expand and it is envisaged that by 2008 the technical

staff strength would be doubled. Specialized works are outsourced to consultants. But,

for maintaining the quality and timely completion of work, maximum work is done

within the organization.

Certification:

It has been awarded ISO certification for ‘construction project management’ and regular

audits are conducted with respect to this certification.


The value of each project executed by the organization ranges between INR 50 crores to

INR 100 crores (approx. 11.1 million US $ to 22.2 million US$) and turnover of the

organization is between INR 2 crores to INR 4 crores (approx. 0.45 million US$ to 0.9

million US $).

Architectural Organization (AO)

Location:

The studied Architectural organization studied is based in New Delhi with a branch

office in Bangalore, another metropolitan city of India.


It was set up in 1987.

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Expertise:

The organization specializes in designing and managing institutional buildings, cultural

centers and commercial interiors. It also executes commercial interiors as a turnkey

agency.


The staff in each branch office includes 2 principals, a project architect, 2 draughtsmen,

a site engineer and the administrative staff. A site engineer is also posted at each project

site. Most of the specialized work is outsourced to consultants. The organization

collaborates with a regular team of consultants, but sometimes new consultants are also

included in the project team at clients’ reference.


The value of each project executed by the organization ranges between INR 4 crores to

INR 50 crores (approx. 0.9 million US $ to 11.1 million US$) and turnover of the

organization is upto INR 2 crores (approx. 0.45 million US$).

7.4.2 Benchmarking of Organizations and Analysis

All the three organizations were rated for all 8 MIs. Results are shown in Appendix D.

Final rating values of the organizations are as given below:

BO: 197

PMCO: 207

AO: 170

All the three organizations are in the middle level rating (145-215). BO is at higher

middle level and PMCO is almost near the upper range of the middle level. Comparison

of performance measurement values of the three organizations for all the MIs helped in

the identification of gaps in practices.

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MI1 - Strategic use of ICT

Fig. 7.4 indicates that all the three organizations except AO have a strategy for use of

ICT within the organization (MI1-1) and all the three organizations have a disaster

recovery plan in case of breakdown of IT infrastructure (MI1-2). With respect to

strategic planning for adopting higher technology: all the three organizations either plan

to adopt intranet within next 0-5 years (MI1-3) or already have it installed; BO and

PMCO plan to utilize project web sites for project management (MI1-4) in next 0-5

years, but AO has no plan for adopting this technology; all the three organizations feel

that within next 5-10 years it would be viable and imperative to adopt videoconferencing

(MI1-5). Only BO and PMCO provide training to their employees for updated IT

infrastructure and use of ICT (MI1-6) and all the three organizations either have an in-

house IT department or take services of IT consultants for planning, implementing and

maintaining IT systems (MI1-7).

Fig. 7.4: Comparison of Performance Measures Values

of MI1

0 1 2 3

MI1-1

MI1-2

MI1-3

MI1-4

MI1-5

MI1-6

MI1-7

Values

Best Practice Value

BO

PMCO

AO

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MI2 - Strategic project communication


of MI2

0 1

MI2-4

MI2-3

MI2-2

MI2-1

Values

Best Practice Value

BO

PMCO

AO

Fig. 7.5 indicates that all the three organizations strategically plan for project

communications in terms of report formats (MI2-1), periodicity of reports (MI2-2) and

periodicity of meetings (MI2-3) to be conducted during the project. But, only PMCO

implements required and uniform ICT adoption by project agencies through project

scope (MI2-4).

MI3 - Measuring benefits of use of ICT

Fig. 7.6 indicates that all the three organizations measure benefits of use of ICT (MI3-1).

But, it is subjective or qualitative measurement (MI3-7) and not quantitative

measurement (MI3-6). All the three organizations assess benefits with respect to project

success (MI3-2), only PMCO assesses benefits with respect to effective team

management (MI3-3), AO assesses benefits of effective use of technology (MI3-4) and

all the three organizations assess benefits with respect to increased organizational

With respect to the MI ‘Strategic project communication’ PMCO reflects best

practice for the industry.

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efficiency (MI3-5). Thus, project success and increased organizational efficiency are

considered as important areas by all the three organizations.


of MI3

0 1

MI3-7

MI3-5

MI3-3

MI3-1

Values

Best Practice Value

BO

PMCO

AO

MI4 - ICT infrastructure

Fig. 7.7 indicates that in all the three organizations more than 90% office staff has access

to computers (MI4-1), but only in AO more than 90% site staff has access to computers

(MI4-2). In BO and PMCO 45%-90% of site staff has access to computers. The

difference could be because of the fact that AO has only one engineer at each site, but

BO and PMCO have more staff including site supervisors. As indicated earlier also in

MI1, none of the organizations utilizes project web sites for project management (MI4-

3). AO does not have a centralized database (MI4-4) and only BO has intranet facility in

the organization (MI4-5). All the organizations have Internet connection at project sites

(MI4-6), LAN connection in office (MI4-7), use of MS Office for general administration

works at office and at sites (MI4-8, MI4-10) and adobe acrobat reader installed in office

computers (MI4-9). Only BO has adobe acrobat reader installed in computers at project

sites. In all the three organizations, majority of e-information communication between

head office and project sites is via physical transfer of data storage media like CDs etc.

and internet/intranet (MI4-12), but for communication between head office and other

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agencies in BO it is primarily through internet (MI4-13). BO and PMCO keep backup of

electronic data in storage disks as well as external/internal hard disk (MI4-14), but AO

keeps it only in storage disks. In all the three organizations, portable communication

technology being utilized is only mobile phone (MI4-15).


of MI4

0 1 2 3

MI4-15

MI4-14

MI4-13

MI4-12

MI4-11

MI4-10

MI4-9

MI4-8

MI4-7

MI4-6

MI4-5

MI4-4

MI4-3

MI4-2

MI4-1

Values

Best Practice Value

BO

PMCO

AO

Issues of project web sites and intranet facility have been included in MI1 as well as

MI4 because both the indicators need reference to these issues for complete definition.

Thus, such a framework would allow the participants to evaluate their organizations for

individual indicators also.

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MI5 - ICT for general administration

Fig. 7.8 indicates that in all the three organizations majority of the information flows

within the office (MI5-1) and between office and project sites (MI5-2) for general

administration is through e-mail and hard copies. With respect to communication

between the head office and clients (MI5-3), BO primarily communicates through hard

copies, PMCO primarily communicates through e-mails and AO primarily uses a

combination of the two methods. With respect to communication between head office

and consultants (MI5-4), PMCO again primarily communicates through e-mails, and BO

and AO primarily use a combination of the two methods.


of MI5

0 1 2 3

MI5-12

MI5-11

MI5-10

MI5-9

MI5-8

MI5-7

MI5-6

MI5-5

MI5-4

MI5-3

MI5-2

MI5-1

Values

Best Practice Value

BO

PMCO

AO

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In all the three organizations communication between head office and

contractors/material suppliers and other external agencies (MI5-5) flows as a

combination of e-mails and hard copies. In BO and AO, information from the project

sites to other agencies (MI5-6) primarily flows through hard copies, but in PMCO it is

through a combination of the above discussed methods. In B, meetings between head

office and site staff (MI5-7), between head office and clients (MI5-10) and joint

meetings between all the agencies (MI5-11) are primarily conducted as teleconferences.

But in PMCO and AO these are primarily conducted as personal meetings. In all the

three organizations meetings between head office and clients (MI5-8) and consultants

(MI5-9) are primarily conducted as personal meetings. AO accesses majority of external

information (MI5-12) as hard copies, though other two organizations access it through e-

sources.

MI6 - ICT for time management

Fig. 7.9 indicates that in BO, time schedules of all the project stages and between all the

agencies are primarily communicated as e-mails and hard copies. In PMCO trend is the

same only for communicating time schedules between head office and clients or

consultants (MI6-1,3,6). With respect to the communication between head office and

project sites (MI6-2,5,8) or contractors/material suppliers (MI6-4,7,10) it is primarily

through e-mails. In AO also trend is the same as in BO except for some time schedule

reports that are communicated primarily as hard copies. Variance analysis reports (MI6-

11,12,13) are primarily communicated as hard copies and e-mails.

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of MI6

0 1 2 3

MI6-13

MI6-12

MI6-11

MI6-10

MI6-9

MI6-8

MI6-7

MI6-6

MI6-5

MI6-4

MI6-3

MI6-2

MI6-1

Values

Best Practice Value

BO

PMCO

AO

MI7 - ICT for cost management

Fig. 7.10 indicates that in BO, cost management reports at all the project stages and

between all the agencies are primarily communicated as e-mails and hard copies. In

PMCO also trend is primarily the same except for the detailed cash flow report to

contractors/material suppliers (MI7-4) and cost variance reports (MI7-6) to clients or

consultants. In AO more communication flows through hard copies only.

The gaps in this indicator are not significant, thus further investigation is not considered.

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of MI7

0 1 2 3

MI7-6

MI7-5

MI7-4

MI7-3

MI7-2

MI7-1

Values

Best Practice Value

BO

PMCO

AO

MI8 - ICT for project administration and resource management

Fig. 7.11 indicates that in all the organizations majority of the bids for the project work

(MI8-1) are received as hard copies, tender meetings and negotiations are primarily

conducted as personal meetings (MI8-2), and interviews for hiring project staff (MI8-3)

and majority of design review meetings (MI8-4) are conducted as personal meetings. In

PMCO and AO design changes are primarily communicated (MI8-5) as e-mails, but in

BO these are communicated both as e-mails and hard copies. In PMCO, information

regarding materials (MI8-6) is primarily accessed through e-sources, but in BO and AO

as hard copies. In all the organizations, meetings with the material suppliers (MI8-7) are

primarily conducted as personal meetings and materials management records at sites

(MI8-8) are primarily prepared in MS Excel or customized software. For manpower

resource management records (MI8-9), trend is the same for BO and PMCO, but in AO

these are primarily prepared in MS Word even though MS Excel has more features for

analysis of data. In all the three organizations, project documents are primarily stored as

hard copies and electronic copies at offices (MI8-10). At project sites (MI8-11), trend

remains the same for BO and PMCO, but in AO these are primarily stored as hard

copies.

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of MI8

0 1 2 3

MI8-11

MI8-10

MI8-9

MI8-8

MI8-7

MI8-6

MI8-5

MI8-4

MI8-3

MI8-2

MI8-1

Values

Best Practice Value

BO

PMCO

AO

Overall Comparison

Comparison of the three organizations with respect to total MI values (Fig. 7.12) shows

that for strategic planning indicators (MI1, MI2, MI3), PMCO has the highest value and

AO has the lowest. PMCO reflects best practice for ‘Strategic project communication’

(MI2). BO is a relatively larger organization as compared to other two organizations but

benefit assessment values of BO (MI3) are less as compared to the other two

organizations and AO lags in ‘Strategic planning for use of ICT’ (MI1).

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Rating values of three organizations for Strategic indicators (MI1+ MI2+ MI3) could

range from (3-24). Their calculated values are as given below (Ref. Appendix D):

BO: 19, PMCO: 21, AO: 16.

The strategic indicators are leading indicators for PMCO and BO. But, they are lagging

indicators for AO.

Fig. 7.12: Comparison of Measurement Indicator Values

for Three Organizations

0 10 20 30 40

MI1

MI2

MI3

MI4

MI5

MI6

MI7

MI8

MI Values

Best Practice Value

BO

PMCO

AO

In indicators measuring use of ICT for general administration works (MI4, MI5), AO is

lagging in both, BO has better IT infrastructure as compared to other two organizations,

but PMCO’s use of ICT for general administration works is highest. In indicators

measuring use of ICT for project management processes, PMCO has the highest values

and BO has values a little higher than those of AO.

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Rating values of three organizations for two groups of indicators are as given below

(Ref. Appendix D):

(MI4+MI5) (MI6+MI7+MI8)

Range: 18-62 Range: 30-69

BO: 42 BO: 56

PMCO:40 PMCO:64

AO: 35 AO: 52

The analysis shows that organizations’ strategic planning for use of ICT is high, but gap

between their use of ICT and the best practice is more. With respect to the best practice,

indicators MI4 to MI5 are lagging indicators for all the three organizations and MI6-

MI8 are leading indicators for PMCO.

Above analysis identified trends, which indicate the reasons for less values of use of

ICT. Identified trends and gaps in practice of the individual organizations are listed in

Table 7.1. 17 gaps and 10 trends are identified. Gaps G10 and G12 of BO and AO are

also listed as trends because values of PMCO are also not very high for these measures.

These trends were also identified in questionnaire data analysis in Chapter 5. Table 7.2

categorizes the identified trends as already identified issues, hypotheses or new

identified issues.

Table 7.1: Identified Gaps in Practice and Trends Performance

Measure

Gap in

Practice

Industry

Trend

Issue Organization(s)

MI1-1 G1 Organization does not have a strategy for

use of ICT within the organization

AO

MI1-4 G2 Organization has no plans for utilizing

project web sites for project management

AO

MI1-5 T1 Videoconferencing is not planned to be

adopted in next 0-5 years.

BO/PMCO/AO

MI1-6 G3 Training of employees not conducted AO

MI2-4 G4 Project scope does not require use of ICT

by project team agencies

BO/AO

MI3-3 G5 Benefits with respect to effective team

management not assessed

BO/AO

MI3-4 G6 Benefits with respect to effective use of

technology not assessed

BO/PMCO

MI3-6 T2 Quantitative measurement of benefits not

conducted

BO/PMCO/AO

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Table 7.1 Continued

MI4-2 G7 Only 45%-90% site staff has access to

computers

BO/PMCO

MI4-4 G8 Centralized database is not maintained in

the organization

AO

MI4-5 G9 Intranet facility is not installed in the

organization

PMCO/AO

MI4-12 T3 Majority of e-information communicated

between head office and project sites is

not only through internet

BO/PMCO/AO

MI4-13 G10 Majority of e-information communicated

between head office and other agencies is

not only through internet

PMCO/AO

MI4-15 T4 Mobile phone is the only portable

communication technology being utilized

BO/PMCO/AO

MI5-1,2,3,4,5 G11 T5 Majority of general administration

information from head office primarily

gets communicated as hard copies and e-

mails

BO/AO

MI5-6 G12 Majority of information from site offices

primarily gets communicated as hard

copies

BO/AO

MI5-

7,8,9,10,11

T6 Majority of the meetings for general

administration are conducted as personal

meetings

BO/PMCO/AO

MI6, MI7 G13 T7 Majority of project time and cost

management processes information from

head office primarily gets communicated

as hard copies and e-mails

BO/AO

MI6 G14 Time schedules to clients and consultants

are communicated primarily as hard

copies and e-mails, but to project sites

and contractors/material suppliers, time

schedules are primarily communicated as

e-mails

PMCO

MI8-1 T8 Project bids are received as hard copies BO/PMCO/AO

MI8-2,3,4,7 T9 Project administration meetings are

primarily conducted as personal meetings

BO/PMCO/AO

MI8-6 G15 Information regarding materials is

primarily referred through hard copies

BO/AO

MI8-9 G16 Manpower resource management records

at sites are primarily prepared in MS

Word and not in MS Excel

AO

MI8-10 T10 Project records at offices are primarily

stored as hard copies as well as electronic

copies

BO/PMCO/AO

MI8-11 G17 Project documents at sites are primarily

stored as hard copies

AO

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Table 7.2: Categorization of Identified Trends Trend Hypothesis Identified Issue

(Chapter 5)

New Issue Identified

T1 9

T2 √

T3 9

T4 9

T5 C3

T6 HD6 C4

T7 C3

T8 13

T9 HD6 C4

T10 C2

The reasons for these gaps in practice and trends require qualitative study that

constitutes ‘Bench learning’ conducted through case study analysis.

7.4.3 Benchmarking Framework Validation and Finalization

While conducting the semi-structured interviews, the benchmarking framework was

discussed with senior executives of the organizations for its validity and for any

modifications required. No modification was suggested and all the interviewees

considered the suggested benchmarking framework as a pragmatic approach and as

providing basis for measuring extent of ICT adoption for building project management

by an individual organization and comparing organizations within the industry.

But, considering the nature of the construction industry and the targeted organizations

being SMEs with limited resources, interviewees suggested having a workable

benchmarking framework administration plan resulting in successful implementation of

the framework in the industry.

Also, in the data analysis, except for one new trend, all other identified trends match

with the issues identified during questionnaire data analysis.

Thus, the suggested benchmarking framework was validated and finalized.

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7.4.4 BenchMeasurement

Benchmarking shows that inspite of strategically planning for ICT adoption, the

organizations are lagging in use of ICT for building project management processes as

compared to the best practice in the industry. Thus, the objective of BenchMeasurement

is to:

Measure performance of three benchmarked organizations for efficiently implementing

their strategies for use of ICT for building project management.

BenchMeasurement is conducted through ‘Data Envelopment Analysis’ (DEA)

technique. DEA technique is introduced and discussed in Chapter 3 (Sec. 3.5.3.3). DEA

analysis has been conducted using ‘Frontier Analyst’ software developed by University

of Warwick and Banxia Software Ltd. UK.

The decision making units (DMUs) were the three benchmarked organizations. The

analysis model had three variables i.e two inputs and one output. Their values and

weights are derived from the benchmarking framework (Table 7.3).

The analysis was conducted in the ‘Output Maximization’ mode with the assumption

that the requirement is to have maximum use of ICT for building project management

processes with respect to the strategies formulated in the organizations.

Table 7.3: Inputs and Outputs for DEA Analysis Indicators Measurement

Indicators

Weights

Inputs

Strategic Indicators MI1+MI2+MI3 3

Use of ICT for General

Administration Works Indicators

MI4+MI5 2

Outputs

Use of ICT for Building Project

Management Processes

Indicators

MI6+MI7+MI8 1

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The analysis was conducted in the ‘Variable Returns Scale’ mode with the assumption

that changing all the inputs i.e. strategies formulated for use of ICT and use of ICT for

general administration works’ by the same proportion changes the output i.e. ‘use of ICT

for building project management processes’ by a greater extent than the proportional

value. This assumption is derived from the results of SEM analysis discussed in Chapter

6 (Sec. 6.7)

Final weighted values of the inputs and outputs for each organization are as shown in

Table 7.4.

Table 7.4: Data Values for Three Analyzed Organizations Organization Strategic Indicators

(Input)

Use of ICT for

General Admin.

Works Indicators

(Input)

Use of ICT for

Building PM

Processes Indicators

(Output)

Value Weighted

Value

Value Weighted

Value

Value Weighted

Value

Builders (BO) 19 57 42 84 56 56

Project Management

Consultancy

Organization (PMCO)

21 63 40 80 64 64

Architectural

Organization (AO)

16 48 35 70 52 52

Analysis results show that based on the data available, PMCO and AO are the best

performing DMUs or the organizations with 100% efficiency scores and BO has 89.65%

efficiency score (Table 7.5). Information is also shown graphically in Appendix E. It

signifies that PMCO and AO are able to efficiently implement their strategies for use of

ICT, but BO is lagging in it.

Table 7.5: Efficiency Scores for Analyzed Organizations Organization Efficiency Score

Builders (BO) 89.65%

Project Management Consultancy Organization

(PMCO)

100%

Architectural Organization (AO) 100%

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With respect to the data values, ‘Reference comparison’ values are calculated. These

values show performance of the DMU being studied in comparison to 100% efficient

DMUs or ‘reference units’. The values of the DMU under study are scaled to 100% in

the graph, with comparison values also scaled accordingly to make the relationship more

obvious. Fig. 7.13 and Fig. 7.14 show comparison of data values of PMCO and AO with

respect to the data values of BO, where data values of BO are scaled to 100%. It shows

that the values of two indicators of PMCO are higher than those of BO. Values of input

indicators of AO are very less in comparison with those of BO, but the value of output

indicator is only 92% of that of BO.

Fig. 7.13: Reference Comparison Values of PMCO with respect

to BO

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For BO to be 100% efficient, with the same level of ‘strategic planning’, ‘use of ICT for

general administration works’ can reduce by 11.6 points (approx. 14%) and ‘use of ICT

for building PM processes’ should increase by 11.55 points (approx. 21%) (Table 7.6).

Graphical representation of the data is shown in Appendix E.

Table 7.6: Potential Improvement Required in BO Input/Output Actual Target Potential

Improvement

Strategic Indicators 57 57 0

Use of ICT for General

Administration Works

Indicators

84 74.26 -11.6

Use of ICT for Building

Project Management

Processes Indicators

56 62.47 11.55

‘Reference contribution’ displays the extent to which each reference unit or the efficient

unit has contributed in determining the efficiency of an inefficient unit. It is displayed as

a percentage. It provides information about the members of a unit’s reference set that

Fig. 7.14: Reference Comparison Values of AO with respect to BO

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have had the most influence in setting its targets for potential improvements. So, the

organization under study identifies the key units to compare its performance against.

Fig. 7.15 shows that the performance of BO has been primarily compared with PMCO

and minimally with AO i.e. performance targets of BO for two inputs and one output are

primarily defined by the efficiency values of PMCO. It is so because PMCO has high

rating values for inputs as well as outputs.

7.4.5 Benchmarking and BenchMeasurement Discussion

Above analysis shows that PMCO has the highest benchmarking ranking amongst the

three organizations and is also efficient in implementing its strategies. BO has the

middle ranking but is not efficient in implementing its strategies. AO is lowest in the

ranking but it is efficient in implementing its strategies, because its strategic use of ICT

is also less. Relation between rating and efficiency of analyzed organizations is shown in

Fig. 7.15: Reference Contribution Values of PMCO and AO for

Determining Potential Improvement Values of B

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Fig. 7.16. Best Practice Organization in the industry would have ‘High’ Benchmarking

rating and 100% BenchMeasurement efficiency.

The reasons for these results require qualitative study incorporating study of gaps in

practices and trends identified at Benchmarking stage. This study is a component of

‘Bench learning’ conducted through ‘Case Study Analysis’.

7.5 BenchLearning - Case Study Analysis

Case study analysis forms the qualitative analysis part of the research and was conducted

with the following objectives:

• To identify and validate the identified cultural, social, human and other

qualitative factors that are required to be considered for increasing effective ICT

adoption for Building Project Management by Small and Medium Enterprises

(SMEs).

• To assess the reasons for gaps in practice for ICT adoption for building project

management in the benchmarked organizations. Thus, complimenting

performance measurement or benchmarking with performance management or

bench-learning component.

Fig. 7.17 shows the relation between the three data analysis components of research.

High Best Practice

Organization

Medium BO PMCO, AO

Low

Ben

chm

ark

ing

Ra

tin

g

<100% 100%

BenchMeasurement Efficiency

Fig. 7.16: Relation between Rating and Efficiency of

Analyzed Organizations

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Case study organizations are the three benchmarked organizations.

The mode of conducting case studies was having discussions with a senior executive and

a project manager of each organization. Exploratory discussions are conducted in

qualitative research not only to reveal and understand the ‘what’ and ‘how’ but also to

place more emphasis on exploring the ‘why’ (Saunders et al. 2000, p.242-270). The

discussions were an extension of the semi-structured interviews conducted for suggested

benchmarking framework administration and finalization. Thus, the executives were

already aware of the objectives of the study.

Case studies have been conducted by studying the data collected from primary and

secondary sources. The primary data was collected from ‘Questionnaire survey data

analysis’ and ‘Benchmarking and BechMeasurement’ analysis. The secondary data was

collected through discussions conducted within the organizations.

Fig. 7.17: Relation between all Data Analysis Components

149 Organizations

Questionnaire Survey

Quantitative Data Analysis To identify and validate

identified cultural, social,

human and other

qualitative factors that

require consideration for

increasing effective use of

ICT for Building Project

Management by SMEs

3 Organizations

Case Study Analysis

Discussions - Qualitative

Analysis

(SAP-LAP Analysis)

Benchmarking Framework

Administration and

Finalization

Semi-structured Interviews -

Quantitative/Qualitative

Analysis

To assess the reasons for

gaps in practice for use of

ICT for building project

management identified for

benchmarked organizations

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Case study analysis utilizes SAP (situation-actor-processes) – LAP (learning-action-

performance) framework for research enquiry. Sushil (2000) has recommended SAP-

LAP as a systematic and formal analysis methodology for critically examining a case

study.

SAP-LAP analysis technique is introduced and discussed in Chapter 3 (Sec. 3.5.4.1).

The context for each case study organization includes: introduction of the organization;

discussion on the situation, actors and processes for ICT adoption in the organization

with respect to strategic issues for ICT adoption in the organization; extent of ICT

adoption within the organization; and factors perceived as affecting ICT adoption for

Building Project Management. Through SAP-LAP analysis, implicit issues of strategic

ICT adoption for building project management are identified. While learning issues

derived out of a particular case are applicable to similar other cases, this application

should be preceded by proper consideration (Duggal et al. 2001).

Basic introduction of the case study organizations with respect to their location, year of

establishment, expertise, organization structure, certifications, turnover and value of

executed projects is already discussed in Sec. 7.4.1 above. Description of each

organization with respect to use of ICT, Situation, Actors, Processes, Learning, Action

required and expected change in performance is discussed below for each organization.

Categories of Actors and Processes are the same for all the three organizations and are

discussed first. Tables 7.7, 7.8 and 7.9 identify the reasons for gaps in practice identified

for each case study organizations. These reasons include the social, cultural and Table

7.10 identifies the actions required to increase ICT adoption for building project

management in all the studied organizations and expected performance changes.

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7.5.1 Actors

The actors with respect to ICT adoption for building project management can be

categorized as internal and external actors as shown below. All these actors have

freedom of choice to some extent to use ICT for project management.

Internal actors: Senior managers of the organization

Office technical staff

Project site staff

External actors: Clients

Associating project team organizations

7.5.2 Processes

The processes using ICT for building project management are as listed below:

• General administration processes

• Time management processes

• Cost management processes

• Project administration and Resource management processes

7.5.3 Case Study 1: Builders (BO)

7.5.3.1 Introduction

The organization is itself the client for its projects and the buyers and financiers of their

projects are the indirect clients. Thus, their business objective is to provide high quality

service to their indirect clients in terms of the projects completed in time, within the

estimated budget and as per the specifications and also to integrate building project

management information with property management information.

IT was introduced in the office working by late 1980s and by 1994 it was also

introduced at the project sites. Initially it was a problem to have reliable IT infrastructure

at remote sites, but now it is not considered an issue. At present all work is IT enabled

and the prevalent international software are utilized for individual functions. The

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organization has its web site, but till now it is only designed for posting information

about the organization. It is planned to make it a functional web site for communicating

with external agencies. As per the strategy of the senior management, ERP

implementation within the organization was initiated in the year 2000 and the work was

awarded to an IT consultancy firm. Implementation was not successful and it was

analyzed that any such initiative requires in-house monitoring. Consequently in 2003, an

IT department was initiated within the organization. This department plans and

implements use of IT within the organization as per the strategies formulated by the

senior management. In the process of ERP implementation, IT infrastructure within the

organization was enhanced and it is a view within the organization that even though

ERP implementation was not successful, staff got the chance to work more on the

computers, thus increasing their IT capability. Annual Maintenance Contract (AMC) for

maintaining IT infrastructure is outsourced to external agencies.

Periodically in-house training of the old staff is conducted for upgradation of their IT

skills or they are provided assistance for getting training from outside. The new

technical staff that is hired has training of IT tools and technologies. There is a practice

of hiring staff directly at senior levels also and some of these managers are not IT

trained and also find it difficult to adopt use of IT. Turnover of the staff is an issue, but it

has been resolved to some extent as the organization has entered into an agreement with

their competitors in the city for not hiring staff from each other’s organization.

As per the benchmarking framework discussed above, the organization has a middle

level rating for ICT adoption for building project management. But, it is at the higher

end of middle level rating. It’s efficiency score for implementing its strategies for use of

ICT is 89.6%.

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7.5.3.2 ICT Adoption for Building Project Management – Strategic Issues

The senior management has formulated a strategy for use of IT within the organization

and it is focused on financial management, materials management and project

implementation. It is aligned with their business objectives and market requirements. It

is regularly updated. The organization functions on maintaining working relationship

with their associating agencies. Most of the contractors and other associating agencies

have been working with them for a long time and a working methodology has developed

between these agencies and the organization under study. Thus, even though use of ICT

for their projects is not defined through relevant contract clauses, the contractors and

other external agencies primarily use ICT on the projects as per the strategy of the

organization.

The senior management in the organization subjectively evaluates benefits of use of ICT

for increased organizational efficiency and for specific projects with respect to the

measures of project success.

For majority of the projects, communication management planning with respect to the

report formats, periodicity of reports and meetings is done at the start of the project. At

office and at project sites, majority of the documents are stored as hard copies and

electronic copies. The organization has a disaster recovery plan for the breakdown of IT

infrastructure in the form of electronic backup of data and IT consultants who have

AMC for their IT infrastructure.

7.5.3.3 Extent of CT Adoption for Building Project Management

Majority of the office and project site staff have access to computers. Data is stored in a

centralized database. All the project sites have Internet connection and all the staff

including that of the contractors and other agencies interacts through mobile phones.

But, mobile Internet is not being used. Electronic information from head office to sites

and to the other agencies is communicated through e-mail or sometimes physically

through data storage media like floppies/CDs/USB drives. Also, some e-mails are

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followed by hard copies sent for record purpose. From the project sites, majority of the

e-mails are followed by hard copies. All the meetings conducted during the course of the

design and execution stage of the projects are conducted as personal meetings. External

information is primarily referred from e-sources. The organization has Intranet installed,

but advanced ICT tools like project web sites are not being utilized for building project

management and videoconferencing is also not used as a tool for conducting meetings.

These tools would be adopted as per the requirement of market forces, which they

foresee as a timeframe of (0-5) years for project web sites and (5-10) years for

videoconferencing.

Time and cost management documents are primarily communicated as e-mails and hard

copies. E-tendering has not been adopted as bids are received as hard copies and

negotiations are also done through personal meetings. On their projects, design changes

are primarily communicated as e-mails and hard copies. Material management as well as

manpower resource management records are maintained in Excel documents. Legality of

e-documents is an issue. But, there is a change in the scenario as responses to RFIs are

accepted as e-mails, even though major works at sites are executed only when hard copy

information and approval is delivered at site.

7.5.3.4 Perceptions of the Senior Managers and Project Managers

The senior managers have a pro-active approach towards use of ICT in the organization

and consider ICT as an integral part of the strategy for providing high quality services to

their clients, which is their business objective.

50%-60% of the senior management staff are ICT savvy and are able to handle their ICT

requirements. This is in fact an enabler, as these managers are able to communicate

directly within the organization from any location. Others require secretarial help for

day-to-day functions. But, majority of the senior staff is not aware of the features of

advanced ICT tools like web based project management or videoconferencing. Thus,

these tools are not a part of their strategy.

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Project managers are provided training for updated IT tools and are aware of the

advantages of using ICT for project management. They support the strategies of the

senior management, but are not a part of the team formulating the strategy.

7.5.3.5 Factors Perceived as affecting ICT Adoption for Building Project

Management

The senior manager and the project manager considered following factors defining ICT

adoption for building project management:

• At the organizational level as well as at the project level, perspective of the

senior managers towards effectiveness of use of ICT is important, as they are

required to drive use of ICT in the organization and in the projects.

• Successful implementation of IT initiatives requires in-house monitoring and

expertise.

• At the project level, a close working relationship between associating team

agencies for successive projects is considered as an important factor.

• Cost of ICT infrastructure, cost of hiring IT trained staff and cost of providing

training are not considered as affecting factors, because these are considered as

integral part of the cost to be borne by the organization for providing high

quality services and an important component of their business objectives.

• Day-to-day IT help/support both at the office and at sites is perceived as

important.

7.5.3.6 Situation

The situation in the organization with respect to ICT adoption for building project

management can be summarized as:

• Extent of ICT adoption on the projects is primarily defined by the organization’s

strategy for use of ICT. But, its efficiency score for implementing its strategies is

89.6%.

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• Perceptions of the senior managers of the organization are considered as important

factors affecting use of ICT in the organization and on the projects.

• Benefits of use of ICT are subjectively evaluated for increased organizational

efficiency and measures of project success.

• All work in the organization is IT enabled and prevalent international software are

utilized for individual functions.

• Organization has a centralized database.

• As a part of the disaster recovery plan and day-to-day IT help/support, IT

infrastructure at office and project sites is maintained through AMC awarded to an

external IT consultant. Software are regularly upgraded.

• The organization is utilizing ICT for building project management. But, the rating as

per the developed benchmarking tool is at the higher end of middle level rating.

• Adequate IT infrastructure is maintained at office and project sites.

• The organization has Intranet installed.

• IT trained staff is hired or training is provided to the old staff for upgradation of their

skills. In-house training is conducted or staff is provided assistance for training from

outside.

• Project communication management planning with respect to the reports and

meetings is done at the start of the project.

• E-mail is used extensively for project management. But, advanced ICT tools like

project web sites, videoconferencing and mobile Internet are not used.

• Meetings are primarily conducted as personal meetings.

• E-tendering has not been adopted.

• External information is primarily referred through electronic sources, but

information regarding materials is referred primarily through hard copies.

• E-mails of project management documents from office as well as from project sites

are primarily followed by hard copies for record purposes.

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7.5.3.7 Learning

The organization has a strategy for use of ICT in the organization and for the projects,

which defines the methodologies for its implementation. The strategy is defined and

driven by the market forces and requirements. But the strategy is not an initiative to be

the market leaders in use of ICT as advanced ICT tools are not used and as per the

benchmarking framework discussed above, the organization is at the higher end of

middle level rating for use of ICT for building project management. Also, strategies are

not being efficiently implemented in the organization. Senior managers of the

organization view ICT as an important tool for providing high quality services.

The study shows that following supply chain and HR issues define increased use of ICT

in the organization:

• At the organization level, reduced turnover of staff achieved by having an

agreement with the competitors in the city for not hiring staff from each other’s

organization

• At the project level, a close working relationship and a working methodology

developed between associating team agencies. It is achieved due to a long term

working relationship with the agencies.

• Staff is provided training for use of advanced IT tools and technologies.

The benchmarking framework administration identified gaps in practice for the

organization. Table 7.7 identifies the reasons for the gaps in practice.

Internal actors are proactive and ICT trained. External actors define use of ICT in the

organization through the market requirement or the ‘situation’. Data generated and

analyzed for the processes can be communicated through use of ICT. Thus ‘Situation’

is the dominant component in BO.

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Table 7.7: Gaps in Practice and the Identified Reasons (B) Gap in Practice Issue Reason

G4 Project scope does not require use of ICT by

project team agencies

Not perceived as important due

to working methodology

developed between associating

project team agencies.

G5 Benefits with respect to effective team


G6 Benefits with respect to effective use of


It is perceived that these benefits

are being achieved. Thus formal

assessment not conducted.

G7 Only 45%-90% site staff has access to

computers

Majority of the site supervisors

do not have IT training as their

technical expertise is considered

important.

G11 Majority of general administration information

from head office primarily gets communicated


This is also a trend in the

industry.

G12 Majority of information from site offices

primarily gets communicated as hard copies • All site staff do not have ICT

training.

• Some of the external agencies

like sub-contractors do not

communicate through e-mails.

G13 Majority of project time and cost management

processes information from head office

primarily gets communicated as hard copies and

e-mails


industry.

G15 Information regarding materials is primarily

referred through hard copies

A system developed due to staff

structure in the organization, as

all the senior managers are not

ICT savvy.

7.5.4 Case Study 2: Project Management Consultancy Organization (PMCO)


Since the inception of the organization, IT was introduced in the organization working.

At present all the work is IT enabled and the prevalent international software are utilized

for individual functions. The organization has its web site, but till now it is used only for

posting information about the organization. They plan to make it a functional web site

for communicating with external agencies. An IT consultancy firm is awarded the

Annual Maintenance Contract (AMC) for maintaining IT infrastructure and software

being used are regularly updated.

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Periodically, training of the old staff is conducted for upgradation of their IT skills. The

new technical staff that is hired has training of IT tools and technologies. The staff hired

directly at senior levels is also required to adopt ICT as defined in the organization. Due

to its pro-active HR policies, organization has been able to retain their staff and consider

them as their strength. Thus, staff turnover is not an issue in the organization.


level rating for use of ICT for building project management, but it is at the higher end of

middle level rating. It has also been assessed as efficient in implementing its strategies

for use of ICT.


The organization has a strategy for use of ICT within the organization and for building

project management. It is aligned with their business objectives and is regularly updated.

Thus, extent of use of ICT on their projects is aligned with their ICT strategy after

consultation with their clients. Contractors’ and other agencies’ use of ICT is also

defined accordingly with the help of relevant contract clauses.

The senior management in the organization subjectively evaluates benefits of use of ICT

for increased organizational efficiency and for specific projects with respect to the

measures of project success and effective team management, since team working is an

important issue in the projects of the scale being managed by them. The organization has

drafted detailed manuals for executing project management processes with respect to the

nine knowledge areas as defined in PMI’s PMBOK and communication management is

one of the knowledge areas. The manual related to communication management defines

methodologies of using ICT for different categories of building projects. These manuals

are periodically upgraded.

For majority of the projects, communication management planning with respect to the

report formats, periodicity of reports and meetings is done at the start of the project. At

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the office and at project sites, majority of the documents are stored as hard copies and

electronic copies. The organization has a disaster recovery plan for breakdown of IT

infrastructure in the form of electronic backup of data and IT consultants who have

AMC for their IT infrastructure.

7.5.4.3 Extent of ICT Adoption for Building Project Management

All the office staff and majority of the project site staff have access to computers. Data is

stored in a centralized database. All the project sites have Internet connection and all the

staff including that of the contractors and other agencies interact through mobile phones.

But, mobile Internet is not being used. Electronic information from head office to the

sites and to other agencies is communicated through e-mail or sometimes physically

through data storage media like floppies/CDs/USB drives. Also, some e-mails are

followed by hard copies sent for record purpose. From the project sites, majority of the

e-mails are followed by hard copies. All the meetings conducted during the course of the

design and execution stage of projects are conducted as personal meetings. External

information is primarily referred from e-sources. The organization has LAN at office but

does not have an Intranet, and plans to install it within a year. Advanced ICT tools like

project web sites are not being utilized for building project management and

videoconferencing is also not used as a tool for conducting meetings. They plan to

initiate project management through project web sites within a year, but they do not have

an immediate plan for adopting videoconferencing unless required by the clients and the

market forces.

The time and cost management documents are primarily communicated as e-mails and

sometimes these are followed by hard copies also. E-tendering has not been adopted as

bids are received as hard copies and negotiations are also done through personal

meetings. Design changes are primarily communicated as e-mails. Earlier drawings were

e-mailed in ‘dwg’ format, but in view of data security, now these are mailed in ‘pdf’

format. Material management as well as manpower resource management records are

maintained in MS Excel documents. Legality of e-documents is an issue. But, there is a

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change in scenario and responses to RFIs are accepted as e-mails as well as message

through mobile phones, but signed hard copies for these responses are required for

record purposes.


The senior managers have a pro-active approach towards use of ICT in the organization

and consider ICT as an integral part of the strategy for providing high quality services to

their clients and a part of their business objectives.

Majority of the senior staff is ICT savvy and are able to handle their ICT requirements.

They are also aware of the features of advanced ICT tools like web based project

management or videoconferencing. But, at present they are not convinced about their

requirement and benefits if used in the Indian construction industry.

Project managers are provided training for updated IT tools and are aware of the

advantages of using ICT for project management. They support the strategies of the

senior management and also contribute in the formulation of strategy for use of ICT

because of their knowledge of logistics of implementing the strategy.


Management

The senior manager and the project manager considered following factors defining ICT

adoption for building project management:

• At the organizational level, perspective of the senior managers towards

effectiveness of use of ICT is important, as they are required to drive use of ICT

in the organization.

• At the project level also there is a requirement to have a champion for use of

ICT. With respect to this organization, it acts as the champion and defines use of

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ICT on its projects. Thus, it does not consider client’s or principal contractors’

perception as important factors.

• The cost of ICT infrastructure, cost of hiring IT trained staff and cost of

providing training are not considered as affecting factors, because these are

considered as integral part of the cost to be borne by the organization for

providing high quality services and an important component of their business

objectives.

• Size, cost and criticality of the project are considered as important factors. In

large size and high cost projects, normally upto the last level of sub-contractors

in the supply chain are relatively bigger organizations, leading to more effective

use of ICT. In critical and fast track projects, higher use of ICT is an important

component of the strategic planning for that project.

• Day-to-day IT help/support is available both at office and at sites. The

organization has regular IT support at office in the form of AMC and endeavors

to provide similar support at their project sites. But, sometimes it is a problem at

the project sites.

7.5.4.6 Situation

The situation in the organization with respect to use of ICT for building project


• Extent of ICT adoption on the projects is primarily defined by the organization’s

strategy for use of ICT and the organization is assessed to be efficiently

implementing its strategies.

• Benefits of ICT adoption are subjectively evaluated for increased organizational

efficiency, measures of project success and effective team management.

• All work in the organization is IT enabled and prevalent international software are

utilized for individual functions.

• The organization maintains a centralized database.

• The organization has not installed Intranet.

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per the developed benchmarking tool is at the higher end of middle level rating.

• Adequate IT infrastructure is maintained at office and project sites.


infrastructure at office and project sites is maintained through AMC awarded to an

external IT consultant. Software are regularly upgraded.

• IT trained staff is hired or training is provided to old staff for upgradation of their

skills. In-house training is conducted. Proactive HR policies of the organization

including that of training the staff help in retaining their staff.

• Project communication management planning with respect to the reports and

meetings is done at the start of the project.

• E-mail is used extensively for project management. But, advanced IT tools like




• External information is primarily referred through electronic sources.

• E-mails of the project management documents from office as well as from the

project sites are partially followed by hard copies for record purposes.

• Perceptions of the senior managers of the organization are considered as important

factors affecting use of ICT in the organization and on projects. Perceptions of the

clients and principal contractors are not considered as important factors because

extent of use of ICT on the projects is primarily defined by the organization’s

strategy of use of ICT, which is further defined by the perceptions of the senior

managers of the organization.

• Size, cost and criticality of the project are considered as important factors affecting

use of ICT on projects.

7.5.4.7 Learning

The organization has a strategy for use of ICT in the organization and for the projects,

which defines the methodologies for its implementation. But, advanced ICT tools are not

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used and as per the benchmarking framework discussed above, the organization is at the

higher end of middle level rating for ICT adoption for building project management.

Senior managers of the organization view ICT as an important tool for providing high

quality services.

Benchmarking framework administration identified gaps in practice for the organization.

Table 7.8 identifies the reasons for the gaps in practice.

Table 7.8: Gaps in Practice and the Identified Reasons (PMCO) Gap in Practice Issue Reason

G6 Benefits with respect to effective use of




assessment is not conducted.

G7 Only 45%-90% site staff has access to

computers

Majority of the site supervisors

do not have IT training as their


important.

G9 Intranet facility is not installed in the

organization

Till now the organization size

was not considered viable for

installing Intranet. Now

organization is planning to

double the strength of its

technical staff by 2008 and more

geographically separated projects

are being managed. Thus, within

next one year, intranet is planned

to be installed.

G10 Majority of e-information communicated

between head office and other agencies is not

through internet only

Some of the agencies do not have

the IT infrastructure for

downloading large files. Thus,

these files are also communicated

through storage disks.

G14 Time schedules to clients and consultants are

communicated primarily as hard copies and e-

mails, but to project sites and

contractors/material suppliers, time schedules

are primarily communicated as e-mails

Clients and consultants do not

have all the software used for

time scheduling installed in their

computers and their staff is also

not trained to take printouts from

the software files. Thus, they are

sent e-mails as well as hard

copies depending on the software

utilized for time scheduling and

the report to be communicated.

But, project sites and contractors

and other agencies have relevant

software installed as defined by

the project scope.

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The internal actors are proactive and ICT trained. Amongst external actors, project team

agencies’ use of ICT is defined by the contract clauses and clients do not define use of

ICT extensively for the projects as the organization has a well-defined strategy for the

same. Data generated and analyzed for the processes can be communicated through use

of ICT. The strategy for use of ICT by the organization is defined by the market

requirements or the ‘situation’. Thus ‘Situation’ is the dominant component in

PMCO.

7.5.5 Case Study 3 – Architectural Organization (AO)


IT was introduced in the organization working by 1996. At present, all work is IT

enabled and prevalent international software are utilized for individual functions. The

organization does not have its web site, but plans to have a web site within a year. An IT

consultancy firm is awarded the Annual Maintenance Contract (AMC) for maintaining

IT infrastructure and software being used are regularly updated.

The organization plans to expand and hire more staff. But, being a small organization, it

becomes difficult for them to retain the technical staff or hire experienced and trained

technical staff. So, the technical staff primarily gets training while working i.e. on the

job and joins bigger organizations after some time. Thus, indirectly the organization is

training the staff as per the requirement, but high staff turnover affects continuity of use

of ICT. They are able to retain the administrative staff.


level rating for use of ICT for building project management and is able to efficiently

implement its strategies.

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The organization does not have a strategy for use of ICT and extent of use of ICT on a

project is defined by the client’s requirements. It is due to the following two reasons:

• The organization manages most of its building projects as default project

managers and some of its projects are managed by PMCOs. Since they are the

default project managers on their projects, they are not able to define use of ICT

as the scope of work for contractors and other agencies.

• The clients’ requirements and market forces define the extent of use of ICT.

The principals in the organization subjectively evaluate benefits of use of ICT for

increased organizational efficiency and for specific projects with respect to measures of

project success and effective use of technology. At present quantitative evaluation of

these benefits is not done and methodologies are being formulated for conducting

quantitative assessment.

For majority of the projects, communication management planning is done with respect

to report formats, periodicity of reports and meetings at the start of the project. At office,

majority of the documents are stored as hard copies and electronic copies, but at the

project sites, documents are primarily stored as hard copies. Organization has a disaster

recovery plan for breakdown of IT infrastructure in the form of electronic backup of data

and IT consultants who have AMC for their IT infrastructure.

7.5.5.3 Extent of ICT Adoption for Building Project Management

All the office and project site staff have access to computers. Data is not stored in a

centralized database, but is stored in different computers wherever it is generated. All

the project sites have Internet connection and all the staff including those of contractors

and other agencies interact through mobile phones. But, mobile Internet is not being

used. Electronic information from head office to sites and to other agencies is

communicated through e-mail or sometimes physically through data storage media like

floppies/CDs/USB drives. Also, majority of the e-mails are followed by hard copies sent

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for record purpose. From the project sites, information is primarily communicated as

hard copies. It is primarily due to two reasons: IT infrastructure at project sites is

inadequate and not upgraded or maintained regularly; Project site staff are not IT trained

as it is considered that project site staff should primarily have construction technology

expertise. All the meetings conducted during the course of the design and execution

stages of the projects are conducted as personal meetings. External information is

primarily referred through hard copies. Organization has LAN at office but does not

have an Intranet, and plans to install it within a year. Advanced ICT tools like project

web sites are not being utilized for building project management and videoconferencing

is also not used as a tool for conducting meetings. They don’t have a plan for adopting

these tools unless required by the clients and the market forces. Web cameras are used in

some outstation projects for posting site photographs to the clients and to the

organization head office.

The time and cost management documents are primarily communicated as e-mails

followed by hard copies or sometimes as hard copies. E-tendering has not been adopted

as bids are received as hard copies and negotiations are also done through personal

meetings. The design changes are primarily communicated as e-mails. Earlier drawings

were e-mailed in ‘dwg’ format, but in view of data security now these are mailed in

‘pdf’ format. Material management records are maintained in MS Excel documents, but

manpower resource management records are maintained in MS Word documents.

Legality of e-documents is an issue. But, there is a change in the scenario and responses

to RFIs are accepted as e-mails as well as messages through mobile phones.


The senior managers consider ICT as a secondary supporting tool for their work

functions. They are able to handle their day-to-day ICT requirements. They are not

aware of the features of advanced ICT tools like web based project management or

videoconferencing, but use the accompanied tools like web cameras on projects if

required by the client. The middle level staff uses ICT extensively and drives its use in

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the organization, as they are more aware of the working and implementation issues of

the advanced tools.

Site engineers do not have IT training and are also not aware of the benefits of use of

ICT. But, they can communicate through e-mails.


Management

The senior manager and the project manager considered following factors defining use

of ICT for building project management:

• At the organizational level, perspective of the senior managers towards

effectiveness of use of ICT is important, as they are required to drive use of ICT

in the organization.

• At the project level also there is a requirement to have a champion for use of

ICT. With respect to this organization, the champion has to be from the clients’

office, since they are primarily default project managers on their projects. Thus,

clients’ perception or clients’ past experience of use of ICT on the projects is

considered an important factor.

• The principal contractors’ perception or past experience of use of ICT on the

projects is also considered an important factor, unless use of ICT is defined by

the contract clauses.

• The cost of ICT infrastructure is not considered as a major factor, but the cost of

hiring IT trained staff or providing on-job training is considered a major factor

affecting use of ICT on projects.

• Day-to-day IT help/support both at office and at sites is considered an important

factor.

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7.5.5.6 Situation

The situation in the organization with respect to use of ICT for building project


• Organization does not have a best practice strategy and extent of use of ICT on the

projects is primarily defined by the client’s requirements. But, it is efficiently

implementing the strategies formulated.

• Benefits of use of ICT are subjectively evaluated for increased organizational

efficiency, measures of project success and effective use of technology.

• Turnover of the staff is high and the organization finds it difficult to hire IT trained

staff leading to on the job training of the staff.

• Organization does not have a centralized database.

• All work in the organization is IT enabled and the prevalent international software

are utilized for individual functions.


per the developed benchmarking tool is at middle level.

• Adequate IT infrastructure is maintained at office and at project sites.


infrastructure at office is maintained through AMC awarded to an external IT

consultant. But, sometimes it is a problem at project sites. Software are regularly

upgraded.

• Project communication management planning with respect to reports and meetings is

done at the start of the project.

• E-mail is used extensively for project management. But, advanced ICT tools like


• The organization has not installed Intranet.



• External information is primarily referred through hard copies.

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• Majority of the e-mails of project management documents are followed by hard

copies. From the project sites, information is primarily communicated as hard

copies.

• Perceptions of the senior managers of the organization, clients and principal

architects are considered as important factors affecting use of ICT in the

organization and on projects.

• The cost of hiring IT trained staff or providing on-job training is considered an

important factor that affects use of ICT on projects.

7.5.5.7 Learning

The organization needs to have a higher level strategic use of ICT in the organization

and for the projects. The strategy should address the situation, the actors and the

processes. Senior managers of the organization view ICT as one of the secondary

supporting tools. But, in the present scenario, use of ICT is one of the major supporting

tools, which can enhance the services provided by the organizations and improve their

market position. The strategy should be formulated with this perspective.

Benchmarking administration identified gaps in practice for the organization. Table 7.9

identifies the reasons for the gaps in practice and Table 7.10 identifies the actions

required for overcoming these gaps.Turnover of the technical staff is very high in the

organization resulting in loss of trained staff. It does not have a strategy for use of ICT

and extent of use of ICT on the projects is defined by the clients’ requirements. Data

generated and analyzed for the processes can be communicated through use of ICT.

Thus ‘Actors’ are the dominant component in AO.

7.5.6 Action and Performance

Table 7.10 lists actions required to increase ICT adoption for Building Project

Management in the studied organizations and also lists the expected performance

changes.

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Table 7.9: Gaps in Practice and the Identified Reasons (AO) Gap in Practice Issue Reason

G1 Organization does not have a strategy for use of

ICT within the organization

Senior managers consider ICT as

a secondary supporting tool and

are not able to hire IT trained

staff.

G2 Organization has no plans for utilizing project

web sites for project management

The clients define extent of use

of ICT on its projects. Thus,

whenever required web based

project management would be

adopted, but would not be

initiated by the organization.

G3 Training of employees not conducted Due to high turnover of staff,

employees get on-job training.

G4 Project scope does not require use of ICT by

project team agencies

The organization manages

projects as default project

managers.

G5 Benefits with respect to effective team




assessment is not conducted.

G8 Centralized database is not there in the

organization

Due to LAN facility and office

being small, it is not considered

important.

G9 Intranet facility is not installed in the

organization.

The organization size is not

considered viable for installing

Intranet.

G10 Majority of e-information communicated

between head office and other agencies is not

through internet only



downloading large files. Thus,

these files are also communicated

through storage disks.

G11 Majority of general administration information

from head office primarily gets communicated



industry.

G12 Majority of information from site offices

primarily gets communicated as hard copies

Majority of the site engineers do

not have IT training as their


important.

G13 Majority of project time and cost management

processes information from head office

primarily gets communicated as hard copies and

e-mails


industry.

G15 Information regarding materials is primarily

referred through hard copies

This is a practice in the

organization and change has not

been considered as required.

G16 Manpower resource management records at sites

are primarily prepared in MS Word and not MS

Excel

Majority of the site engineers are

not conversant with working on

MS Excel.

G17 Project documents at sites are primarily stored

as hard copies

Site staff is more comfortable

storing and referring information

only in hard copy formats

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Table 7.10: Actions Required to Increase ICT Adoption for Building Project

Management in the Studied Organizations and Expected Performance Changes Action Performance

Actions Required by BO, PMCO and AO

It would increase the knowledge of senior

managers regarding use of ICT in the

construction industry, leading to formulation of

a strategy that can propel the organization to be

a market leader. (B/PMCO)

A1 Senior managers should regularly update

themselves for use of ICT in the Indian and

international construction industry, technology

available and issues associated with its

implementation. IT consultants should also be

hired for consultancy on this issue. It would increase the knowledge of senior

managers regarding use of ICT in the

construction industry, leading to formulation of

strategy looking at the future and effective

implementation. (AO)

A2 Subjective evaluation of benefits of use of ICT

for the projects should be continued and

conducted more in detail. Guidelines for

quantitative assessment should also be

formulated.

This would help the organizations in

periodically updating the strategy and realistic

budgeting for strategy implementation.

A3 Organization should have a functional web site. It would be a starting point for online

interaction with external agencies.

A4 A timeframe should be set for adopting

advanced ICT tools.

It would help in formulating a realistic strategy.

Use of advanced ICT tools would lead to real

time flow of information and effective project

management.

A5 More information should be communicated as

e-mails, which are not followed by hard copies.

It would reduce project cost borne in printing

and postage. It would also avoid confusion

created due to alternate modes of

communication.

A6 There should be a change towards mode of

conducting meetings as teleconferences instead

of personal meetings. Option of

videoconferencing should also be explored, as

the technology is available in the country at not

very high cost.

It would save project time and cost incurred in

conducting personal meetings. This cost could

be very high as more and more project team

organizations are geographically separated,

either nationally or internationally.

A7 E-tendering should be adopted.

It would help in faster processing of bids and

negotiations conducted for award of works.

Soft copy of the contract document would be

available for reference at office and project

sites.

Action Required by BO and PMCO

A8 More site staff should have access to

computers.

This would further increase use of ICT at

project sites and more information from project

sites could be communicated as e-mails.

Action Required by BO and AO

A9 Organization should have an electronic

information library of materials and material

suppliers. Staff at all levels should refer

information from these sources.

It would facilitate standardization in materials

information database and the information

would be available to all.

Action Required by PMCO and AO

A10 Organization should install Intranet. It would help in connecting the office and

project site offices for online communication.

(PMCO)

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Table 7.10 Continued

It would help in connecting the two branch

offices and project site offices for online

communication. (AO)

Actions Required by BO

A11 Subjective evaluation of benefits with respect to

effective use of technology and effective team

management should also be conducted. It

should not remain perception based.

This would help in improved strategy

formulation for use of ICT at organization as

well as at project level.

A12 Extent of use of ICT in the projects should be

formalized by making it a part of the project

scope.

This would help the new associating team

agencies to prepare their organizations for

required use of ICT and the old associating

agencies would not feel obliged to use ICT due

to long term working relationship.

Action Required by PMCO


effective use of technology should also be

conducted. It should not remain perception

based.


formulation for use of ICT at organization as

well as at project level.

Actions Required by AO

A14 Organization should have a strategy for use of

ICT and it should be aligned with business

objectives of the organization and should plan

for the future.

It would provide synergy between the growth

of the organization and increased use of ICT by

the organization. It would also lead to planned

budget allocation for future IT infrastructure

upgradation and cost of hiring IT trained staff.

A15 After formulating a strategy for the

organization, clients should be motivated and

convinced for planned and increased use of ICT

for the projects. It has to be supported by the

results of concerted evaluation of benefits of

use of ICT for the projects.

This would help the organization in including

use of ICT in the project scope and formulating

relevant clauses in the tender

documents/agreements of contractors,

consultants and other external agencies. Thus,

change in perceptions of senior managers

would lead to reduced effect of perceptions of

clients and principal contractors.


effective team management should also be

conducted. It should not remain perception

based.


formulation for use of ICT at project level, as

team management is an important component

of project management.

A17 Organization should have centralized database. It would help in having a systematic archive of

information, as due to high turnover of staff, the

knowledge about the location of information is

also lost.

This would reduce loss of knowledge from the

organization, as historical information

regarding implementation and effectiveness of

ICT tools on previous projects is important.

A18 Organization should devise ways of retaining

the technical staff.

It would also reduce the indirect cost of training

the staff being borne by the organization, as the

staff is getting trained on the job.

A19 Project documents at sites should also be stored

as electronic copies.

This would further increase use of ICT at sites

for referring historical information and

communicating it.

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Table 7.10 Continued

A20 Project site staff should also be given IT

training. It could be done by posting them

intermittently at head office.

A21 Adequate day-to-day IT help/support should

also be provided at project sites.

These actions would increase use of ICT by the

site staff, reduce the downtime for IT

infrastructure at site, thus increasing effective

use of ICT in the projects, as at the project

execution stage, majority of the information

communication involves project sites. These

actions would also save project time as

responses to RFIs and other decisions can be

communicated on time.

Site staff would also be able to use spreadsheet

software like MS Excel for maintaining

manpower records.

7.5.7 SAP-LAP Synthesis of Case Studies

This section presents the results of the combined analysis and synthesis of the learning

that one could possibly draw from the above studied cases. Synthesis of the case studies

shows that the identified collective actions (Table 7.11) are in response to the trends

identified earlier in Sec. 7.4.2.

Table 7.11: Relation between Identified Trends and Collective Actions Trend Issue Collective Action

T1 Videoconferencing is not planned to be adopted in next

(0-5) years.

A6

T2 Quantitative measurement of benefits not conducted A2

T3 Majority of e-information communicated between head

office and project sites is not through internet only.



downloading large files. Thus, these

files are also communicated through

storage disks.

T4 Mobile phone is the only portable communication

technology being utilized.

A4

T5 Majority of general administration information from

head office primarily gets communicated as hard

copies and e-mails.

A5

T6 Majority of the meetings for general administration are

conducted as personal meetings.

A6

T7 Majority of project time and cost management

processes information from head office primarily gets

communicated as hard copies and e-mails

A5

T8 Project bids are received as hard copies. A7

T9 Project administration meetings are primarily

conducted as personal meetings.

A6

T10 Project records at offices are primarily stored as hard

copies as well as electronic copies.

This is a cultural factor/trend.

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The study of the actions and expected performance changes highlights some important

issues.

• In all the three studied organizations, the senior managers as well as the project

managers shared the perception that use of ICT is beneficial and important for

successful projects and also conduct subjective assessment of benefits with

different perspectives. But their strategy or extent of use of ICT is dependent on

various factors including market demand, clients’ requirements, ICT capability

of the organization staff and ICT capability of the associating project team

agencies. Adequate technology is available and is not considered as an issue.

This highlights the importance of the industry level initiatives required to prepare

the industry for the increased and effective ICT adoption for building project

management.

• The senior management as well as the project managers, who are at the middle

level, are aware of the changes in the market with respect to the requirement of

using ICT, but the knowledge of features and possibilities of implementing use

of ICT differs. In BO and PMCO, project managers are supportive of the

strategy formulated by the seniors, but in PMCO they are also a part of the team

formulating the strategy. In AO, strategic use of ICT is less, but seniors initiate

the use of new ICT tools and middle level staff drives their implementation, due

to their technical knowledge about it. Also, in all the organizations, the

perception of seniors for benefits of use of ICT has been considered as an

important factor.

Thus, senior managers initiate use of ICT tools in their organization and their

knowledge upgradation is important. The middle level managers or the project

managers drive the implementation of the strategy at the project level and their

Thus use of ICT in Indian construction industry seems to be having demand pull

strategy. But, it needs to be pushed by the Industry readiness or ICT capability of

the construction professionals and organizations.

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training for the technical and implementation aspects is important. The

operational level staff would be using the technology on day-to-day basis. Thus,

their training for use of technology is important.

• BO is a bigger organization with respect to AO in terms of staff strength and

turnover of the organization, but both the organizations refer information

regarding materials through hard copies and do not have an electronic library of

the information on materials. This is due to their working methodology and

average ICT capability of all the staff in the organization.

• None of the three organizations has a functional web site, which is important for

online communication with external agencies. But, the senior managers of the

organization have not considered it as important till now as they did not perceive

market demand for it.

• Legality of e-documents is an issue. But, there is a change in the scenario as

responses to RFIs are accepted as e-mails or even as messages from the mobile

phones, even though for major works at sites hard copy approvals are required.

Also, organizations have started using data security technology like mailing

documents in ‘pdf’ format.

• Turnover of the staff is an issue. If organizations are able to retain the staff, their

training becomes viable.

• The study shows that supply chain issues of having close and long working

relationship with associating team agencies is an important issue as it helps in

developing a working methodology with these agencies.

• AO manages building projects by default. Thus, they are not able to include use

of ICT in the project scope.

This highlights the importance of training with a top down approach.

Thus, to increase use of ICT for building project management, it is important to

increase formal project management of buildings.

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• E-tendering has not been adopted by all the studied organizations. This is a trend

identified in earlier sections also. Thus, it requires pro-active action at the

organization level.

• Mode of conducting meetings in all the three organizations is primarily personal

meetings. This trend has also been identified in earlier sections. It requires

change in the working methodology at industry and organization level.

• Day to day IT help and support, both at the offices and at project sites is

considered important by all the organizations.

• Processes are not the driving component as adequate technology is available for

communicating information of the processes through ICT. For the organizations

with high strategic use of ICT, ‘Situation’ is the driving component as the

strategy has to be aligned with the situation. But, in AO that does not have a high

strategic use of ICT, ‘Actors’ are the dominant component.

7.6 Synthesis of the Case Study Analysis Results and Framework for

BenchAction and BenchMonitoring

Benchmarking of the three organizations calculated their ratings and identified ‘Trends

and Gaps in practice’ for the three organizations. BenchMeasurement conducted through

DEA analysis identified performance efficiency of the three organizations in

implementing their strategies of use of ICT. To compliment performance measurement

with performance management, reasons for the identified trends and gaps in practice

were ascertained in BenchLearning stage. It included indepth study of the three

organizations and was conducted through SAP-LAP analysis technique. Study of the

situation, actors and processes in each organization helped in learning the organizational,

cultural, social and human factors affecting use of ICT in each organization. Thus,

Industry readiness or the ICT capability of construction professionals has to be

enhanced so that ‘Situation’ remains the dominant component not constrained by

the ‘Actors’.

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actions were suggested to overcome the trends, gaps in practice and other identified

issues and formed a component of the ‘Bench Action’ stage.

Table 7.12 studies relation between identified trends, gaps in practice and suggested

actions. As identified in Chapter 5, most of the trends require action at industry and

organization levels. But, as shown in the table, organization level actions are not

suggested for trends T3 and T10 as these issues require industry level initiative. Gap G3

was identified for AO as formal training of staff is not conducted in the organization.

But, the staff gets on-job training and since turnover of the staff is high, formal training

is not considered viable. Gaps G10 and G14 also require industry level initiatives.

Actions A1, A3, A18 and A19 are in response to the other issues identified in SAP-LAP

analysis.

The suggested actions form a component of the ‘BenchAction’ stage and it is assumed

that the implementation of the following actions at the industry and organization levels

would increase effective ICT adoption for building project management in the industry.

Also, the benchmarking rating of the organizations would improve.

Communication at industry and organization levels is important for successful

implementation of the process and forms an integral component of ‘BenchAction’.

• At industry level, national bodies should create awareness about the process

through forums like seminars and conferences and communicate its importance

to the organizations. As discussed in the introduction of the benchmarking

process discussed in Chapter 3 (Sec. 3.5.3.2), benchmarking clubs should be

initiated for interaction between the different organizations. A formal rating

system like ISO certification should be initiated in the industry to increase

participation by the organizations.

• At the organization level, communication of the benchmarking process results

and suggested actions to operational as well as middle level managers is very

important for successful implementation of suggested actions in the organization.

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Table 7.12: Relation between Identified Trends, Gaps in Practice and Suggested

Actions Actions in Response to Identified Trends and Gaps in Practice Trends Gaps in

Practice BO PMCO AO

T1 A6

T2 A2

T3 This is an issue of disparity between organizations in ICT capability and can be

dealt at industry level by uniformly increasing IT capability within the industry.

T4 A4

T5 A5

T6 A6

T7 A5

T8 A7

T9 A6

T10

This is a cultural factor/trend. Construction professionals are more comfortable

referring information in hard copy formats.

G1 A14

G2 A4

G3 Due to high turnover of

staff, employees get on-

job training.

G4 A12 A15

G5 A11 A16

G6 A11 A13

G7 A8 A8

G8 A17

G9 A10 A10

G10 This is an issue of disparity between organizations in

IT capability and can be dealt at industry level by

uniformly increasing ICT capability within the

industry

G11 A5 A5

G12 A8 A20, A21

G13 A5 A5

G14 An action cannot be

formulated for this gap

as it would be difficult

for a PMCO to define

this requirement for

clients

G15 A9 A9

G16 A20

G17 A20, A21

Actions in Response to Other Issues Identified Through Case Study Analysis

A1

A3

A18

A19

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In practical terms, any performance measurement should be iterative, so that the

strategic relevance of performance measurement is consistently maintained (Costa et al.

2006). Accordingly ‘BenchMonitoring’ stage includes periodic Benchmarking and

BenchMeasurement exercise conducted in the organizations followed by BenchLearning

and BenchAction. After each Benchmarking and BenchMeasurement, it should be

identified whether existing framework is applicable or not. If it is applicable, directly

BenchLearning can be conducted. If it is not applicable, remapping of the project

management processes and adopted communication technologies should lead to

recalibration of the Benchmarking framework (Fig. 7.18).

Benchmarking and

BenchMeasurement

• Rating of Organizations

• Performance measurement

• Identification of trends and gaps

in practice

BenchLearning

(SAP-LAP Analysis)

• Study of cultural, social and

human factors affecting use of

ICT

• Identifying reasons for trends

and gaps in practice

• Suggesting actions in response to

identified factors and reasons

BenchAction

• Implementation of suggested

actions at organization level

• Implementation of suggested

actions at Industry level

Mapping of the building project

management processes adopted in the

industry and communication technology

used for the processes

Benchmarking

Framework

applicable

If Yes

If No

Recalibration of

Benchmarking

Framework

Bench

Monitoring

Fig. 7.18: Suggested Benchmarking Process

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7.7 Discussion

The suggested Benchmarking Process provides a framework for objective competitive

analysis of the organizations in the Indian construction industry with respect to ICT

adoption for building project management. It can be utilized at the industry level to map

the stratification of construction industry for ICT adoption for building project

management and also at the organization level by construction organizations for self-

analysis and identification of improvement opportunities. The measurement system is a

generic system providing a common basis for comparing use of ICT between different

organizations. The development of the benchmarking framework and benchmarking

process was done after detailed literature review. The critical success factors or the

performance indicators and the associated measurement metrics are established based on

the questionnaire survey data analysis and the semi-structured interviews conducted in

the three benchmarked organizations. Each MI in the benchmarking framework is

completely defined. Thus the complete framework is a whole comprising completely

defined parts and organizations’ use of ICT can also be measured for each of the three

components individually. The performance measurement system of ‘Benchmarking and

BenchMeasurement’ is complimented with performance management system by

including phases of ‘BenchLearning’ and ‘BenchAction’. It is conduced by SAP-LAP

analysis technique, a systematic approach of enquiry. BenchMonitoring signifies process

of continuous learning, adaptation and improvement in the organizations and in the

industry. Performance indicators identify actions for the structural changes required in

the organizations for embracing continuous improvement.

Following features would facilitate successful implementation of the framework:

• MIs measure technical or general management processes and do not require

information about the commercially sensitive information.

• Implementation of this framework by the National level bodies in the Indian

construction industry suggests benchmarking process implementation in a

collaborative atmosphere.

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• The framework includes leading as well as lagging indicators, thus its focus is on

initiating a learning atmosphere and helping organizations and the industry to

identify the strengths as well as the weaknesses.

Some important analysis results are shown below:

• Use of ICT in Indian construction industry seems to be having demand pull

strategy. But, it needs to be pushed by Industry readiness or ICT capability of

construction professionals.

• Along with having a higher Benchmarking rating, organizations should be

efficient in implementing their strategies for use of ICT.

• Industry readiness or the ICT capability of construction professionals has to be

enhanced so that the ‘Situation’ remains the dominant component not

constrained by the ‘Actors’.

• Supply chain issue of a close working relationship and a working methodology

developed between project team agencies as well as reducing the turnover of

staff in the organizations are important factors. The latter factor enhances

training of the staff by the organizations.

• Training of the staff with a top down approach is an important factor.

• To increase use of ICT for building project management, it is important to

increase formal project management of buildings.

• With respect to ‘Strategically planning project communication management’

PMCO reflects best practice for the industry.

• Benefits of use of ICT in terms of ‘project success’ and ‘increased organizational

efficiency’ are considered as important areas by all the three organizations and

subjective evaluation of these benefits is conducted.

The proposed framework is applicable for the Indian construction industry in the current

environment. Periodic review of the framework is suggested. It is required to make

suitable changes as well as to introduce the new relevant MIs and omit the MIs that are

not relevant leading to recalibration of the framework. Comparative analysis of the MIs

in the three organizations leads to the generalization of the utility of the framework and

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supplementing it with case study analysis helps in formulation of strategies for effective

ICT adoption for building project management in the Indian construction industry.

7.8 Suggested Benchmarking Framework with Reference to the Existing

Benchmarking Studies

The concept of benchmarking has received application in the construction industry as a

technique for identifying ways to improve organizational and project performance (Love

and Smith 2003). As reported by Costa et al. (2006), in recent years, benchmarking

programs for construction industries have been established in countries such as

Australia, Brazil (Costa et al. 2004), Chile (CDT report 2002), Denmark (Byggeriets

Evaluerings Center 2002), the United Kingdom (Constructing Excellence 2004), the

United States (CII report 2000), Hong Kong, Singapore, and the Netherlands (Bakens et

al. 2005). Benchmarking areas primarily include project cost, occupational health and

safety, labor productivity and customer service/satisfaction (Morehead et al. 1997 cited

in Love and Smith 2003). As reported in Chapter 2 (Sec. 2.7.2) some benchmarking

studies with respect to the use of IT/ICT in the construction industry have also been

conducted.

The unique features of the suggested benchmarking framework are:

• The suggested benchmarking framework has been developed with special focus

on ICT adoption for building project management by SMEs.

• It spans information management components of all the levels in a building

project management organization. It also includes communication management

with external agencies.

• It integrates building project management with other administrative activities of

the construction organizations and considers causal relationships between all the

processes, established after empirical data analysis.

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• Benchmarking levels are with reference to the Indian construction industry as the

minimum and maximum limits of performance measures were established after

the questionnaire survey data analysis.

• The suggested Benchmarking implementation system combines quantitative and

qualitative study and it incorporates a relation between ‘Benchmarking rating’

and ‘BenchMeasurement efficiency ‘of the organizations.

7.9 Summary

This chapter discussed finalization of the Benchmarking framework for assessing the

extent of ICT adoption for building project management by construction organizations in

the Indian construction industry. The benchmarking process is an iterative process

divided into four stages of Benchmarking and BenchMeasurement, BenchLearning,

BenchAction and BenchMonitoring. BenchLearning includes an in-depth study of the

cultural, social and human factors conducted through case study analysis using SAP-

LAP analysis technique. The benchmarking framework is used to analyze three

organizations leading to the finalization of the framework. Implementation structure of

the benchmarking process is presented. Benchmarking framework development and

administration discussed in this chapter provides guidelines for formulation of results.

Chapter 8 integrates the findings of all the data analysis components and discusses the

results.

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Chapter 8: Interpretation of Data Analysis and Discussions

CHAPTER 8

INTERPRETATION OF DATA ANALYSIS AND

DISCUSSIONS

8.1 Introduction

The research reported in this thesis concerns the investigation of issues related to

effective ICT adoption for building project management by Small and Medium

Enterprises (SMEs) in the Indian construction industry. Research was carried out with

the objectives specified in Chapter 1 and as per the research plan specified in Chapter 3.

The research process included series of studies conducted for achieving the objectives.

This chapter synthesizes the results of these research studies leading to the formulation

of a generic framework of a ‘Model of IT enhanced communication protocols for

building project management’.

8.2 Synthesis of the Study

Synthesis of the study serves to cover the learning derived from all studies and proposes

‘IT Enhanced Communication Protocols for Building Project Management’ to

accomplish the research aim. The protocols are proposed as a ‘Strategic Model for

Enhancing ICT Diffusion in Building Projects’ that takes learning from all the sources as

inputs. A strategy which draws its strength from a synthesized reservoir of knowledge

and insight is not only the most appropriate strategy in the given situation, it can also

create the most outstanding effect (if implemented) in terms of performance. These

considerations led to the conceptualization of the proposed model. The focus is on

deriving the strategic model from inputs, which are the learnings gathered from the

following important sources – literature study, Interpretive Structural Modeling (ISM)

analysis, questionnaire survey data analysis including Structural Equation Modeling

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(SEM) analysis, benchmarking framework analysis including Data Envelopment

Analysis (DEA) and case studies (SAP-LAP Analysis). These research studies are

neither standalone nor exclusive as there are informational linkages across the studies.

8.2.1 Status of ICT Adoption for Building Project Management

It was prepositioned and also observed statistically that in the construction industry

majority of the SMEs also manage the building projects independently (Ref. Chapter 2,

Sec. 2.5.3 and Chapter 5, Sec. 5.2). Thus, it is important to study ICT adoption by SMEs

as they determine the extent of ICT adoption for building project management in the

industry.

Data analysis shows that ICT adoption by SMEs in the Indian construction industry has

considerably increased in the last 5 years, but still the majority of SMEs do not have a

communication management strategy and their use of ICT for building project

management has not reached a high maturity level, since it is primarily project specific

and not organization specific. It also highlights that the extent of ICT adoption for a

project is primarily determined by the clients’ requirements and is also affected by the

variable ICT capabilities of the project team organizations. It was also observed

statistically that the increase in use of ICT by SMEs for managing building projects is

driven by the industry requirements i.e. the situation. For building project management,

collaborative use of ICT is not as prevalent as the internal use of ICT within

organizations. One of the reasons identified for this trend is the disparity between the

organizations in their ICT capabilities and can be dealt with strategically at the industry

level by uniformly increasing ICT capability within the industry.

Data analysis shows that for all the processes, mixed communication methodology is

adopted by the organizations (Ref.Chapter 5, Sec. 5.7). It is observed that for each PM

process, number of organizations using mixed communication methodology for

communication increases in the following sequence of categories of information: within

office, between office and site staff, between office and contractors/material suppliers

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and other external agencies, between office and clients/consultants. The number of

organizations primarily communicating information through e-mail is in the reverse

order.

It is a cultural factor, but it is identified in the case study analysis (Table 7.8) that it is

also because clients and consultants do not have all the software used for PM processes

and their staff is also not trained to take printouts from these software files. Thus, they

are sent e-mails as well as hard copies depending on the software utilized for project

management and the report to be communicated.

Thus, industry level initiatives are required for knowledge upgradation of the

construction clients for use of ICT for project management and for developing

uniform ICT capability of the construction organizations.

IT infrastructure at site has been perceived as an important enabler for effective adoption

of ICT for project management. Data analysis showed (Fig. 5.7) that even though in

majority of the surveyed organizations, more than 80% of the office staff has access to

computers, in only about 20% organizations more than 80% site staff has access to

computers. Also, it has been identified by the respondents of the survey that connectivity

through Internet is poor in the remote project sites and downtimes are very high.

Industry level initiatives are required for providing consultancy to the

organizations for adopting appropriate technological solutions for the remote

project sites. Organization level initiatives are required to strategically provide

adequate IT infrastructure at site.

High turnover of staff especially in the smaller organizations is an important barrier

affecting adoption of ICT (Ref. Chapter 5, Sec. 5.6.1). Case study analysis identified that

this is an important issue for AO. PMCO and BO have dealt this issue through proactive

HR policies. Case study analysis showed that the studied BO functions on maintaining a

working relationship with their associating agencies. Most of the contractors and other

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associating agencies have been working with it for a long time and a working

methodology has developed between these agencies and the organization under study.

Thus, even though the use of ICT for its projects is not defined through the relevant

contract clauses, the contractors and other external agencies primarily use ICT on most

of the projects as per the strategy of the organization. Thus, organization level

initiatives are required to adopt proactive HR policies in order to retain their old

staff and resolve other supply chain measures.

E-tendering is not a norm in this industry. It is due to a combination of factors like:

perception of data security, variable ICT capabilities of associating project team

organizations and cultural factor of conducting personal meetings. This requires

organization level initiatives to adopt e-tendering and industry level initiatives to

provide education and training to the construction organizations to strategically

adopt e-tendering.

Questionnaire survey data analysis showed that ICT adoption for building project

management is maximum by PMCOs and minimum by the Architectural organizations.

Identified reasons for this issue are the extent of formal project management processes

conducted by the organizations and their use of advanced IT tools for building project

management processes. Study showed that the Builders use more advanced IT tools as

compared to Architectural organizations but they have maximum standard deviation for

this factor (Ref. Chapter 6, Sec. 6.7.2). Thus, strategic initiative at the industry level

is required for organizing training programs for SMEs for familiarizing their staff

with formal project management processes and for use of advanced IT tools for


8.2.2 Perceived Barriers, Benefits and Enablers for Effective ICT Adoption

The factors affecting ICT adoption are studied at three levels: Industry, Organization,

and People who manage the projects and define the use of ICT in the organizations. For

the study of perception based factors, people level factors get translated to projects and

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technology level factors. Study of the perceived barriers shows that the industry related

barriers are among the top 50% barriers, organization related barriers are in the middle

and lower levels, technology related barriers are among the last 40% barriers and the

identified project related barrier is in the middle. Organizations perceive that the

available technology in terms of ICT infrastructure is primarily adequate. Highest

ranked barriers are the industry related barriers related to the supply chain issues,

separation of project stages, fragmented construction industry with organizations having

different ICT capabilities and lack of strategic direction within the industry. These

barriers lead to the next important barriers of non-availability of critical mass of projects

requiring use of ICT and non-standardization within the industry. Mitigation of these

barriers requires strategic initiatives at the industry level. Next are the organization

related barriers related to the high cost, which also require initiatives at the industry level

for providing incentives to SMEs by subsidizing the cost of ICT tools. Unwillingness of

senior executives to adopt ICT is also an important barrier.

Study of the perceived enablers for mitigation of the barriers shows that the industry and

organization related enablers are primarily in the top and middle levels, technology

related enablers are in the middle and bottom levels and projects related enablers are

distributed at all the levels with the most important enablers being improved IT support

to sites and planning of information flow in the standardized formats. This analysis

shows that to reduce the effect of people level factors, strategic initiatives are

required at the industry and organization levels: to educate and train people or

construction professionals for effective ICT adoption and its benefits, to study

factors affecting supply chain issues, to provide required technology in terms of

ICT infrastructure, to customize the infrastructure for use of common or shared

systems, and to champion the cause of the use of ICT at the industry, organization

and project levels.

SMEs perceive that the use of ICT leads to significant benefits in terms of measures of

project success, team management issues, effective use of technology and increased

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organizational efficiency. Interpretive Structural Modeling (ISM) analysis provided a

structure to the complex issue of importance of perceived benefits of ICT. In the

developed ISM model, project related benefits are primarily at the top of hierarchy, team

management related benefits are primarily in the middle and technology and

organization related benefits are primarily at the bottom of the hierarchy. It shows that

the organization and technology related benefits have high driving power and these are

‘strategic benefits’ for the project team organizations. Thus organizations are required to

give more attention to strategically increasing these benefits from the use of ICT, and if

use of ICT for general administration in the organization is matured, appropriate IT tools

are included in the working framework and team management issues are planned at the

earlier stages of the project, then project related benefits will be achieved by default.

This indicates that the four groups of benefits are inter-related and cannot be achieved in

isolation. It was also observed statistically in the questionnaire data analysis that the four

groups of perceived benefits are interrelated (Ref. Chapter 5, Sec. 5.4.3.4). This analysis

provides a road map for the managers or project management organizations to decide

that if they are strategically planning use of ICT for achieving certain benefits then what

are the other driving benefits that should be achieved prior to that and also what are the

dependent benefits that will be achieved by default. The road map provided by this

analysis could form an important component of the benefits management plan for SMEs.

Case study analysis indicates that quantitative assessment of these benefits is not

conducted and subjective analysis is also conducted by each organization for only

specific groups of benefits and not for all the benefits.

The cumulative responses of the surveyed organizations showed that 35.57% surveyed

organizations perceived medium level barriers and benefits, 2.01% organizations

perceived high level barriers and medium level benefits, 47.65% organizations perceived

high level benefits and medium level barriers and 14.76% organizations perceived high

level benefits and barriers. Low level benefits and barriers were not perceived by any

organization. Scenario building for the adoption of ICT by the organizations with respect

to the perceived benefits and barriers indicates that an organization’s use of ICT would

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be of high level, only if it perceives low level barriers and high level benefits. This is

validated in the study of the benchmarking framework analysis. The cumulative scores

for the identified perceived benefits and barriers for the three studied organizations are

as given below (Table 8.1). Levels for the cumulative scores of the perceived benefits

and barriers are explained in Chapter 5 (Sec. 5.6.4) and levels for Benchmarking Rating

are explained in Appendix D.

Table 8.1: Relation between the Suggested Scenario Building framework and the

Benchmarking Framework Cumulative Scores and Level Organization

Benefits Barriers

Extent of use of ICT

as per Suggested

Scenario Building

Framework

Extent of use of

ICT as per

Benchmarking

Rating

BO 146 High 62 Medium Medium Level Middle Level

PMCO 147 High 61 Medium Medium Level Middle Level

AO 140 High 62 Medium Medium Level Middle Level

Thus, it is validated that an organization that perceives high level benefits and medium

level barriers for effective use of ICT for building project management would have

medium level of use of ICT. Further case study analysis highlights that these

organizations are planning and taking proactive measures for further increased use of

ICT.

Thus, industry level initiative is required to modify the perceptions of the

construction professionals through education, training and show-case projects.

Organization level initiative is also required to provide proactive atmosphere in the

organization to modify the perceptions of people.

8.2.3 Causal Relationships between Factors

Questionnaire data analysis shows that organizations with higher turnover have higher

ICT adoption. Thus, the larger organizations in terms of turnover should define the use

of ICT as the scope of work for associating project team organizations and in the process

increase ICT capability of the smaller organizations.

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Structural Equation Modeling (SEM) analysis proved that there is a causal relationship

between the factors affecting ICT adoption for building project management. Analysis

of these causal relationships validates ISM analysis results and helps in the

understanding that an increased and matured use of ICT for general administration

within the organization would lead to an improved ICT infrastructure within the

organization, development of electronic databases and the staff that is confident of using

IT tools. In such a scenario, staff would use advanced software and IT technologies for

the project management processes and that would lead to increased adoption of ICT for

project management processes. This factor was also highlighted in the case study

analysis. In the studied BO, ERP implementation was initiated in year 2000, but it was

not successful. In the process of ERP implementation, IT infrastructure within the

organization was enhanced and it is a view within the organization that even though

ERP implementation was not successful, staff got the chance to work more on

computers, thus increasing their IT capability, which helped in their increased adoption

of ICT for project management. But, for general administration also, ICT usage would

be enhanced if the organization is interacting more with geographically separated

agencies and senior management perceives that significant benefits would be accrued by

adopting ICT. All the factors are inter-related and their effect cannot be maximized in

isolation.

8.2.4 Cultural Factors

The following Cultural factors are identified that are required to be considered while

formulating the model.

C1: Communication in which e-mail is followed by phone call is significant.

C2: Hard copy storage of data and documents is substantial even if electronic copies are

also kept as a backup.

C3: Most of the e-mails are followed by hard copies.

C4: Personal or face to face meetings are still preferred over teleconferences and other e-

meeting solutions for managing building construction projects.

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Gudykunst (1991, p.51) suggests that the members of low-context and individualistic

cultures tend to communicate in a direct fashion while members of high-context

collectivistic cultures tend to communicate in an indirect fashion (Tone 2005). Indian

society falls under the second category where communication of tacit knowledge forms

a very important component of communication. This factor contributes to the preference

of personal or face to face meetings over teleconferences and other e-meeting solutions

and e-mails followed by phone calls. It is also perceived that contacting people

personally after sending e-mail leads to faster decision making.

Most of the e-mails are followed by hard copies, as official records are primarily stored

as hard copies even if the electronic copies are kept as back-up and for important

decisions, signed hard copy documents are required. Also, the majority of the

construction professionals specially senior executives and the site staff are more

comfortable in referring archival information in hard copy documents.

These are people and organization level cultural factors, which also reflect the national

industry level cultural factors since these are identified as trends in the industry. These

are a combination of the national culture as well as the professional culture i.e. the

culture of the construction industry in India where majority of the organizations are

SMEs. National cultures refer to profound beliefs, values and practices that are shared

by the vast majority of people belonging to a certain nation. Professional beliefs,

meanings and symbols constitute a stand-alone system in a national culture making it a

possibility that not all the members of a national culture will understand and interact in a

professional culture without proper training or practice (Tone 2005).

An organization can lose competitive advantage, if outdated cultural attitudes are

retained. While this can happen in a single organization, it can also be true of a whole

industry, where outdated cultural attitudes are retained. This may occur where personnel

transfer from organization to organization within an industry, with few people

transferring in from other sectors (Sturges and Bates 2001).

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Thus, strategic initiative at the industry level is required to minimize the effect of

these factors by educating and training people. It would help in modifying work

processes and increasing inter-sectoral interaction of professionals with other

sectors or industries having similar work practices.

8.2.5 Benchmarking Framework Analysis

Peter Drucker wrote ‘‘What gets measured gets managed.’’ (Duff 2000 cited in Fang et

al. 2004) and to increase ICT adoption for building project management, we need a

system to periodically measure the extent of ICT adoption for building project

management within each organization and collectively within the industry. In response

to this identified requirement, a benchmarking framework has been formulated. The

suggested framework offers organizations in one of the India’s largest and most vital

industries a system for benchmarking that is customized for the industry. The suggested

benchmarking process comprises the four iterative stages of Benchmarking and

BenchMeasurement, BenchLearning, BenchAction, and BenchMonitoring.

Salient features of the suggested Benchmarking framework are shown in Fig. 8.1.

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BenchMeasurement measures efficiency of benchmarked organizations in implementing

their strategies for ICT adoption for building project management. The analysis is

conducted through Data Envelopment Analysis technique (DEA).

Benchmarking Framework Structure

Benchmarking Framework Attributes

Benchmarking Framework Administration

Strategic Indicators: MI1+MI2+MI3

Use of ICT for General Administration-Works Indicators: MI4+MI5

Use of ICT for Building Project Management-Processes Indicators: MI6+MI7+MI8

Rating Value = 3(MI1+MI2+MI3) + 2(MI4+MI5) + MI6+MI7+MI8

Rating Levels: Low. Medium, High

• It is a generic framework, includes leading as well as lagging indicators.

• Measurement indicators (MIs) measure ICT adoption at all the management levels

of a construction organization.

• Each MI is completely defined and the complete framework is a whole comprising

completely defined parts. Thus ICT adoption for each of the three groups of MIs

can also be measured separately.

• Such a framework is specially suitable for SMEs as they are expected to focus

more on short-term rather than long-term benefits.

• The framework should be administered at the industry level through a joint effort

of national level bodies, construction clients, individual building construction

organizations and research institutions.

• The suggested framework can be implemented at the industry level to map the

stratification of construction industry for ICT adoption for building project

management and also at the organization level for self-analysis and identification

of the improvement opportunities.

Fig. 8.1: Salient features of the Suggested Benchmarking Framework

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The suggested framework compliments performance measurement system with the

performance management system by including phases of ‘BenchLearning’ and

‘BenchAction’. Supporting qualitative study in the BenchLearning stage conducted

through SAP-LAP analysis of benchmarked organizations identifies sources of

performance problems or gaps in practice with respect to the best practice and

establishes critical links to the research based tools essential for addressing these

problems.

Following features will facilitate successful implementation of the framework:

• MIs measure technical or general management processes and do not require

information about commercially sensitive issues.

• Benchmarking process implementation is suggested by national level bodies in

the Indian construction industry in a collaborative atmosphere.

• The framework includes leading as well as lagging indicators, thus its focus is on

initiating a learning atmosphere and helping organizations and the industry to

identify the strengths as well as weaknesses.

Study of the Indian construction industry shows that till now no major study has been

conducted to measure ICT adoption in the Indian construction industry. It reflects that

there is no external demand in the industry at the moment or there is no perceived

requirement of such a system. However, data analysis shows that increased collaboration

between research and practice is a perceived middle level enabler (Ref. Chapter 5, Sec.

5.6.2), which requires action at the Industry level. Thus, strategic initiative at the

industry level is required to educate the people and the organizations about the

requirement of such a measurement or benchmarking system and for periodically

conducting studies and surveys to realistically recalibrate the framework.

The benchmarking framework was administered by benchmarking one organization each

from the three groups of organizations studied i.e Builders (BO), Project management

consultancy organizations (PMCO) and Architectural organizations (AO). Gaps in

practice for each organization were identified and trends i.e. gaps common for all the

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three organizations were also identified. Benchmarking framework analysis identified

that the values of strategic planning indicators (MI1, MI2, MI3) are higher for PMCO

and BO but low for AO and PMCO reflects the best practice for ‘Strategic project

communication’ (MI2). But, indicators MI4 to MI8 reflecting ICT infrastructure

maturity of the organizations and use of ICT for general administration and for project

management processes have medium level values for the three organizations, highest for

PMCO and lowest for AO. DEA shows that even though AO has the lowest

benchmarking rating in the three organizations, it is 100% efficient in implementing its

strategies for ICT adoption. PMCO has also been rated as 100% efficient as its values

for indicators MI4-MI8 are comparable with its values for strategic indicators (MI1-

MI3). But, BO’s efficiency value for implementing its strategies is 89.6%, even though

its benchmarking rating is higher than that of AO. Analysis also identified 17 gaps in

practice amongst the three studied organizations and 10 trends that were common to all

the three organizations. Out of these, 9 trends were also identified statistically in the

questionnaire data analysis and categorized as issues that require action. Thus, these are

the trends of SMEs in the Indian construction industry.

SAP-LAP analysis studied reasons for the identified gaps and trends. It also identified

that in the study of situation-actor-processes, ‘Processes’ are not the driving component

in ICT adoption by the studied organizations, as adequate technology is available for

communicating information of the processes through ICT. For the organizations, which

have higher strategic use of ICT, ‘Situation’ is the driving component as the strategy has

to be aligned with the situation. But, in AO, which has low strategic use of ICT, ‘Actors’

are the dominant component. Thus Industry readiness or the ICT capability of the

construction professionals has to be enhanced so that the ‘Situation’ remains the

dominant component not constrained by the ‘Actors’.

The identified trends reflect that advanced tools of ICT like intranet, interactive

organization websites, videoconferencing, and web-based project management are not

being used. Case study analysis shows that the organization level strategies for BO and

PMCO include these tools perceiving the market demand, and AO is also using tools

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like web cameras at site as per the clients’ requirements. But none of the three

organizations plans to be market leaders for higher technology adoption. The identified

reasons are lack of awareness of these tools and lack of perceived industry demand.

The following reasons are identified for the above discussed trends or issues:

• Cultural factors with respect to the industry

• Variable ICT capabilities of organizations in the industry

• Unrealistic strategy formulation

• Unsuccessful implementation of the strategy

As discussed above, to mitigate the effect of the first two reasons strategic action is

required at the industry level and for the last two reasons strategic action is

required at the organization level.

As discussed in Chapter 3 (Sec. 3.6.1), with respect to Roger’s ‘Diffusion of Innovations

Theory’, construction organizations can be categorized under the following five groups

for their use or adoption of ICT for building project management:

• Innovators

• Early adopters

• Early majority

• Late majority

• Laggards/Traditional/Technically averse

Rating of the organizations by suggested benchmarking framework leads to the

categorization of organizations under these five groups. It is also shown schematically in

Fig. 8.2.

• Innovators are the organizations, which have high level strategy for ICT

adoption and are able to implement the strategy due to the readiness and high

ICT capability within the organization. These organizations would also be able to

include use of ICT as a scope of work for their projects.

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• Early Adopters are the organizations, which have low or medium level of

strategy, but their use of ICT would be high. Thus, these organizations are partly

ready before adopting new ICT technologies and partly get changed in the

process of using the technology. It reflects that these organizations have high

ICT capability and readiness.

• Early Majority organizations have medium or high level strategy for ICT

adoption. They would have studied its use in the industry and on their earlier

projects and would want to increase ICT adoption for their projects. But, their

use of ICT is of medium level as the ICT capability and readiness within the

organization is not of high level and ICT capability of their associating team

members would also not be high.

• Late Majority organizations have medium to high level strategy for ICT

adoption, but low level use of ICT or they have low level strategy and medium

level use of ICT. This reflects that these organizations want to increase their ICT

adoption, but are not able to plan it and their strategy is not aligned with their use

of ICT. Such organizations would be incurring high cost in use of ICT as they

would not be able to use ICT effectively.

• Laggards or Technically Averse organizations have low strategy and low use

of ICT. These organizations would adopt any technology only when it becomes

urgent to adopt it. These organizations’ would have very low ICT capability and

readiness and would be hiring ICT trained staff only as per the requirement of

each specific project.

Diffusion of a technology in the society happens when it is adopted by the early majority

organizations. Moore (1991) discusses that most important time gap in technology

adoption is the time gap between technology adoption by early adopters and early

majority organizations as many a time adoption of a technology slows down after early

adopters stage. He has termed this time gap as ‘Chasm’ period.

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Hig

h

Late Majority

BO, PMCO

Early Majority

Innovators

Med

ium

Late Majority

AO

Early Majority

Early Adopters

Str

ateg

y f

or

Use

of

ICT

(M

I1-M

I3)

Lo

w

Laggards/

Technically

Averse

Late Majority

Early Adopters

Low Medium High

ICT Infrastructure Maturity and Use of ICT (MI4-

MI8)

Fig. 8.2: Categorization of Building Project

Management Organizations for ICT adoption as

derived from the Benchmarking Framework

analysis

BO, PMCO and AO can be categorized as Early Majority organizations (Fig. 8.2). The

factors affecting ICT adoption in these organizations and the factors perceived by these

organizations as important are identified in the SAP-LAP analysis. These are the factors

affecting the ‘chasm’ period and are discussed in detail in Chapter 7.

Building construction is a multi enterprise work and to increase effective ICT adoption

for building project management in the industry, ICT capability and readiness of all the

organizations in the industry is required to be improved or an industry level shift is

required (Fig. 8.2). An industry level initiative is required to help the organizations

in their upgradation from Laggards to Late majority, Late majority to Early

majority, Early majority to Early adopters and Early adopters to Innovators.

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8.3 Model of IT Enhanced Communication Protocols for Building Project

Management

Communication protocols define the accepted method of generating, coding, storing and

communicating information. In a building project, information is generated, stored and

communicated at all the stages of the project and by all the supply chain members or the

associating project team organizations. So, to have effective communication, all the

agencies are required to follow the accepted methods or the communication protocols.

At any time, each construction organization is involved in more than one project and is a

part of more than one supply chain. This unique nature of the construction industry

necessitates that the communication protocols are adopted by the industry as a whole

and do not remain project specific. As discussed in Chapter 1 (Sec. 1.1.3), with the

advent of ‘IT enhanced communication’ or ICT, communication protocols that support

the effective adoption of ICT by the whole industry are required. These protocols are

required to address technical, managerial, social and cultural issues and are to be

implemented at the levels of industry, organization and projects or people.

Strategic ICT adoption by majority of the organizations or SMEs for majority of the

building projects would lead to its diffusion in the industry. Thus, the communication

protocols should facilitate diffusion of ICT for building project management. Diffusion

of a technology occurs when the chasm period is crossed and it is adopted by the Early

majority organizations.

Research has been conducted with respect to Indian construction industry and the model

of diffusion of ICT for building project management in the Indian construction industry

is based on Everett Roger’s ‘Diffusions of innovations theory’. It is formulated with the

following concept derived after analysis and given in Chapter 7:

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Use of ICT in the Indian construction industry seems to be having a demand pull

strategy. But, it needs to be pushed by the Industry readiness or ICT capability of

the construction professionals and organizations.

The model is formulated at the three levels of study i.e. industry, organization, and

people and is discussed as a generic framework of five stages of Roger’s ‘Diffusions of

innovations theory’ i.e. Knowledge, Persuasion, Decision, Implementation, and

Confirmation (Ref. Chapter 3, Sec. 3.6). As per Roger’s theory, it’s a sequential process

with each stage leading to the next. The suggested model is a modification of the theory

as data analysis and literature study have identified that it will be a cyclic process with

‘confirmation’ leading back to further ‘knowledge’ upgradation.

8.3.1 Industry Level Framework for Planning, Designing and Implementing

‘Strategic Model for Enhancing ICT Diffusion in Building Projects’

The data analysis and literature study have led to the formulation of an industry level

framework for planning, designing and implementing ‘Strategic Model for Enhancing

ICT Diffusion in Building Projects’. Fig. 8.3 summarizes the framework in five stages.

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Fig. 8.3: Industry Level Framework for planning, designing and implementing


Knowledge

Persuasion

Decision

Implementation

Confirmation

A national level initiative should be taken collectively by the national bodies, large organizations

and research institutions to gain knowledge in the following areas:

• Similar countrywide initiatives in other countries.

• Identification of the countries, which have similar industry structure and study of their ICT

adoption for building project management.

• Study of the status of ICT adoption in the Indian construction industry and factors affecting ICT

adoption for building project management. The studies could be conducted through surveys and

research projects.

The analysis of the knowledge gained would lead to the finalization of the level of ICT usage

sustainable in the country considering the structure of the industry, identified factors including

cultural factors, affecting supply chain issues and the working methodology in the industry.

This stage involves defining the ‘Vision for ICT adoption’ in the industry and ‘Strategy for ICT

adoption for building project management’ in the industry. As the results of data analysis show that

there is a positive causal relationship between the use of ICT for general administration works and

for building project management processes, Vision would be broad based, long term and would aim

at increasing use of ICT for all the functions in the industry leading to the formulation of the

Strategy. Strategic plan would be for 3-5 years horizon and would be detailed.

Data analysis shows that in the Indian construction industry, it is perceived that adequate technology

is available. Non-technological issues or trends have been identified through questionnaire data

analysis (Ref. Chapter 5, Sec. 5.10) and benchmarking framework analysis (Ref. Chapter 7, Sec.

7.4.2), which require action at the industry level. Table 8.2 lists the required strategic industry level

implementation actions and also identifies the organization and people level stages that these actions

would lead to or facilitate.

This stage includes assessing the level of ICT diffusion in the industry for building project

management. It would require periodic benchmarking of the construction organizations for ICT

adoption for building project management. The suggested benchmarking framework forms a

component of this stage.

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Table 8.2: Required Strategic Industry Level Implementation Actions No. Issue Action required Leading to

Issues that require action at Industry level

1.

Use of ICT is primarily defined by

clients’ requirements

Increase awareness of construction

clients for use of ICT through

media/conferences/seminars

3. Large organizations and professional

bodies are required to take a pro-

active approach and establish

benchmark practices for use of ICT

for building project management

• Establish benchmarks for use of ICT

for building project management in

the Indian construction industry

• Identify an industry in India with

similar work practices for parallel

industry benchmarking

• Establish a benchmarking framework

for rating organizations for use of

ICT for building project management

• Evolve a system and atmosphere of

conducting collaborative

benchmarking leading to more

organizations participating in the

process and improvement in use of

ICT at industry level by creating a

learning atmosphere

• Identify countries, which have

similar industry structure for global

benchmarking

4. Cost of IT infrastructure is perceived

high by SMEs

Cost of IT infrastructure should be

made affordable for SMEs through

incentives and other such initiatives

Persuasion

Organization

level

5. Connectivity through Internet is poor

in remote project sites and

downtimes are very high

Educate construction organizations

about the appropriate technology to be

used at project sites

Knowledge

Organization

level

6. Collaborative use of ICT is less as

compared to internal use of ICT

within the organizations

• Establish framework for increasing

ICT capability of organizations

across the industry through training

programs

• Identify supply chain issues affecting

collaborative use of ICT

• Educate construction organizations

for increasing collaborative use of

ICT for construction projects and

resolving the identified supply chain

issues

Knowledge

Organization

level

Persuasion

Organization

level

7. For high-level use of ICT,

organizations or the people should

perceive high benefits and low

barriers for effective use of ICT for

building project management

Modify perceptions of construction

professionals through:

• conferences/seminars

• training

• showcasing examples of projects

using ICT successfully

Knowledge

Organisation

level

People level

8. Training and education of

construction students and executives

is important

9. Use of higher technology is required

Include following subjects in the

curriculum of construction students and

organize accessible and affordable

training programs for executives for

Knowledge

Organization

Level

People level

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10. Extent of use of ICT for building

project management differs for three

groups of sample organizations i.e

PMCOs, Builders and Architectural

organizations and decreases in this

order.

T2 Quantitative measurement of

benefits not conducted

following areas:

• formal project management

processes

• computerized project management

• use of ICT for building project

management

• knowledge about use of higher

technology ICT tools

• Evaluation of ICT systems through

subjective and quantitative

measurement of benefits

Issues that require action at Organization level

11. Organizations should have a

communication management

strategy for the organization and for

each project

12. IT infrastructure at project sites and

IT capability of site staff is an

important factor and needs

improvement in the Indian

construction industry

13. E-tendering is not a norm in the

industry

C2 Hard copy storage of data and

documents in organizations is

substantial even if electronic copies

are also kept as a backup

C3 Most of the e-mails communicated

from an organization are followed by

hard copies

• ‘Persuade’ or convince organizations

with benefits of ICT over traditional

methods of communication in

present scenario and perceived

increase in value of the organizations

after its adoption.

• Assist organizations in ‘decision

making’ for planning and

implementing strategic use of ICT in

the organization and for building

project management and planning

required changes in the organization

and work methodology

Persuasion

Decision

Organization

level

Cultural issues that require action at People level

C1 Communication in which e-mails

sent by a construction professionals

are followed by phone calls are

significant

C4 Personal meetings are still preferred

by construction professionals over

teleconferences and other e-meeting

solutions for managing building

construction projects

• ‘Persuade’ or convince people with

benefits of ICT over traditional

methods of communication in

present scenario

• Provide ‘knowledge’ to people for

effective use of ICT and change in

work methodologies required for

effective use of ICT

Persuasion

Knowledge

People level

The knowledge has to be gained by generating an interface between the industry and

academics and complimenting practical knowledge with the research tools and

inferences. This will augment the knowledge of all concerned. This will lead to

persuasion of the national level bodies in terms of finalization of the level of ICT usage

sustainable in the industry. Defining the Vision at the decision stage will create a

common objective and approach across the industry and will lead to defining the

strategy for implementation of the vision. Implementation of the framework requires

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equal consideration of the associated technological and non-technological aspects. Also,

available technology should be suitable for the processes and its implementation should

consider the cultural factors. Thus, adoption of the new technology requires

consideration of the culture in the industry and modification or reengineering of the way

of working if required, so that the technology can be used effectively and the system

should be sustainable. Periodic benchmarking at the confirmation stage will:

• help in rating the organizations in three levels: high, medium and low.

• help in measuring efficiency of the organizations in implementing their strategies

for ICT adoption.

• identify the structure or stratification of the industry with respect to the above

rating and efficiency levels.

• help in categorizing the organizations under five categories of innovators, early

adopters, early majority, late majority and laggards. It will also identify the

structure or stratification of the industry with respect to the above five categories.

• identify gaps in practice and issues affecting the chasm period for adoption of

new ICT tools and technologies by early majority organizations.

• identify requirement of recalibration of the benchmarking framework, i.e.

requirement of fresh studies to upgrade the ‘knowledge’ of national bodies taking

industry level initiatives leading to recalibration of the framework.

Thus ‘confirmation’ stage leads back to the ‘knowledge’ stage, resulting in a cyclic

process.

8.3.2 Organization Level Framework for Planning, Designing and Implementing


The data analysis and literature study led to formulation of an organization level

framework for planning, designing and implementing ‘Strategic Model for Enhancing

ICT Diffusion in Building Projects’. Fig. 8.4 summarizes the model in five stages. For

the detailed discussion, the five stage model is further divided into 8 steps.

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Step 8: Post Implementation System Monitoring

• System maintenance

• Periodic evaluation of the system for measures of

success, achieved benefits and associated barriers

Co

nfi

rma

tio

n

Fig. 8.4: Organization Level Framework for Planning, Designing and Implementing

Strategic Model for Enhancing ICT Diffusion in Building Projects

Step 1: Knowledge, Persuasion and Decision

• Assessment of organization’s business objectives, industry’s

adoption of ICT and projected usage

• Persuasion of the senior management in the organization for

Strategic ICT adoption for building project management

• Formulation of the Vision and Strategy

Cy

clic

pro

cess

of:

• V

isio

n a

nd

str

ateg

y u

pd

atio

n

• S

yst

em m

od

ific

atio

n a

nd

red

esig

n

• P

lan

nin

g a

nd

im

ple

men

tati

on

of

upd

ated

sy

stem

des

ign

Step 5: Familiarizing associating project team

organizations with the designed system

Step 6: Pilot Implementation

Step 7: System Implementation

Step 3: System Planning (Collective Planning) Planning for system design and implementation in

terms of time, resources and cost

Step 4: System Design and preparation of

the organization for the new system

Step 4b: Technology

Group Works

Step 4a: Management

Group Works

Imp

lem

enta

tio

n

Step 2a: Management Group Works

Step 2b: Technology Group Works

Step 2: Finalization and Implementation of the Strategy

for ICT adoption for Building Project Management Finalization of system specifications by equal consideration of

the non-technological and technological aspects

Step 2c: Collective Works

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Step 1 includes the stages of Knowledge, Persuasion and Decision, Step 2-7 form the

Implementation stage and Step 8 includes the Confirmation stage leading to the stages of

periodic Knowledge upgradation, Persuasion and Decision.

8.3.2.1 Step 1: Knowledge, Persuasion and Decision

An organization adopting ICT strategically for building project management should first

gain knowledge about use of ICT tools and technologies, status of ICT adoption in the

industry and the projected usage.

This will be followed by the assessment of its area of expertise, services provided,

organization and management structure, associating organizations on the projects or

supply chain partners, position in the industry and planning for the future, status of use

of ICT in the organization and ICT capability of its staff. This assessment is required to

identify and evaluate organization’s needs, problems, objectives and persuasion of the

senior management for strategic ICT adoption for building project management.

This will lead to the decision about defining the ‘Vision for ICT adoption’ in the

organization and ‘Strategy for ICT adoption for building project management’. It is

important for the senior management in the organization to be involved in the strategic

planning process and to understand the strategic and value-adding opportunities that ICT

can provide. It can only happen if they have knowledge about the usage of ICT tools and

technologies. As organizations formulate their Vision, they should definitely consider

the possibility of being Innovators in the industry. But, as per Retik and Langford (2001,

p.137), Porter and Miller (1985) have suggested that any organization which has a vision

to be a frontrunner or a leader in the industry for adoption of technology, should

consider answering the following questions: Is the technological lead sustainable, what

are their first-mover advantages and what disadvantages are there in being the first

mover? Accordingly strategy needs to be defined. It was identified in the questionnaire

survey data analysis, that only about 1% of the surveyed organizations had partially

adopted web based project management for one or two projects. But, it was found that a

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medium sized architectural organization had done a study of the construction industry

and had assessed that there was a rise in the construction activity in the country,

overseas organizations had increased their operations in the country and in next 3-4

years, it will be imperative to adopt web enabled communication and project

management for sustaining the competitive advantage. This organization wanted to take

the technological lead in the industry and had developed a strategy for implementation

of web based project management for their projects.

The perceived barriers for effective adoption of ICT for building project management

and associated enablers identified in the data analysis require consideration while

defining the strategy. Subjective and quantitative assessment of the perceived benefits

for ICT should be conducted for strategy formulation.

SMEs may perceive that having a strategic management and process analysis department

may not be sustainable for their organization. But, articulating their vision for the

organization and formulating a set of objectives and a plan for achieving them will be a

useful exercise. National level bodies in the construction industry should take initiatives

to provide consultancy to SMEs to define strategies for the organization using emerging

techniques and should develop and maintain data and information bases for the

organizations.

These stages of ‘Knowledge’, ‘Persuasion’ and ‘Decision’ require training of the

senior executives of the organization and their knowledge enhancement through

conferences/seminars conducted at national and international level.

8.3.2.2 Step 2: Finalization and Implementation of the Strategy for ICT

Adoption for Building Project Management

Strategy implementation should be managed like a project. Users or the organization

staff at all the levels and at all the project sites and IT specialists should work together to

integrate all activities, work processes and levels in the organization. A very transparent

process of defining change by adopting strategic ICT adoption and assuring people of its

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requirement is to be followed. Such a system could be achieved if the project team is

cross-functional and divided into a management group and a technology group for equal

consideration of the non-technological and technological aspects.

A detailed time schedule should be prepared for the finalization and implementation of

the solution. Both the groups will be required to adhere to this time schedule and study

the following aspects:

Step 2a: Management Group Works

Management group works can be summarized as under:

• Assessment of the organization structure.

• Evaluation of the existing support infrastructure in the organization.

• Assessment of the capabilities, concerns and limitations of the users.

• Assessment of the culture within the organization and within the associating

project team organizations.

• Education of the users regarding vision and strategy.

• Incorporation of users’ views.

• Education of the users about capabilities and limitations of the technology.

• Assessment of the expected benefits of ICT investment.

• Selection of the project team for coordinating, monitoring and implementation of

the system.

• Selection of the post implementation monitoring team.

• Study of the associated legal issues.

Step 2b: Technology Group Works

Technology group works can be summarized as under:

• Mapping of project management and associated general administration processes

executed within the organization. It should take into account the intra and inter

departmental as well as inter organization processes.

• Assessment of the present use of IT applications and communication

methodology for their effectiveness.

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• Planning for use of advanced ICT tools and technologies.

• Formulation of specifications for the integrated use of ICT in the information

systems.

• Standardization of technologies, information and data within the organization

and if possible with associating organizations.

• Decision about the technical parameters for the system.

• Assessment of the likely maintenance requirement and the system for

upgradation of the hardware and software.

Step 2c: Collective Works of Management Group and Technology Group

Collective works of the management group and the technology group can be

summarized as under:

• Modeling improved processes while adopting ICT strategically.

• Defining and detailing out the alternative system solutions including associated

technical and non-technical aspects.

• Prioritization of the alternative solutions and finalization of the solution.

• Preparation of the budget and cost-benefit analysis.

• Implementation method finalization.

• Finalization of the training requirements of the users and the requirement to hire

new staff.

At each organization level, staff can be categorized in three groups for their

use of ICT: Early adapters or creative users, Normal users, and Late

adapters. Accordingly the training requirements need to be finalized (Ref.

Chapter 3, Sec. 3.6.1). Training objective will be to create a shift in the

organization staff from late adapters towards early adapters as early adapters

will play a crucial role in strategy formulation and normal users will define

effective use of ICT within the organization.

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8.3.2.3 Step 3: Planning

Management Group and Technology Group should collectively prepare a time schedule

for design and implementation of the system.

8.3.2.4 Step 4: System Design and Preparation of the Organization for the New

System

Step 4a: Technology Group Works

Technology group works can be summarized as under:

• System design including finalization of the hardware and software specifications.

Important points that are required to be considered while doing system design

are: Adequate flexibility to be provided in the system; System agility to respond

to changes in the size and workload of the organization and to developments in

technology; Hardware and software compatibility; consideration of users’ exact

requirements; user friendly system.

• Data and documents conversion, as data and document records maintained in the

old system are required to be converted for reference and use in the new system.

• Hardware procurement.

• Software procurement or design.

Step 4b: Management Group Works

Management group works can be summarized as under:

• Training and education of staff for the new system.

• Hiring new staff.

8.3.2.5 Step 5: Familiarizing Associating Organizations with the System

Adopted

Associating project team organizations are required to be informed about the new

system to be adopted in the organization. An effort should be made to standardize data

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and information transferred between the organizations and to have compatible

technology. Common information databases could be shared between the organizations.

If standardization cannot be achieved between the organizations, contingencies need to

be built up into the system.

8.3.2.6 Step 6: Pilot Implementation

‘Piloting’ is defined as the implementation of a system in a part of an organization or

single project to allow its full impact and benefit to be evaluated before its

implementation across the whole organization and in all the projects. After the pilot

implementation and its assessment, the system design should be modified if required.

8.3.2.7 Step 7: System Implementation

Implementation will include introducing contract clauses defining ICT adoption as scope

of work of the projects and managing building projects utilizing the new system.

8.3.2.8 Step 8: Post Implementation System Monitoring

Post implementation works are summarized as under:

• System maintenance.

• Periodic evaluation of the system for measures of success, achieved benefits and

associated barriers.

This will identify requirement of further knowledge upgradation, persuasion and

decision making and will lead to:

• Vision and strategy updation

• System modification and redesign

Thus, it is a cyclic process and should be supported by users’ feedback, changing

requirements, new technological innovations and the changing stratification of the

organization staff with respect to the three categories of early adapters, normal users and

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late adapters. Durations, resource requirements and cost of each stage should be

calculated by the planners in the organization and network analysis of the project will

provide the time, resource and cost schedules for the process.

8.3.3 Framework at the Level of Construction Professionals or People

Increased ICT capability of the construction professionals or people leads to the

increased ICT capability of the industry. Thus, ‘knowledge’ of the construction

professionals for ICT adoption for building project management is required to be

enhanced. As discussed, this will be facilitated by the training initiatives at the Industry

and Organization levels.

Data analysis shows that if people perceive high benefits and low barriers of use of ICT

for project management, it will increase effective adoption of ICT for project

management. As discussed, training, education and examples of showcase projects and

proactive atmosphere in the organization are required to modify perceptions of people

and to ‘persuade’ them to increase ICT adoption for building project management. It

will lead to effective implementation of the organization level strategy. This will also be

facilitated by the training initiatives at the industry and organization levels.

But, ‘decision’ of ICT adoption for project management is taken at the organization

level. Senior managers are involved in decision making in the organization, but middle

and operational level staff are not involved in decision making and have to adopt ICT as

per the strategy of the organization. ‘Implementation’ and ‘Confirmation’ stages also do

not apply at the level of people and organization is the lowest unit on which these stages

will be applied.

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8.3.4 Discussion

The above discussion is summarized schematically in Fig. 8.5 and discussed below:

Knowledge

Persuasion

People Level Industry Level

Confirmation

Knowledge

Persuasion

Decision

Implementation

Confirmation

Knowledge

Persuasion

Decision

Implementation

Organization Level

Fig. 8.3: Schematic Diagram of Model for Strategic Diffusion of ICT in

the Indian Construction Industry for Building Project Management

Effective use of

ICT by people

Successful

implementation of

strategy at

Organization level

Successful

implementation of

strategy at Industry

level

If Strategic use of ICT is implemented at the Industry level and the Organization

level, it will lead to effective ICT adoption by the people in the project teams. This

will lead to successful implementation of Organization level strategies, further

leading to successful implementation of the Industry level strategy. Thus, it is a

cyclic process, which in totality will lead to the strategic diffusion of ICT for


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As per Roger’s diffusion theory, the speed of technology adoption is determined by two

characteristics; p, which is the speed at which adoption takes off, and q, the speed at

which the later growth occurs (Chapter 3, Sec. 3.6.1).

In this research study, with respect to adoption of new ICT tools and technologies, p is

associated with their adoption by Innovators and Early adopter organizations and q is

associated with their adoption by Early majority organizations. p and q both are

important as adoption of ICT by Innovators and Early adopters helps Early majority

organizations in assessing use of technology on early projects and preparing their

organizations for its use and its adoption. This further signifies diffusion of technology

in the industry and its use on majority of the projects.

Innovators and Early adopters have high ICT capability and readiness. But as identified

in this research, Early majority organizations require Industry level support for adoption

of new ICT tools and technologies. Thus, implementation of the model discussed above

will define q.

8.4 Summary

The ‘Strategic model for enhancing ICT diffusion in building projects’ discussed above

synthesizes the results of the literature review and data analysis conducted in this

research study. In the construction industry with multi enterprise work, a communication

system will become a protocol if it is adopted by the majority of the industry i.e. the

system and the associated technology is diffused in the industry. Thus, the model is

based on Everett Roger’s ‘Diffusions of innovations theory’. The model reflects that the

diffusion of technology in a society or industry not only includes adopting the

technology, but also includes training the people and preparing the organizations for its

effective adoption. Chapter 9 summarizes the research study.

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Chapter 9: Summary and Conclusions

CHAPTER 9

SUMMARY AND CONCLUSIONS

9.1 Introduction

This chapter summarizes and draws conclusions from the study with respect to the

research objectives identified in Chapter 1. The research study comprises study of

related literature (Chapter 2), detailed discussion of research hypotheses and research

methodology (Chapters 3, 4), empirical analysis of data (Chapters 5, 6), discussion and

finalization of the suggested ‘Benchmarking Framework’ for measuring ICT adoption

for building project management in the Indian construction industry including

methodology for measuring efficiency of organizations in implementing their strategies

and case study analysis (Chapter 7), and discussion and interpretation of quantitative and

qualitative data analysis leading to the formulation of a model for strategically

enhancing ICT diffusion for building project management (Chapter 8). This chapter

highlights the significant research contributions this study makes to the field of building

project management. Implications of the study are discussed at the levels of industry,

organization and people. Limitations of the research study are identified and the future

research scope emerging from the research study is also discussed.

9.2 Summary of Research Findings

9.2.1 Summary of Research Process

Introduction to the research topic discussed that people, who are a part of different

project team organizations, manage projects and the project team organizations are a part

of the construction industry. In an organization, top management primarily initiates

adoption of ICT, but effective adoption of ICT is still dependent on project managers

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who have the main responsibility for managing the construction projects. IT enhanced

communication protocols have to address technical, managerial, social and cultural

issues and are required to be implemented at the levels of industry, organization and

project or people.

Thus, the factors affecting ICT adoption for building project management or the research

variables were identified and analyzed at the three discussed levels. A hybrid

methodology utilizing the symbiotic relationship between quantitative and qualitative

studies was utilized. Saunders et al. (2000) have suggested that it is often beneficial to

use a mixed methods approach by combining quantitative and qualitative methods and to

use primary and secondary data in the same study, as it helps in using different methods

for different purposes in the study and enables triangulation to take place at the results

formulation stage.

The research focused on collecting and analyzing both quantitative and qualitative data

in the study in a sequential manner (sequential mixed methods). The research was

divided into four phases: Interpretive analysis of perceived benefits of effective ICT

adoption for building project management, conducted by ISM analysis; Questionnaire

survey data collection and empirical analysis of data including SEM analysis

(quantitative method); Semi-structured interview survey data collection and analysis

including DEA analysis (quantitative and qualitative method); and Case Studies analysis

conducted by SAP-LAP analysis (qualitative method) leading to the synthesis of the

results of the four phases. The purpose of this four-phase, sequential mixed methods

study was to start with pragmatic assumptions; obtain statistical, quantitative results

from a broad sample of organizations to analyze or study research variables at industry

and organization levels and then to follow up with selected organizations and projects to

study the research variables at the levels of organization and people. Fig. 9.1

summarizes the data collection and analysis techniques and depicts the sequential

mixed-methods approach followed in the research study.

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For the sequential mixed method strategy of this research, analysis occurred within both

the quantitative and the qualitative stages of research.

9.2.2 Summary with Respect to Research Objectives

The findings of different components of the research are synthesized with respect to the

research objectives. Accordingly, a summary of the findings reflecting upon the

achievement of the research objectives is presented here.

Eight research objectives were proposed for achieving the research aim of ‘developing

protocols for effective ICT adoption for Building Project Management by SMEs in the

Indian construction industry’. Factors affecting ICT adoption for building project

management or the research variables were identified in Chapter 2 and research

hypotheses were formulated in Chapters 3 and 4. The following section presents the

Fig. 9.1: Categorization of Data Collection and Analysis Techniques and their Relation

Quantitative/

Qualitative Analysis

Quantitative Analysis

Qualitative

Analysis

Interpretive Analysis

leading to Additional

Hypotheses

Formulation

Empirical analysis of data

• Parametric and non-

parametric statistical

analysis

• Structural Equation

Modeling (SEM)

Analysis

• Benchmarking

framework

analysis

• Data

Envelopment

Analysis

(DEA)

Case Study

Analysis

(SAP-LAP

Analysis)

Interpretive

Structural

Modeling

(ISM) Analysis

with respect to

benefits

Unstructured Data

Collection

Semi-structured Data

Collection

Structured Data

Collection

Discussions

Knowledge

Enhancement for

Research Variables

Semi-structured

interview

survey

Questionnaire

Survey

Literature Survey

and discussions

with industry

experts

Industry Level Data Organization Level Data Organization and

Project Level Data

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research objectives for reference and discusses the research study with respect to these

research objectives.

Questionnaire survey data collection and empirical analysis of data (Chapters 5 and 6)

were conducted to test the hypotheses and to study the identified factors with respect to

the research objectives. Unit of analysis for the questionnaire survey was ‘an

organization managing building projects’ and to have the true representation of the

population, those organizations were included in the sample, which were either

managing building projects after being appointed as the Project Managers or had the

authority to manage their projects if a Project Manager was not appointed formally.

Therefore three groups of organizations were included in the sample: builders including

contractors who construct and manage their projects; project management consultancy

organizations (PMCOs) which are formally appointed as project managers on building

projects; and architectural organizations which manage their own small to medium size

building projects since on many such projects, project managers are not formally

appointed. The survey was conducted across the country. Thus, data analysis studied

research variables at the organization level and could be generalized for the industry.

9.2.2.1 Research objectives (i, ii)

• To identify generic project management processes adopted by SMEs in India for


• To identify the extent of Information Communication Technologies (ICT)

adopted by SMEs for building project management.

Questionnaire survey data analysis led to the mapping of project management processes

adopted by the three groups of surveyed organizations and the extent of ICT adopted by

these organizations. Data analysis shows that all the surveyed PMCOs execute all the

identified time and cost processes. With respect to the time management processes, all

the organizations prepare ‘detailed time schedule at construction stage’, but not all the

builders and the architectural organizations prepare ‘master time schedule at design

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stage’ and ‘performance reports and variance analysis reports’. With respect to the cost

management processes, cost estimates are prepared by all the organizations, detailed

cash flow is prepared by almost all and the cost variance reports are prepared by lesser

number of organizations. It can be summarized that the maximum formal project

management processes are adopted by PMCOs and the least by the architectural

organizations. Also, there is more variability among builders for the adoption of formal


Data analysis showed that the extent of adoption of ICT for building project

management differs for the three groups of sample organizations i.e PMCOs, builders

and architectural organizations and decreases in this order. Reasons identified for the

phenomenon were the difference in the extent of formal project management processes

adopted by these groups of organizations and the difference in the use of software or

advanced tools for the individual processes. Thus, it was inferred that an organization

which adopts more formal project management processes and utilizes more advanced

software for individual processes, would have higher ICT adoption for building project

management processes.

9.2.2.2 Research Objectives (iii-v)

• To identify perceived barriers and associated enablers for IT enhanced

communication management by SMEs and to develop a model for establishing

structural relationships amongst them.

• To assess perceived industry requirements driving adoption of ICT by SMEs.

• To identify perceived benefits of ICT adoption.

Perception based data analysis was conducted for the perceived benefits, barriers,

enablers and industry drivers affecting ICT adoption for building project management.

Perceived benefits were grouped under measures of project success, effective team

management, effective use of technology and increased efficiency of the organization.

Interpretive analysis of perceived benefits conducted by ISM analysis (Chapter 4)

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showed that if use of ICT for general administration in the organization is matured,

appropriate IT tools are included in the working framework and team management

issues are planned at the earlier stages of the project, then project related benefits will be

achieved by default. Descriptive analysis (Chapter 5) showed that all the groups of

benefits are considered equally important and are interrelated. It validated results of ISM

analysis that all groups of benefits are interrelated and cannot be achieved in isolation.

Perceived barriers were studied at four levels i.e. industry, organization, projects and

technology. Identification of the perceived barriers at each level led to the identification

of perceived enablers of that level, since enablers are required to mitigate barriers and

assist in upgradation of the extent of ICT adoption (Chapter 5). Study of the relation

between groups of barriers and enablers showed that some of the industry related

barriers could also be addressed through strategic decisions taken at the project level for

administration and increasing team collaboration. Descriptive analysis of the perceived

barriers shows that available technology in terms of ICT infrastructure is found to be

primarily adequate by the organizations. But, high ranked barriers are industry related

barriers or organization related barriers and require strategic initiatives at the industry

and organization levels. Descriptive analysis of the perceived enablers shows that it is

important for the clients to include adoption of ICT in the project scope. Some of the

industry related barriers could be addressed while planning and setting up systems at the

project level. These systems are required to be set up by a team member who takes the

lead in defining the use of ICT in a project. Such a champion of the use of ICT should

also address the issues that improve team management collaboration. All project team

organizations should develop strategic plans aligning the use of ICT with their business

plans and maintaining a reliable electronic database in the organization. It is also

important that at the industry level, education and training is provided to the

construction professionals for adopting ICT.

Study of the relation between benefits and barriers led to this preposition that in any

organization adoption of ICT would be of a high level, only if low barriers and high

benefits are perceived.

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Study of the perceived industry drivers shows that increase in adoption of ICT in the

industry is significantly affected by the industry drivers (Chapter 5). Most important is

‘increased requirement of clients for more project information resulting in increased use

of ICT’. Thus, result of the study of perceived enablers is validated that it is important

for the clients to include adoption of ICT in the project scope.

9.2.2.3 Research objective (vi)

• To identify factors other than perceived enablers, barriers, benefits and industry

drivers affecting adoption of ICT.

Questionnaire survey data analysis led to the identification of 13 issues and 4 cultural

factors affecting ICT adoption for building project management by SMEs in the Indian

construction industry (Chapter 5). Benchmarking framework analysis led to the

identification of an additional trend (Chapter 7). These actions require attention at the

levels of industry, organization and people. The issues are technical, managerial and

strategic.

9.2.2.4 Research Objective (vii)

• To study the causal relationships between all the identified factors.

SEM analysis was conducted to study causal relationships between the quantifiable

research variables or factors (Chapter 6). Analysis of these causal relationships helps us

in understanding that an increased and matured use of ICT for general administration

within the organization would lead to an improved ICT infrastructure within the

organization, development of electronic databases and the staff that is confident of using

IT tools. In such a scenario, the staff would use advanced software and IT technologies

for project management processes and that would lead to increased use of ICT for

project management processes. For general administration also, ICT usage would be

enhanced if the organization is interacting more with geographically separated agencies

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and the senior management perceives that significant benefits would accrue by adoption

of ICT by the organization. All the factors are inter-related and their effect cannot be

maximized in isolation.

Mixed methods analysis approach adopted in this research study helped in establishing

causal relationships between other factors.

9.2.2.5 Research objective (viii)

• To provide a framework for increasing effective ICT adoption for Building

Project Management and suggest method of validation of the framework.

The following two frameworks have been formulated:

1. A Benchmarking framework to measure the extent of ICT adoption for building

project management (Chapter 7).

2. A model for strategic enhancement of ICT diffusion for building project

management (Chapter 8).

The benchmarking framework is a component of the strategic model and can be

administered at the levels of industry and organization. The strategic model is

formulated for implementation at the three levels of study i.e. industry, organization and

people.

Benchmarking Framework

Questionnaire survey data analysis led to the formulation of the ‘Benchmarking

framework’ and the suggested ‘Benchmarking process’. The Benchmarking process has

four iterative stages of Benchmarking and BenchMeasurement, BenchLearning,

BenchAction, and BenchMonitoring. The first two stages were discussed in detail and

administered on three organizations. A structure for the last two stages was presented in

Chapter 7.

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Semi-structured interviews were conducted in three organizations, one from each group

of the surveyed organizations. These organizations had responded for the questionnaire

survey and were high users of ICT. Interviews were conducted for the validation and

finalization of the proposed benchmarking framework and for rating the three

organizations for the extent of ICT adoption for building project management.

Benchmarking framework consists of three groups of performance or measurement

indicators and provides a framework for rating organizations at three levels: Low,

Medium and High. It also identifies gaps in practice with respect to the identified best

practice. BenchMeasurement utilizes ‘Data Envelopment Analysis’ technique for

measuring performance of the benchmarked organizations for efficiently implementing

their strategies for ICT adoption for building project management. BenchLearning

includes case study analysis conducted through SAP-LAP analysis. It identifies reasons

for gaps in practice and assesses other subjective issues. This stage also identifies

actions in response to the identified issues. These actions form a part of BenchAction.

Structure for BenchAction and BenchMonitoring was also suggested.

Benchmarking framework provided a structure for categorizing organizations as

Innovators, Early adopters, Early majority, Late majority and Laggards with respect to

the adoption of ICT for building project management.

Strategic model for enhancement of ICT diffusion for building project

management

Synthesis of the knowledge enhancement from the ongoing literature survey, and data

analysis results and their interpretation led to the proposed ‘Strategic model for

enhancement of ICT diffusion for building project management’ (Chapter 8). The model

is based on Everett Roger’s ‘Diffusions of innovations theory’. The model is discussed

as a generic framework of the five stages of Roger’s ‘Diffusions of innovations theory’

i.e Knowledge, Persuasion, Decision, Implementation and Confirmation. All five stages

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are discussed for the framework at industry and organization levels. Only two stages of

Knowledge and Persuasion are discussed for the framework at the level of construction

professionals or people. It is so because people can be provided knowledge about the use

of ICT tools and technologies. They can also be persuaded to adopt ICT through

training, education, and examples of showcase projects and through proactive

atmosphere in the organization. But, the decision about adopting ICT in construction

projects is taken at the organization level.

As per Roger’s theory, it’s a sequential process with each stage leading to the next. The

suggested model is a modification of the theory as data analysis and literature study have

identified that it would be a cyclic process with ‘confirmation’ leading to further

‘knowledge’ upgradation. It is discussed in detail in chapter 8.

The ‘Benchmarking Framework’ is a component of the final framework. It has been

validated, thus the final framework is also partially validated. The other components of

the framework are also derived from research analysis results. There is ‘inter-validation’

of results for various research components leading to ‘within-method’ triangulation.

Thus, the other components of the framework are also validated within the research

analysis. Sec. 8.3.4 also provides the method of validation of the complete framework

as: ‘If Strategic use of ICT is implemented at the Industry level and the Organization

level, it will lead to effective ICT adoption by the people in the project teams. This will

lead to successful implementation of Organization level strategies, further leading to

successful implementation of the Industry level strategy.’

9.2.3 Summary of Data Analysis

The above discussion shows that quantitative and qualitative methods of analysis were

used in conjunction to highlight their strengths and counter their weaknesses in the study

and to achieve validation of the results within the study. It included ‘within-method’

triangulation, which is aimed at checking the internal consistency of the results and

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‘across-method’ triangulation, which checks the external validity of research (Srivastava

and Teo 2006).

Fig. 9.2 shows the research process in terms of the input research constructs and the

output analysis results at each stage of the study.

Summary of the data analysis components provides a framework for measuring ICT

adoption for building project management by construction organizations. The

framework has four parameters as shown in Fig. 9.3 and discussed below.

LITERATURE REVIEW

Outputs

Benefits Management Plan

13 Issues and 4 Cultural

Factors

• 5 Industry level Issues

• 5 industry and organization

level issues

• 3 organization level issues

• 2 organization level cultural

factors

• 2 people level cultural

factors

Proposed Benchmarking

framework

(Chapter 4,5,6)

Final Benchmarking

Framework and

‘Benchmarking Process’ of

four stages

17 Gaps in Practice and 10

Trends

• 17 Gaps in Practice at

Organization Level

• 9 trends at Organization and

People level reflecting already

identified issues

• 1 additional trend at

Organizational level

Methodology for Measuring

Performance Efficiency of

Organizations for

Implementing their Strategies

(Chapter 7)

21 Actions in

response to

identified Gaps and

Trends identified at

the levels of

Organization and

People (Chapter 7)

STRATEGIC MODEL FOR ENHANCEMENT OF ICT DIFFUSION FOR BUILDING

PROJECT MANAGEMENT

(Chapter 8)

• Factors Affecting ICT

adoption for Building

Project Management

• Research Hypotheses

(Chapter 2,3,4)

Proposed

Benchmarking

Framework

17 Gaps in Practice

and 10 Trends

Fig. 9.2: Input Research Constructs and Output analysis Results at Each Stage

of Study

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• Perceived benefits and barriers: Organization’s ICT adoption would be of a

high level, only if low barriers and high benefits are perceived (Ref. Chapter 5,

Sec. 5.6.4).

• Benchmarking Rating: Benchmarking framework facilitates rating of

organizations for high, medium or low level of ICT adoption for building project

management (Ref. Chapter 7, Sec. 7.2.2).

• Data Envelopment Analysis Efficiency Score: The analysis would identify

efficiency of organizations for implementing their strategies of ICT adoption.

Most efficient organizations would have 100% efficiency score. Inputs and

outputs for the analysis are derived from the Benchmarking framework (Ref.

Chapter 7, Sec. 7.4.4).

• Categorization of Organizations for ICT adoption: Rating of organizations by

the suggested benchmarking framework leads to the categorization of

organizations under five groups of Innovators, Early Adopters, Early Majority,

Late Majority and Laggards or technically averse. This categorization is derived

from the relation between the scores of ‘Strategy for use of ICT’ indicators (MI1-

Measuring ICT

adoption for

Building Project

Management by

Construction

Organizations

Data Envelopment Analysis

Efficiency Score

100%

<100%

Perceived Benefits

and Barriers

Low

Medium

High

Benchmarking

Rating

Low

Medium

High

Categorization of

Organizations for use of ICT

Innovators

Early Adopters

Early Majority

Late Majority

Laggards/Technically Averse

Fig. 9.3: Proposed Parameters for Measuring ICT Adoption for

Building Project Management by Construction Organizations

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MI3) and the cumulative scores of ‘ICT Infrastructure Maturity and Use of ICT’

indicators (MI4-MI8) (Ref. Chapter 8, Sec. 8.2.5).

9.3 Significant Research Contributions

Bellenger and Greenberg (1978) have qualified good research as: systematic; logical i.e.

it follows a logical process of induction and deduction; empirical; and replicable i.e. the

research process can be replicated for verification, thereby building a sound basis for

decisions (Kothari 2005, p.20). The author believes that this research followed the

recommended approach and has made following significant contributions:

• As per the literature survey findings, till now such a study and survey has not

been conducted with reference to the Indian construction industry. Thus, this

study provides a direction for research in use of ICT in the Indian construction

industry.

• Interpretive Structural Modeling analysis provides a roadmap for the project

managers for benefits management plan with respect to ICT adoption i.e. a

roadmap to decide that if they are planning ICT adoption for achieving certain

benefits then what are the other driving benefits that should be achieved prior to

that and also what are the dependent benefits that would be achieved by default.

• Questionnaire survey data analysis provides a mapping of Indian construction

industry for the use of formal project management processes, of IT tools for

these processes, and of ICT for communicating information for these processes.

It also provides mapping of the perceptions of senior construction executives for

benefits, barriers, enablers and industry drivers for effective ICT adoption for


• Structural Equation Modeling analysis of causal relationships between factors

affecting ICT adoption for building project management provides a macro level

perspective to the analysis in place of a micro-level one. It also shows that the

perception based factors are as important as quantitative factors.

• The suggested Benchmarking process provides a system for measuring the extent

of ICT adoption for building project management by SMEs in the Indian

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construction industry. It can be utilized at the industry level to map the

stratification of construction industry for ICT adoption for building project

management and also at the organization level by construction organizations for

self-analysis and identification of improvement opportunities. It is a generic

process and can be customized for other countries with due considerations.

• Data Envelopment Analysis shows that strategy formulation is as important as

effective implementation of strategies.

• Results or the ‘Strategic model for enhancement of ICT diffusion for building

project management’ suggested at the levels of Industry, Organization and

People is a generic model and can be adopted for other countries.

• Multiple analysis techniques provide triangulation of the analysis results, leading

to the validation of results, thus, providing credence to the results.

• Research study establishes the relevance of using statistical techniques for

construction industry research.

• This research provides parameters for recalibration of the benchmarking

framework and recalibration of results.

• While the research was conducted in an Indian context, the research outcome is

envisaged to be widely applicable in other countries. Factors affecting ICT

adoption for building project management or the research variables were

identified after extensive literature survey. Thus, these research variables could

be generalized for other countries with due considerations, specifically for

countries where the construction industry is similar to Indian construction

industry in terms of working methodologies, and social and cultural factors or for

large countries like Australia. Data collection instruments like questionnaire

survey and proposed benchmarking framework have a generic structure and can

be customized for other countries. Similarly the proposed benchmarking

framework and the results have a generic structure. Thus, even though the

research has been conducted for Indian construction industry, it can be

generalized and applied for other countries with due considerations.

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9.4 Implications and Relevant Research Audience

Research identified factors affecting ICT adoption for building project management at

the levels of Industry, Organization and People. The study of these factors and study of

the causal relationships between these factors identified that the results are also required

to be formulated at these three levels. Thus, implications of this research are also

discussed at these three levels.

9.4.1 Implications for National level bodies and Academic Institutions

The research provides a reference study to the national level bodies in the Indian

construction industry for conducting more such surveys and studies across the country

for increasing ICT adoption in the industry. Suggested Benchmarking process is a tool

that can be administered by the national level bodies for rating construction

organizations for ICT adoption for building project management. BenchMeasurement

and BenchLearning stages would further help in identifying reasons for low ICT

adoption and for suggesting methods or actions for improvement. Parallel industry

benchmarking conducted with an industry having similar work practices would bring

innovation in use of ICT in the construction industry.

Results or the ‘Strategic model for enhancing ICT diffusion‘ discussed at the industry

level incorporates the suggested benchmarking process and provides step-by-step

approach to the national bodies for formulating and implementing strategies for

increasing ICT adoption in the industry.

This research study has been conducted as a part of the academic research and provides

results that can be applied in the industry. Thus, it implies that academic institutions and

national level bodies should work in tandem and not in an isolated manner. Practical

requirements of the industry should be studied and analyzed through the academic

research projects so as to benefit from the theoretical knowledge base of the

academicians with respect to the technical industry requirements and relevant statistical

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analysis tools. This research provides a framework to academic institutions to study ICT

adoption in the construction industry and to apply results in the industry.

9.4.2 Implications for Construction Organizations

Interpretive Structural Modeling analysis provides a roadmap for the project managers

for benefits management plan with respect to ICT adoption i.e. a roadmap to decide that

if they are planning use of ICT for achieving certain benefits then what are the other

driving benefits that should be achieved prior to that and also what are the dependent

benefits that would be achieved by default.

Also, the suggested Benchmarking framework is a tool that can be used by organizations

for rating themselves for ICT adoption for building project management. Results

formulated at the organization level provide a framework for organizations to achieve

strategic ICT adoption. It incorporates technical, managerial as well as human resource

or people related issues.

The results show that an organization is an important unit of construction industry and

strategies at the organization level can determine the level of ICT adoption by their

people or staff. Two important issues highlighted at this level are the top down approach

of training executives for the use of ICT and the proactive approach at the organizations

so that their executives perceive maximum benefits and minimum barriers for effective

ICT adoption.

9.4.3 Implications for People or Project Managers

Results at the level of people indicate that knowledge upgradation or training of the

executives is an important factor and people should always strive for training for higher

ICT tools and should try to overcome the people level cultural factors identified in the

data analysis.

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9.4.4 Implications at International Level

The research has been conducted with respect to the Indian construction industry. But,

the identified research issues are applicable globally. Also, as per the literature review,

globally, majority of the construction organizations are SMEs. Thus, the research results

can be generalized for other countries after due considerations as discussed above (Sec.

9.3).

9.5 Limitations of the Research Study

9.5.1 Limitations with respect to the Questionnaire Survey and Data Analysis

Following limitations were faced during the study:

• India is a large country with a lot of diversity in terms of working methodologies,

and social and cultural issues. A bigger sample size covering all the parts of the

country would have brought more insight into the issues covered in the present

research, had this been feasible for this specific approach.

• Sample size of the survey could have been larger. But, the concept of secrecy

seems to be sacrosanct to the construction organizations in the country so much

so that it proves to be an impermeable barrier to researchers. The survey did not

require any financial or commercial information, but many organizations did not

respond, as they did not want to divulge any information about the organization.

9.5.2 Limitations with respect to the Benchmarking Framework Analysis

In the Benchmarking framework analysis, following limitations were felt due to the

research time limitations and deserve further investigation in future research:

• Implementation of the Benchmarking framework for a larger number of

organizations has not been conducted.

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• Parallel industry benchmarking has been defined in the research study. But, an

industry with similar work practices has not been identified for parallel industry

benchmarking.

9.6 Recommendations for Future Research

• Surveys should be conducted in all regions of India, including smaller townships

where at present many construction activities are happening. This would bring

further insights to the research problem.

• The study should be combined with the study of behavioral sciences in use of

ICT. This would help in further study of cultural and social factors.

• The study should be combined with the study of procurement issues. This would

help in identifying required contract clauses and other contractual issues required

for incorporating use of ICT in project scope.

• Further research should identify an industry with similar work methodologies

and project management processes for comparison between ICT adoption by

SMEs of both the industries. It would facilitate ‘parallel industry or generic

benchmarking’ and would further facilitate innovation in ICT adoption by SMEs

in the construction industry.

• The research framework used can apply for research in the construction

industries of other countries, specifically for countries where the construction

industry is similar to the Indian construction industry in terms of working

methodologies, and social and cultural factors or for large countries like

Australia. It would lead to further application of the research knowledge gained

in this research.

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9.7 Summary

The aim of this research was to identify IT enhanced communication protocols for

adoption of ICT for building project management by SMEs in the Indian construction

industry. The research work has enabled the examination of causal relationships between

research variables. Multiple analysis techniques provide triangulation of analysis results,

leading to validation of results. This chapter summarizes the major findings leading to a

discussion of the significant research contributions, the implication of research for

industry practitioners as well as for academicians, and the limitations of research. Areas

for further research are suggested to close the gaps and to keep enriching the research.

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Appendix A: Questionnaire Survey

APPENDIX - A

QUESTIONNAIRE SURVEY

The questionnaire seeks to assess the extent of Information and communication technology

(ICT) adoption by construction organizations in the Indian construction industry for Building

Project Management and to assess their perceptions about benefits and barriers of effective

adoption of ICT and enablers that would lead to increased adoption of ICT in the Indian

construction industry. In the questionnaire office means head office of the organization.

The Questionnaire is divided into 4 Sections.

SECTION I: Organization Assessment

SECTION II: Tools Used for Generic Building Project Management Processes and

Communication Methods Adopted for these Processes

SECTION III: Industry Perceptions

SECTION IV: Respondent’s Profile

You are requested to give your response for all the sections. You are invited to add your

comments. Kindly let us know if you wish to receive a summary of the final results of the

survey. Individual responses would be kept confidential and only summaries would be

published.

SECTION I - ORGANIZATION ASSESSMENT

Kindly tick the correct answers and specify more information where required.

1. ASSESSMENT OF ORGANIZATION STRUCTURE AND SIZE

i. No. of office staff

0-15 16-30 31-45 46-60 more than 60

ii. No. of staff at project sites

0-15 15-30 31-45 46-60 more than 60

iii Turnover of the organization in Indian Rupees

Upto 2 crores 2 - 4 crores 4 – 6 crores 6 – 8 crores more then 8 crores

iv. Rate of increase of turnover in last 5 years

No increase 0-5% 5%-10% 10%-15% more then 15%

2. ASSESSMENT OF ORGANIZATION’S AREA OF EXPERTISE i. No. of building projects managed/executed as the main agency in last 5 years

0-5 6-10 11-15 16-20 more than 20

ii. No. of building projects managed/executed in last 5 years as sub-contractors/agency of

larger organizations

0-5 6-10 11-15 16-20 more than 20

iii. Executing majority of the projects as:

Architects �

Project Managers �

Contractors �

Sub-contractors �

__________________________________________________________________________________

Page 346


3. ASSESSMENT OF INTERACTION OF THE ORGANIZATION WITH

AGENCIES GEOGRAPHICALLY SEPARATED WITHIN INDIA AND

OVERSEAS i. No. of projects on which the organization has interacted with agencies geographically

separated within India - in last 5 years

0-5 6-10 11-15 16-20 more than 20

ii. No. of projects on which the organization has interacted with overseas agencies - in last

5 years

0 Upto 5 6-10 11-15 more than 15

4. ASSESSMENT OF ICT MATURITY OF THE STAFF AND THE

ORGANIZATION i. Percentage of office staff with access to computer

0 – 20% 20%-40% 40%-60% 60%-80% More than 80%

ii. Percentage of project site staff with access to computer

0 – 20% 20%-40% 40%-60% 60%-80% More than 80%

iii. Rate of increase of use of IT based communication in last 5 years

0 – 20% 20%-40% 40%-60% 60%-80% More than 80%

iv. Key software used in the office:

System software MS Office � Any other (specify) ______

Word Processing software MS Word � Any other (specify) ______

Spreadsheet software MS Excel � Any other (specify) ______

DBMS software MS Access � Any other (specify) ______

Adobe Acrobat Reader (pdf) (Yes/No)

v. IT infrastructure provided at site:

System software MS Office � Any other (specify) ______

Word Processing software MS Word � Any other (specify) ______

Spreadsheet software MS Excel � Any other (specify) ______

DBMS software MS Access � Any other (specify) ______

Adobe Acrobat Reader (pdf) (Yes/No)

Internet connection (Yes/No)

vi. All the computers within office are connected through LAN (Yes/No)

vii. Computers at project site offices are connected with computers at office through the

Intranet (Yes/No)

viii. Are there any capacity, functionality or performance issues which need to be addressed

for office computer systems? (Yes/No)

If Yes, specify ___________________________________________________

ix. Are there any capacity, functionality or performance issues which need to be addressed

for project site office computer systems? (Yes/No)

If Yes, specify ___________________________________________________

x. Most common means of communicating electronic information:

COMMUNICATION BETWEEN OFFICE AND SITE

Physical transfer of floppies/CDs etc. �

Combination of 1st and 3

rd option �

Via Internet/Intranet �

COMMUNICATION BETWEEN OFFICE AND OTHER AGENCIES

Physical transfer of floppies/CDs etc. �

Combination of 1st and 3

rd option �

Via Extranet/Internet �

xi. Centralized database in the organization (Yes/No)

__________________________________________________________________________________

Page 347


xii. System for keeping backup of electronic data

A separate hard disk

in the same computer

External hard

disk

CDs or other

storage disks

Combination of all

options

xiii. Have a communication management strategy within the organization (Yes/No)

xiv. Have a disaster recovery plan in case of failure or breakdown of IT infrastructure

(Yes/No)

If Yes, specify the plan:

_____________________________________________________________

xv. Extent of ICT adoption varies between different projects (Yes/No)

If Yes, it is mainly due to:

a. Variable ICT capability of associating project team organizations on projects

0 – 20% 20%-40% 40%-60% 60%-80% More than 80%

b. Variable requirement of client for use of ICT on projects

0 – 20% 20%-40% 40%-60% 60%-80% More than 80%

xvi Portable technology being utilized for project management

(mobile phone / mobile internet / Radio frequency identification device (RFID) for

material management)

xvii Project web sites are being utilized for project management (Yes/No)

5. MODE OF COMMUNICATION ADOPTED FOR GENERAL ADMINISTRATION (tick the correct option in each box)

Hard copy

documents

Intranet e-mail e-mail followed

by a phone call

Information

flow within the

organization

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Yes/No 0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Information

flow between

office and

project sites

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Yes/No 0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Inter

organization

Information

Flow

Hard copy

documents

Extranet e-mail e-mail followed

by a phone call

Between office

and clients

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Yes/No 0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Between office

and consultants

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Yes/No 0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Between office

and

contractors/mat

erial suppliers

0-20%

20%-40%

40%-60%

60%-80%

Yes/No

__________________________________________________________________________________

Page 348


and other

external

agencies

80%-100%

Between project

site office and

other agencies

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Yes/No 0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

Personal

meetings

Teleconference Videoconference

Meetings between office

and site staff

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0

upto 25%

25%-50%

50%-75%

75%-100%

Yes/No


and clients

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0

upto 25%

25%-50%

50%-75%

75%-100%

Yes/No


and consultants

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0

upto 25%

25%-50%

50%-75%

75%-100%

Yes/No


and contractors/material

suppliers and other

external agencies

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0

upto 25%

25%-50%

50%-75%

75%-100%

Yes/No

Joint meetings with clients,

consultants and other

agencies

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0

upto 25%

25%-50%

50%-75%

75%-100%

Yes/No

Hard copy

documents

Through

Internet

Accessing external

information for

reference

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

0-20%

20%-40%

40%-60%

60%-80%

80%-100%

SE

CT

ION

II-

T

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UIL

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in

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xec

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r org

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on

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ck o

ut

wh

ich

ever

is

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cable

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viati

on

s are

det

ail

ed

at

the

start

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each

ta

ble

. W

her

ever

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on

is

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ose

n,

ple

ase

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ecif

y.

For

each

%

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tools

an

d

com

mu

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on

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use

d t

he

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on

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be

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ed. A

sam

ple

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or

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SA

MP

LE

•

If ‘

Mas

ter

Tim

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at

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tage’

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pre

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our

off

ice

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Yes

‘ i

n b

ox I

.

•

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it i

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nly

for

20%

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pro

ject

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20%

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’ in

box I

.

•

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the

tim

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S P

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s use

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pre

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80%

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l. A

ccord

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I.

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hin

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this

sch

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pri

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lick

as

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n i

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I.

Co

mm

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s u

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fo

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ss

Pro

cess

es

Pre

pa

red

I

To

ol(

s) u

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fo

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II

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III

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ff

IV

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nsu

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at.

sup

pli

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an

d o

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ag

enci

es

VI

1.

Ma

ster

ti

me

sch

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at

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Yes

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man

y p

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0%

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2

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%

40

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0%

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80

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%

√ √√√

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E

x/M

SP

/P3

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20

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E

x/M

SP

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40

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0%

E

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SP

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60

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0%

E

x/M

SP

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√ √√√

80

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% E

x/M

SP

/P3

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0-2

0%

H/e

20

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0%

H

/e

40

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0%

H

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60

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0%

H

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√ √√√

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% H

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0-2

0%

H/e

20

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H

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40

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0%

H

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60

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H

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√ √√√

80

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0-2

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H/e

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√ √√√

20

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H

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H/e

40

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H

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H/e

√ √√√

6

0%

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80

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H/e

0-2

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/e

20

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0%

H

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H/e

40

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0%

H

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H/e

60

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0%

H

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H/e

√ √√√

80

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00

% H

/e+

H/e

TIM

E M

AN

AG

EM

EN

T

To

ols

use

d a

nd

ab

bre

via

tion

s: M

S W

ord

(W

), M

S E

xce

l (E

x),

MS

Pro

ject

(M

SP

), P

rim

avera

Pro

ject

Pla

nner

(P

3),

An

y o

ther

, sp

ecif

y (

O)

Co

mm

un

ica

tio

n m

eth

od

s u

sed a

nd

ab

bre

via

tio

ns:

Har

d c

op

y (

H),

e-m

ail

(e),

e-m

ail

and

hard

co

py (

e+H

)

Co

mm

un

ica

tio

n m

eth

od

s u

sed

fo

r th

e p

roce

ss

Pro

cess

es

Pre

pa

red

T

oo

l(s)

use

d f

or

the

pro

cess

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hin

th

e

off

ice

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wee

n o

ffic

e

an

d s

ite

sta

ff

Bet

wee

n

Off

ice

an

d

Cli

ents

/Co

nsu

lta

nt

s

Bet

wee

n

Off

ice

an

d

Co

nts

./m

at.

su

pp

lier

s

an

d o

ther

ag

enci

es

1.

Ma

ster

ti

me

sch

edu

le

at

des

ign

sta

ge

Yes

/No

If Y

es,

on h

ow

man

y p

rojs

.?

0-2

0%

20

%-4

0%

40

%-6

0%

60

%-8

0%

80

%-1

00

%

0-2

0%

Ex/M

SP

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20

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0%

E

x/M

SP

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40

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0%

E

x/M

SP

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60

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0%

E

x/M

SP

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80

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00

% E

x/M

SP

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0-2

0%

H/e

20

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0%

H

/e

40

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0%

H

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60

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0%

H

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0

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H

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20

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H

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40

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0%

H

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60

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80

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00

% H

/e+

H/e

2.

Det

ail

ed

tim

e

sch

edu

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of

wo

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at

con

stru

ctio

n

sta

ge

Yes

/No

If Y

es,

on h

ow

man

y p

rojs

.?

0-2

0%

20

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0%

40

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0%

60

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0%

80

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00

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0-2

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Ex/M

SP

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40

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60

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80

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00

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x/M

SP

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0-2

0%

H/e

20

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0%

H

/e

40

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0%

H

/e

60

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0%

H

/e

80

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00

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/e

0-2

0%

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20

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0%

H

/e

40

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0%

H

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60

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H

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80

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00

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0-2

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20

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0%

H

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40

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H

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60

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0%

H

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80

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00

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H

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40

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H

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60

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0%

H

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80

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00

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/e+

H/e

3.

Up

da

ted

con

stru

ctio

n

sta

ge

tim

e

sch

edu

les

Yes

/No

If Y

es,

on h

ow

man

y p

rojs

.?

0-2

0%

20

%-4

0%

40

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0%

60

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0%

80

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00

%

0-2

0%

Ex/M

SP

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20

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0%

E

x/M

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40

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60

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0%

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80

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20

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H

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40

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0%

H

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60

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0%

H

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80

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00

% H

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0-2

0%

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20

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0%

H

/e

40

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0%

H

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60

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0%

H

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80

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00

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0-2

0%

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20

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0%

H

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40

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0%

H

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H/e

60

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0%

H

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80

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00

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0-2

0%

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20

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0%

H

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40

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0%

H

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H/e

60

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0%

H

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H/e

80

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00

% H

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H/e

Co

mm

un

ica

tio

n m

eth

od

s u

sed

fo

r th

e p

roce

ss

Pro

cess

es

Pre

pa

red

T

oo

l(s)

u

sed

fo

r th

e

pro

cess

W

ith

in

the

off

ice

Bet

wee

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ffic

e

an

d s

ite

sta

ff

Bet

wee

n

Off

ice

an

d

Cli

ents

/Co

nsu

lta

nt

s

Bet

wee

n

Off

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an

d

Co

nts

./m

at.

su

pp

lier

s

an

d o

ther

ag

enci

es

4.

Pro

ject

per

form

an

ce

rep

ort

s fo

r ti

me

sch

edu

les

Yes

/No

If Y

es,

on h

ow

man

y p

rojs

.?

0-2

0%

20

%-4

0%

40

%-6

0%

60

%-8

0%

80

%-1

00

%

0-2

0%

Ex/M

SP

/P3

/O

20

%-4

0%

E

x/M

SP

/P3

/O

40

%-6

0%

E

x/M

SP

/P3

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60

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0%

E

x/M

SP

/P3

/O

80

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00

% E

x/M

SP

/P3

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0-2

0%

H/e

20

%-4

0%

H

/e

40

%-6

0%

H

/e

60

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0%

H

/e

80

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00

% H

/e

0-2

0%

H/e

20

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0%

H

/e

40

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0%

H

/e

60

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0%

H

/e

80

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00

% H

/e

0-2

0%

H/e

+H

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20

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0%

H

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H/e

40

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0%

H

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H/e

60

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0%

H

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H/e

80

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00

% H

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H/e

0-2

0%

H/e

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20

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0%

H

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H/e

40

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0%

H

/e+

H/e

60

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0%

H

/e+

H/e

80

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00

% H

/e+

H/e

5.

Va

ria

nce

an

aly

sis

rep

ort

s

for

tim

e

sch

edu

les

Yes

/No

If Y

es,

on h

ow

man

y p

rojs

.?

0-2

0%

20

%-4

0%

40

%-6

0%

60

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0%

80

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00

%

0-2

0%

Ex/M

SP

/P3

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20

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0%

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x/M

SP

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40

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0%

E

x/M

SP

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60

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0%

E

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80

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00

% E

x/M

SP

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0-2

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H/e

20

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0%

H

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40

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0%

H

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60

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0%

H

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80

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00

% H

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0-2

0%

H/e

20

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0%

H

/e

40

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H

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60

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0%

H

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80

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00

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0-2

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20

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0%

H

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40

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0%

H

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H/e

60

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0%

H

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80

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00

% H

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H/e

0-2

0%

H/e

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20

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0%

H

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H/e

40

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0%

H

/e+

H/e

60

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0%

H

/e+

H/e

80

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00

% H

/e+

H/e

CO

ST

MA

NA

GE

ME

NT

To

ols

use

d a

nd

ab

bre

via

tion

s: M

S W

ord

(W

), M

S E

xce

l (E

x),

MS

Pro

ject

(M

SP

), P

rim

avera

Pro

ject

Pla

nner

(P

3),

An

y o

ther

, sp

ecif

y (

O)

Co

mm

un

ica

tio

n m

eth

od

s u

sed a

nd

ab

bre

via

tio

ns:

Har

d c

op

y (

H),

e-m

ail

(e),

e-m

ail

and

hard

co

py (

e+H

)

Co

mm

un

ica

tio

n m

eth

od

s u

sed

fo

r th

e p

roce

ss

Pro

cess

es

Pre

pa

red

T

oo

l(s)

use

d f

or

the

pro

cess

Wit

hin

th

e

off

ice

Bet

wee

n o

ffic

e

an

d s

ite

sta

ff

Bet

wee

n

Off

ice

an

d

Cli

ents

/Co

nsu

lta

nt

s

Bet

wee

n

Off

ice

an

d

Co

nts

./m

at.

su

pp

lier

s

an

d o

ther

ag

enci

es

1.

Co

st e

stim

ate

s

for

the

pro

ject

Yes

/No

If Y

es,

on h

ow

man

y p

rojs

.?

0-2

0%

20

%-4

0%

40

%-6

0%

60

%-8

0%

80

%-1

00

%

0-2

0%

Ex/M

SP

/P3

/O

20

%-4

0%

E

x/M

SP

/P3

/O

40

%-6

0%

E

x/M

SP

/P3

/O

60

%-8

0%

E

x/M

SP

/P3

/O

80

%-1

00

% E

x/M

SP

/P3

/O

0-2

0%

H/e

20

%-4

0%

H

/e

40

%-6

0%

H

/e

60

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0%

H

/e

80

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00

% H

/e

0

-20

%

H

/e+

H/e

20

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0%

H

/e+

H/e

40

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0%

H

/e+

H/e

60

%-8

0%

H

/e+

H/e

80

%-1

00

% H

/e+

H/e

2.

Det

ail

ed

Co

st

sch

edu

le/c

ash

flo

w

for

the

pro

ject

Yes

/No

If

Yes

, o

n h

ow

man

y p

rojs

.?

0-2

0%

20

%-4

0%

40

%-6

0%

60

%-8

0%

80

%-1

00

%

0-2

0%

Ex/M

SP

/P3

/O

20

%-4

0%

E

x/M

SP

/P3

/O

40

%-6

0%

E

x/M

SP

/P3

/O

60

%-8

0%

E

x/M

SP

/P3

/O

80

%-1

00

% E

x/M

SP

/P3

/O

0-2

0%

H/e

20

%-4

0%

H

/e

40

%-6

0%

H

/e

60

%-8

0%

H

/e

80

%-1

00

% H

/e

0-2

0%

H/e

20

%-4

0%

H

/e

40

%-6

0%

H

/e

60

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0%

H

/e

80

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00

% H

/e

0-2

0%

H/e

+H

/e

20

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0%

H

/e+

H/e

40

%-6

0%

H

/e+

H/e

60

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0%

H

/e+

H/e

80

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00

% H

/e+

H/e

0-2

0%

H/e

+H

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20

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0%

H

/e+

H/e

40

%-6

0%

H

/e+

H/e

60

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0%

H

/e+

H/e

80

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00

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3.

Co

st v

ari

an

ce

rep

ort

s

Yes

/No

If

Yes

, o

n h

ow

man

y p

rojs

.?

0-2

0%

20

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0%

40

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0%

60

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0%

80

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0-2

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20

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x/M

SP

/P3

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40

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x/M

SP

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60

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E

x/M

SP

/P3

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80

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00

% E

x/M

SP

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0-2

0%

H/e

20

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H

/e

40

%-6

0%

H

/e

60

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0%

H

/e

80

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00

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/e

0-2

0%

H/e

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H

/e

40

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0%

H

/e

60

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0%

H

/e

80

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00

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/e

0-2

0%

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20

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0%

H

/e+

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H

/e+

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60

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H

/e+

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80

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/e+

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0-2

0%

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20

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0%

H

/e+

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/e+

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/e+

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/e+

H/e

P

RO

JE

CT

AD

MIN

IST

RA

TIO

N A

ND

RE

SO

UR

CE

MA

NA

GE

ME

NT

To

ols

use

d a

nd

ab

bre

via

tion

s: M

anual

(M

), M

S W

ord

(W

), M

S E

xce

l (E

x),

3-D

wal

kth

roug

hs

(3D

wal

kth

ru),

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er V

isuli

sati

on t

echn

iques

(Vis

ual

stn),

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ne

pro

duct

dat

abas

es (

Onli

ne)

,Bar

Co

din

g (

Bar

C),

An

y o

ther

, sp

ecif

y (

O)

Co

mm

un

ica

tio

n m

eth

od

s u

sed a

nd

ab

bre

via

tio

ns:

Har

d c

op

y (

H),

Extr

anet

(E

xtr

a),

e-m

ail

(e),

e-m

ail

and

har

d c

op

y (

E+

H),

Per

sonal

mee

tin

gs

(Prs

nlM

tng),

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eco

nfe

renci

ng (

Tel

Co

n),

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eoco

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ng (

Vco

n),

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y o

ther

, sp

ecif

y (

O)

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cess

es

To

ol(

s)

use

d

for

the

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cess

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an

d

thei

r

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nic

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on

met

ho

d

1.

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ing

bid

s fo

r th

e p

roje

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ork

0

-20

%

H

/e+

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20

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0%

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40

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0%

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+H

/e

60

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00

%

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2.

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nd

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s fo

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g p

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ct s

taff

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%

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tng /

Tel

Co

n/V

Co

n

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Tel

Co

n/V

Co

n

40

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n/V

Co

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60

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Co

n/V

Co

n

80

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00

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nlM

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Co

n/V

Co

n

3. M

eeti

ng

s fo

r re

vie

w o

f d

esig

n i

nfo

rm

ati

on

/do

cum

ents

– T

oo

ls u

sed

0

-20

%

H

/3D

wal

kth

ru /

Vis

uals

tn

20

%-4

0%

H

/3D

wal

kth

ru /

Vis

ual

stn

40

%-6

0%

H

/3D

wal

kth

ru /

Vis

ual

stn

60

%-8

0%

H

/3D

wal

kth

ru /

Vis

ual

stn

80

%-1

00

%

H

/3D

wal

kth

ru /

Vis

ual

stn

4.

Mee

tin

gs

for

rev

iew

of

des

ign

in

form

ati

on

/do

cum

ents

– c

om

mu

nic

ati

on

met

ho

d

use

d

0-2

0%

P

rsnlM

tng /

Tel

Co

n/V

Co

n

20

%-4

0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

40

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0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

60

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0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

80

%-1

00

%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

5.

Des

ign

ch

an

ges

by

dif

fere

nt

con

sult

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ts c

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d t

o c

on

sult

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ts a

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ents

0-2

0%

H

/e+

H/e

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xtr

a

20

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H

/e+

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/ E

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a

40

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a

60

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H

/e+

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/ E

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a

80

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00

%

H

/e+

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a

6.

Bil

l O

f Q

ua

nti

ties

pre

pa

rati

on

0

-20

%

M

/W/E

x/O

20

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/W/E

x/O

40

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0%

M

/W/E

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60

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0%

M

/W/E

x/O

80

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00

%

M

/W/E

x/O

7.

Ten

der

pre

pa

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on

0

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%

M

/W/O

20

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0%

M

/W/O

40

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0%

M

/W/O

60

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0%

M

/W/O

80

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00

%

M

/W/O

8.

Co

mp

ara

tiv

e a

na

lysi

s o

f b

ids

rece

ived

0

-20

%

M

/W/E

x/O

20

%-4

0%

M

/W/E

x/O

40

%-6

0%

M

/W/E

x/O

60

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0%

M

/W/E

x/O

80

%-1

00

%

M

/W/E

x/O

9.

Ten

der

mee

tin

gs

an

d n

ego

tia

tio

ns

0-2

0%

P

rsnlM

tng

/Tel

Co

n/V

Co

n

20

%-4

0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

40

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0%

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Tel

Co

n/V

Co

n

60

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0%

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nlM

tng /

Tel

Co

n/V

Co

n

80

%-1

00

%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

10

. R

efer

rin

g i

nfo

rma

tio

n r

eg

ard

ing

ma

teri

als

0

-20

%

H

/Onli

ne

20

%-4

0%

H

/Onli

ne

40

%-6

0%

H

/Onli

ne

60

%-8

0%

H

/Onli

ne

80

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00

%

H

/Onli

ne

11

. M

eeti

ng

s w

ith

ma

teri

al

sup

pli

ers

0

-20

%

P

rsnlM

tng

/Tel

Co

n/V

Co

n

20

%-4

0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

40

%-6

0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

60

%-8

0%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

80

%-1

00

%

Prs

nlM

tng /

Tel

Co

n/V

Co

n

12

. P

urc

ha

se o

rder

s p

rep

ara

tio

n a

nd

ma

na

gem

en

t 0

-20

%

M

/W/E

x/O

20

%-4

0%

M

/W/E

x/O

40

%-6

0%

M

/W/E

x/O

60

%-8

0%

M

/W/E

x/O

80

%-1

00

%

M

/W/E

x/O

13

. M

ate

ria

ls m

an

ag

em

ent

reco

rds

ma

inta

ined

at

site

0

-20

%

M

/W/E

x/B

arc

20

%-4

0%

M

/W/E

x/B

arc

40

%-6

0%

M

/W/E

x/B

arc

60

%-8

0%

M

/W/E

x/B

arc

80

%-1

00

%

M

/W/E

x/B

arc

14

. M

an

po

wer

res

ou

rce

ma

na

gem

ent

reco

rds

ma

inta

ined

at

site

0

-20

%

M

/W/E

x/O

20

%-4

0%

M

/W/E

x/O

40

%-6

0%

M

/W/E

x/O

60

%-8

0%

M

/W/E

x/O

80

%-1

00

%

M

/W/E

x/O

15

. R

isk

ass

essm

ent

an

d m

an

ag

em

ent

Y

es/N

o

16

. M

ain

ten

an

ce m

an

ua

l p

rep

ara

tio

n

Yes

/No

17

. P

rep

ara

tio

n o

f a

s-b

uil

t d

raw

ing

s a

nd

do

cum

en

ts

Yes

/No

__________________________________________________________________________________

Page 356

Appendix A

COMMUNICATION MANAGEMENT

i. Assessment of processes executed at the start of the project

• Planning for the specified formats of reports to be generated throughout the project

execution (Yes/No)

• Planning for the periodicity at which reports are to be generated during project

execution (Yes/No)

• Planning for the periodicity at which meetings are to be held during project execution

(Yes/No)

ii. Method of information storage:

Method of storing the following at office (tick out whichever is applicable):

Documents H H+Elec Elec

Drawings/design details H H+Elec Elec

Time Schedules H H+Elec Elec

Cost Schedules H H+Elec Elec

Method of storing the following at project site offices

Documents H H+Elec Elec

Drawings/design details H H+Elec Elec

Time Schedules H H+Elec Elec

Cost Schedules H H+Elec Elec

Storage methods and abbreviations: Hard Copy (H), Hard copy as backup for electronic storage (H+Elec),

Electronic storage only (Elec)

__________________________________________________________________________________

Page 357

Appendix A

SECTION III - INDUSTRY PERCEPTIONS

From the list of identified barriers, benefits, enablers for effective adoption of ICT in the

Indian construction industry and the perceived industry drivers, tick which you feel are

applicable and allocate their importance at the scale of 1-5. 1 is not important and 5 is most

important.

1. BARRIERS FOR EFFECTIVE ADOPTION OF ICT

Specify any other barrier (if required) and rate its importance.

No

t Im

po

rta

nt

(1)

(2)

Mo

der

ate

ly

Imp

ort

an

t (3

)

(4)

Mo

st I

mp

ort

an

t (5

)

Technology Related Barriers

i. Non-dependability of IT Infrastructure

ii. Security of data

iii. Information overflow because of use of Internet as a

communication tool

iv. Lack of technical standards for communication

interface between different software

Projects Related Barriers

v. Uniqueness of each construction project

vi. Inadequate ICT support to construction sites

Organizations Related Barriers

vii. Initial cost of ICT infrastructure installation

viii. Cost of keeping up to date with the technological

developments in hardware/software

ix. Cost of training the staff for technological

developments in hardware/software or hiring new staff

for the updated technology

x. Uncertainty of benefit from use of IT based

communication

xi. Senior construction professionals unwilling to adopt

ICT

xii. High staff turnover in construction organizations

Industry Related Barriers

xiii. The separation of the process of design, construction

and operation and maintenance of buildings

xiv. Non-availability of critical mass of

organizations/projects in the industry that adopt ICT

xv. Fragmented construction industry having several

different organizations big and small, having different

set of requirements and different level of ICT

knowledge

xvi. The construction industry does not work on absolute

standards or is not dominated by one strong leader, as

is the case like IBM in computers or Ford in

__________________________________________________________________________________

Page 358

Appendix A

automobiles.

xvii. Lack of strategic direction within the industry in terms

of standards and protocols that would inform any ICT

investment decision

xviii. Poor supply-chain management of contractors, sub-

contractors, specialists and suppliers in the


xix.

2. PERCEIVED BENEFITS OF IT BASED COMMUNICATION

Specify any other benefit (if required) and rate its importance.

No

t Im

po

rta

nt

(1)

(2)

Mo

der

ate

ly

Imp

ort

an

t (3

)

(4)

Mo

st I

mp

ort

an

t (5

)

Benefits related to measures of Project Success

i Project completion as per the estimated time

ii Project completion as per the estimated budget

iii Project completion as per the specifications

iv Life cycle concept becomes a competitive factor

v Project information obtained in real time

vi Richer information made available to managers

vii Less time spent in query and approval process

viii Effective change management

ix Reduced risk of errors and rework on projects

x Effective concurrent construction management

xi A complete log of all communications maintained for

tracking purposes

xii Effective material procurement and management

xiii Effective contract management

xiv “One-source” documentation archive maintained for

clients

xv Client satisfaction

xvi Reduced administrative costs of document handling

and distribution to multiple parties

xvii Project managers spend more time on managerial work

Benefits Related to Effective Team Management

xviii Effective collaboration and coordination between

project team members

xix Effective communication management between project

team members

xx Greater management control

xxi Effective joint decision making

xxii Motivation of the workforce

Benefits related to effective use of Technology

xxiii Increased information portability in the ICT

environment

__________________________________________________________________________________

Page 359

Appendix A

xxiv Reduced hard copy storage of documents/drawings

xxv Flow of accurate information

xxvi Ease of retrieval of information

xxvii Improved capability of the system to cross reference to

other correspondence

xxviii Multilocational availability of information

Benefits related to increased Organizational Efficiency

xxix Increase in overall organizational efficiency

xxx Better information assessment and management within

the organization

xxxi Useful information compiled and disseminated to other

projects

3. ENABLERS THAT WOULD INCREASE THE ADOPTION AND BENEFITS OF

IT BASED COMMUNICATION

Specify any other enabler (if required) and rate its importance.

No

t Im

po

rta

nt

(1)

(2)

Mo

der

ate

ly

Imp

ort

an

t (3

)

(4)

Mo

st I

mp

ort

an

t (5

)

Technology related enablers

i Better interface between PM/scheduling software and

software utilized for other processes

ii Adequate and dependable conditional access systems

to be provided for the automated system

iii Software to be more user friendly and flexible

iv Time and cost scheduling software with increased

capability for risk management

v Availability of more multilingual software and web

portals

vi Availability of indigenously developed software

incorporating the specific construction industry

requirements of the country

vii Development of data communication and exchange

standards

viii Use of standardized information classification systems

ix Flexible/scalable systems that would help in meeting

changing demands

x Standardized drawing formats for presentation and

content.

xi Increased use of 3D visualization techniques as a

communication tool

Projects related enablers

xii Project scope requiring use of ICT

xiii Information flow planned in standardized formats

xiv Periodicity and alternative methods of communication

for each process finalized at the start of the project

__________________________________________________________________________________

Page 360

Appendix A

xv Project information seamlessly transferred between all

the phases of a building project.

xvi Each project to have a champion for adoption of ICT

and acting as the team leader. It could be the Project

Manager/owner’s project representative

xvii Better collaborative maturity or trust between team

members for sharing information

xviii All project team members use the same IT systems for

the project

xix Use of common internet services by project team

members

xx Shared use of common databases by project team

members

xxi Improved IT support to construction site processes

xxii Development of interaction communication protocols,

information policies, and meeting structures for online

meetings

xxiii Subcontractors and suppliers to be integrated formally

into communication and reporting structures

Organizations related enablers

xxiv Organization structures to be reengineered for use of

ICT

xxv Systems for better communication between office and

project sites

xxvi Senior management should create an environment for

adoption of ICT within the organization

xxvii Equal attention to be given to associated managerial

issues while conducting technical implementation

xxviii IT communication systems developed within

organizations to be business driven

xxix Development of a realistic and reliable electronic

database in the organization

Industry related enablers

xxx Education of the users for effective use of ICT and its

Benefits

xxxi Education of the users that ICT does not increase

isolation but enhances team working

xxxii Widespread adoption of ICT in the construction

industry

xxxiii Industry data and information bases maintained by

professional bodies and government agencies

xxxiv ICT Training to be more accessible and less costly

xxxv Measuring benefits accrued by utilization of IT based

communication

xxxvi Collaboration between research and practice

__________________________________________________________________________________

Page 361

Appendix A

4. INDUSTRY DRIVERS FOR ADOPTION OF IT BASED COMMUNICATION

Specify any other industry driver (if required) and rate its importance.

No

t Im

po

rta

nt

(1)

(2)

Mo

der

ate

ly

Imp

ort

an

t (3

)

(4)

Mo

st I

mp

ort

an

t (5

)

i Increased involvement of multiple agencies in


ii Increased involvement of geographically separated

agencies and information centers in a Project

iii Dynamic changes in information requirement during

project execution

iv Education of upcoming construction students towards

ICT

v Widespread availability of IT tools and technologies in

the country

vi Increased construction activity in the country

vii Increased competition with overseas construction

organizations executing projects in the Indian

construction industry

viii Increased requirement of adoption of ICT by larger

organizations when SMEs execute projects as

subcontracting agencies of larger organizations

ix Increased requirement of clients for more project

information resulting in increased use of ICT

SECTION IV - RESPONDENT’S PROFILE

To be filled up by the person filling up the questionnaire.

Please indicate your background of experience by providing the following information.

Your designation in the organization ______________________________

Your main area of experience:

Architecture �

Project Management �

Project site management �

General administration �

Your number of years in the construction industry ____________________

Your highest qualification_________________________________________

Your Comments__________________________________________________

THANK YOU FOR YOUR TIME AND EFFORT SPENT IN ANSWERING THIS

QUESTIONNAIRE!!!

__________________________________________________________________________________

Page 363

Appendix B: ISM Calculations

APPENDIX - B

INTERPRETIVE STRUCTURAL MODELING (ISM) CALCULATIONS

Tables showing results of iterations II to XI

__________________________________________________________________________________

Page 364


__________________________________________________________________________________

Page 365


__________________________________________________________________________________

Page 366


__________________________________________________________________________________

Page 367

Appendix C: SEM Analysis Data

APPENDIX - C

STRUCTURAL EQUATION MODELING (SEM) ANALYSIS DATA

Pearson Correlation between Indicator Variables

__________________________________________________________________________________

Page 368


Significant Unstandardised Path Coefficients, Factor Loadings,

Covariance and Estimates of the Hypothesized Model

0.35

0.876

0.735 0.692

0.2

62

Factor OF5

geo_sep1 geo_sep2

e1 e2

1 1

1 1.553

0.587

0.418 0.478

Factor OF4

d2


e3 e4 e5

1 1 1

1

1

0.693 0.906

0.12

0.466 0.563 0.741

0.207

Factor OF3

ictgeni ictgenu

e7 e6

1 1

d1

1

1 0.913

0.365 0.239

Final Factor


e10 e9 e8

d3 1

1 1 1

1 0.901

1.456

0.699 0.754 0.37

Fac

tor

PF

3

bar

_te

op

b

ar_

ind

1

e13

1

e14

1

1.3

16

0.4

95

0.2

87

0.7

06

Fac

tor

PF

2

ben

_te

te

ben

_org

p

1

e11

1

e12

1

0.9

71

0.2

51

0

.207

0.7

88

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Page 369


0.352

0.876

0.732 0.662

0.2

62

Factor OF5

geo_sep1 geo_sep2

e1 e2

1 1

1 1.549

0.589

0.422 0.477

Factor OF4

d2


e3 e4 e5

1 1 1

1

1

0.69 0.908

0.125

0.462 0.558 0.741

0.208

Factor OF3

ictgeni ictgenu

e7 e6

1 1

d1

1

1 0.912

0.364 0.237

Final Factor


e10 e9 e8

d3 1

1 1 1

1 0.902

1.456

0.699 0.754 0.371

Fac

tor

PF

3

bar

_te

op

b

ar_

ind

1

e13

1

e14

1

1.3

15

0.4

97

0.2

87

0.7

06


Covariance and Estimates of the Modified Model – Step 1

Fac

tor

PF

2

ben

_te

te

ben

_org

p

1

e11

1

e12

1

0.9

69

0.2

52

0

.206

0.7

89

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Page 370


0.294

0.854

0.731 0.677

0.2

47

Factor OF5

geo_sep1 geo_sep2

e1 e2

1 1

1 1.569

0.582

0.402 0.484

Factor OF4

d2


e3 e4 e5

1 1 1

1

1

0.699 0.910

0.121

0.469 0.561 0.738

0.222

Factor OF3

ictgeni ictgenu

e7 e6

1 1

d1

1

1 0.917

0.359 0.24

Final Factor


e10 e9 e8

d3 1

1 1 1

1 0.912

1.477

0.705 0.753 0.364

Fac

tor

PF

3

bar

_te

op

b

ar_

ind

1

e13

1

e14

1

1.3

66

0.4

68

0.2

81

0.7

12


Covariance and Estimates of the Modified Model – Step 2

Fac

tor

PF

2

ben

_te

te

ben

_org

p

1

e11

1

e12

1

0.9

84

0.2

4

0.2

17

0.7

78

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Page 371


0.304

0.865

0.727 0.633

Factor OF5

geo_sep1 geo_sep2

e1 e2

1 1

1 1.581

0.577

0.393 0.489

Factor OF4

d2


e3 e4 e5

1 1 1

1

1

0.677 0.911

0.139

0.453 0.547 0.746

0.224

Factor OF3

ictgeni ictgenu

e7 e6

1 1

d1

1

1 0.911

0.361 0.233


Covariance and Estimates of the Modified Model – Step 3 (Final Model)

Fac

tor

PF

2

ben

_te

te

ben

_org

p

1.0

45

e11

1

e12

1

1

0.2

62

0

.195

0.7

32

Final Factor


e10 e9 e8

d3 1

1 1 1

1 0.90

1.482

0.703 0.759 0.357

0.073

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Page 372


Grahical Representation of Standardized Residual

Covariances

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

1 5 9

13

17

21

25

29

33

37

41

45

49

53

57

61

65

__________________________________________________________________________________

Page 373

Appendix D: Benchmarking Framework

APPENDIX - D

BENCHMARKING FRAMEWORK

A framework for benchmarking use of ICT for building project management in the construction

industry is suggested. Measurement indicators (MIs) for the benchmarking framework are listed

below. Their performance measures are derived from the ‘Questionnaire survey’ analysis and

advanced literature review.

(MI1) Strategic use of ICT (7 performance measures)

MI1-1 Strategy is formulated for use of ICT within the organization (Yes/No)

MI1-2 Have a disaster recovery plan in case of breakdown of IT infrastructure

(Yes/No)

MI1-3 Planned timeframe for adopting Intranet for the organization

No plans Next 5-10 yrs Next 0-5 yrs/already

adopted

MI1-4 Planned timeframe for utilizing web sites for project management

No plans Next 5-10 yrs Next 0-5 yrs

MI1-5 Planned timeframe for adopting videoconferencing for meetings

No plans Next 5-10 yrs Next 0-5 yrs

MI1-6 Training is provided to staff for updated IT infrastructure and use of ICT

(Yes/No)

MI1-7 Organization has an in-house IT department or takes services of IT consultants

(Yes/No)

(MI2) Strategic Project Communication (4 performance measures) MI2-1 For majority of projects, planning is done for the specified formats of reports to be

generated throughout the project (Yes/No)

MI2-2 For majority of projects, planning is done for the periodicity at which reports are to

be generated during the project (Yes/No)

MI2-3 For majority of projects, planning is done for the periodicity at which meetings are

to be held during the project (Yes/No)

MI2-4 Project scope requires use of ICT by project team agencies (Yes/No)

(MI3) Measuring Benefits of use of ICT (7 performance measures) MI3-1 Measuring benefits of use of ICT (Yes/No)

If Yes

MI3-2 Measuring benefits related to measures of project success (Yes/No)

MI3-3 Measuring benefits related to effective team management (Yes/No)

MI3-4 Measuring benefits related to effective use of technology (Yes/No)

MI3-5 Measuring benefits related to increased organizational efficiency (Yes/No)

MI3-6 Quantitative measurement of benefits (Yes/No)

MI3-7 Subjective/Qualitative measurement of benefits (Yes/No)

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(MI4) ICT Infrastructure (15 performance measures)

MI4-1 Percentage of office staff with access to computers

0 – 45% 45%-90% More than 90%

MI4-2 Percentage of project site staff with access to computers

0 – 45% 45%-90% More than 90%

MI4-3 Project web sites being utilized for project management (Yes/No)

MI4-4 Centralized database in the organization (Yes/No)

MI4-5 Intranet facility in the organization (Yes/No)

MI4-6 Internet connection at project sites (Yes/No)

MI4-7 All the computers within office are connected through LAN (Yes/No)

MI4-8 MS Office software used in office for general administration works

(Yes/No)

MI4-9 Adobe acrobat reader provided at office (Yes/No)

MI4-10 MS Office software used at project sites for general administration works

(Yes/No)

MI4-11 Adobe acrobat reader provided at project sites (Yes/No)

MI4-12 Majority of electronic information is communicated between head office and project

sites as:

Physical transfer of

floppies/CDs etc

Combination of 1st

and 3rd

option

Via Internet/Intranet

MI4-13 Majority of electronic information is communicated between head office and other

agencies as:

Physical transfer of

floppies/CDs etc

Combination of 1st

and 3rd

option

Via Internet/Extranet

MI4-14 Basic method of keeping backup of electronic data

External/Internal hard

disk

CDs or other storage

disks

Combination of 1st and

2nd

option

MI4-15 Portable technology being utilized for project management

Mobile phone Mobile Internet Combination of 1st and 2

nd

option

(MI5) ICT for general administration (12 performance measures)

MI5-1 Majority of information flows within the head office as:

Hard copies e-mail and hard copy e-mail

MI5-2 Majority of information flows between head office and project sites as:


MI5-3 Majority of information flows between head office and clients as:


MI5-4 Majority of information flows between head office and consultants as:


MI5-5 Majority of information flows between head office and contractors/material

suppliers and other external agencies as:


MI5-6 Majority of information flows between project site office and other agencies as:


MI5-7 Majority of meetings between head office and site staff are conducted as:

Personal meetings Teleconference Videoconferencing

MI5-8 Majority of meetings between head office and clients are conducted as:

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Page 375



MI5-9 Majority of meetings between head office and consultants are conducted as:


MI5-10 Majority of meetings between head office and contractors/material suppliers and

other external agencies are conducted as:


MI5-11 Majority of joint meetings with clients, consultants and other agencies are conducted

as:


MI5-12 Accessing majority of external information for reference as:

Hard copies e-sources

(MI6) ICT for Time management (13 performance measures) a. Master Time schedule at design stage

MI6-1 Basic mode of communication between head office and clients/consultants


b. Detailed Time Schedule of works at construction stage

MI6-2 Basic mode of communication between head office and project sites




MI6-4 Basic mode of communication between head office and contractors/material

suppliers and other external agencies


c. Updated construction stage time schedules








d. Project performance reports for Time Schedules








e. Variance analysis reports for Time Schedules





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(MI7) ICT for Cost management (6 performance measures)

a. Cost estimates for the project



b. Detailed Cost Schedule/cash flow requirement for the project








c. Cost variance reports





(MI8) ICT for Project administration and Resource Management

(11 performance measures)

MI8-1 Majority of the bids for the project work are received as:


MI8-2 Majority of tender meetings and negotiations are conducted as:


MI8-3 Majority of interviews for hiring project staff are conducted as:


MI8-4 Majority of design review meetings are conducted as:


MI8-5 Majority of design changes are communicated between clients, consultants and other

agencies as:


MI8-6 Majority of information regarding materials is referred as:

Hard copies e-sources

MI8-7 Majority of meetings with material suppliers are conducted as:


MI8-8 Majority of materials management records are prepared at site as:

Manual documents MS Word

documents

MS Excel or customized

software documents

MI8-9 Majority of manpower resource management records are prepared at site as:

Manual documents MS Word

documents

MS Excel or customized

software documents

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Page 377


MI8-10 Method of storing documents at office for majority of the projects

Hard copies Hard copies and electronic copies Electronic

copies

MI8-11 Method of storing documents at majority of the project sites

Hard copies Hard copies and electronic copies Electronic copies

METHOD OF RATING

Following method of performance measurement was adopted:

• Wherever there were three options, rating level: 1-3 (from 1st option to last)

• Wherever there were two options, rating level: 1-2 (from 1st option to 2

nd)

• Wherever there is Yes/No option, rating level: 0-1 (0 for No)

Measurement indicators Rating range MI1: Strategic use of ICT 3-13

MI2: Strategic project communication 0-4

MI3: Measuring Benefits of use of ICT 0-7

MI4: ICT infrastructure 6-27

MI5: ICT for general administration 12-35

MI6: ICT for time management 13-39

MI7: ICT for cost management 6-18

MI8: ICT for project administration 11-32

RATING = 3 (MI1 + MI2 + MI3) + 2(MI4 + MI5) + MI6 +MI7 + MI8

= 3 (3-24) + 2 (18-62) + (30-89)

= (9-72) + (36-124) + (30-89)

= (75-285)

Divided into three equal ranges, organizations can be rated at following three levels:

Low rating: (75-144)

Middle rating: (145-215)

High rating: (216-285)

MEASUREMENT INDICATOR (MI) VALUES FOR THREE BENCHMARKED

ORGANIZATIONS

Measurement Indicator Values for Three Benchmarked Organizations

MI1 MI2 MI3 MI4 MI5 MI6 MI7 MI8

BO 12 3 4 22 20 26 12 18

PMCO 12 4 5 19 21 31 13 20

AO 8 3 5 18 17 26 9 17

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Page 378


Rating Calculations of Three Benchmarked Organizations

Builders (BO)

Rating = 3(12+3+4) + 2(22+20) + 26+12+18

= 3(19) + 2(42) + 56

= 57 + 84 + 56

= 197 (Middle Rating)

Project Management Consultancy Organization (PMCO)

Rating = 3(12+4+5) + 2(19+21) + 31+13+20

= 3(21) + 2(40) + 64

= 63 + 80 + 64


Architectural Organization (AO)

Rating = 3(8+3+5) + 2(18+17) + 26+9+17

= 3(16) + 2(35) + 52

= 48 + 70 + 52


__________________________________________________________________________________

Page379

Appendix E: DEA Data

APPENDIX - E

DATA ENVELOPMENT ANALYSIS (DEA) DATA

Efficiency Scores for Analyzed Organizations

Potential Improvement Required in BO