ECI and its implementation factors in the construction industry

ECI AND ITS
IMPLEMENTATION
FACTORS IN THE
CONSTRUCTION
INDUSTRY

TABLE OF CONTENTS
LITERATURE REVIEW................................................................................................................3
Introduction.................................................................................................................................3
Theme: 1 - General description of ECI.......................................................................................3
Theme 2: Procurement route......................................................................................................4
Theme: 3 - ECI Procurement Strategies and its influence over the construction project...........5
Theme 4: Procurement selection criteria ..................................................................................6
Theme 5: Benefits and Challenges of ECI..................................................................................7
Theme: 6 - Advantages and disadvantages of ECI.....................................................................8
Theme 7 : Barriers related to ECI..............................................................................................9
Theme: 8 - Motivating factors of ECI.......................................................................................10
Theme 9: Project life cycle of ECI..........................................................................................10
CONCLUSION.........................................................................................................................11
REFERENCES..............................................................................................................................11
Books and Journals...................................................................................................................11
Online........................................................................................................................................14

LITERATURE REVIEW
Introduction
The present chapter is based on reviewing the literature associated with ECI (Early
Contractor Involvement) and factors associated with its implementation within the construction
industry. Accordingly, various books, journals, academic sources and other secondary sources of
data will be evaluated in order to critically analyse the concept of ECI and other associated
concepts such as procurement routes and strategies and its influence over the construction
projects, benefits and challenges of ECI, barriers of ECI, motivating factor of ECI and project
life cycle & implementation of ECI. Various themes will be formed to include the aforesaid
literature given by different authors and experts of the field.
Theme: 1 - General description of ECI
ECI or (Early Contractor Involvement) as the name suggest is a type of contract within
construction industry where principal contractor gets engaged in construction project at early
stage, so that their input can be utilized at design phase itself. It is a contrasting concept with
reference to Design – bid – build model where contractor gets involved in the project when the
design phase ended. The aim of indulging contractor at the earliest is to get their input related to
project design, so that suggestions can be obtained with regard to value engineering changes. The
biggest benefit that the project owner gets due to involving contractors in early stages of project
is saving of time and cost by more than 10% and 7% respectively as found out by Ng, Graser and
Hall (2021) in their study. This is because ECI is considered to an efficiency adding factor while
designing and planning for projects related to construction industries such as infrastructure
projects.
According to (Farrell, 2020) ECI allows for utilizing the skills, expertise and
competencies of contractors at early as possible to ensure cost - effectiveness and efficiency in
operations. Further, a better mutual understanding and relationship can be build among all the
stakeholders of the project which render certain benefits such as thinking together to find the best
possible solutions along with using and respecting each other's expertise and opinions.
(Ferme, 2018) has stated that a contractor under ECI contract gets involved in the project
for a fee or commission for their suggestions and recommendations provided comparatively

earlier that is, right from design phase till the completion of the project. Accordingly, project
manager obtains guidance in preliminaries to get enhanced profit and reduced overheads.
Theme 2: Procurement route
(Finnie, 2018) has defined construction contracts as an infrastructure projects that mainly
refers ton airports, roads and ports as well as other civil engineering activities. The duration of
such contract may last for year or months depend on the size of construction. Along with this, it
involves time and cost as well as any kind of underestimated and anticipated may lead to
endless litigation. The contract is an agreement enforceable by law in which both the parties
prefer to protect their interests by using available means. Since contract may expose to risk
related to cost and time as well as procurement process is guided by employee policy and
procedure. Moreover, procurement process start with the subordinate team deciding
procurement route after the project management team have determined the sections of the
contract as well as determine the contractual obligations. (Lefebvre, 2019) has stated that before
selecting procurement route contractor should analyse all the factor that can influence the
construction of project such as weather, altitude and topography. It will help in making right
routes available and find the most suitable as well as beneficial part for the company. (Ng,
2021) has defined procurement is purchase of materials, services and suppliers which is
required for accomplishing the business as well as to achieve project goals effectively.
Although in construction refers to goods and services need to build and start of project.
There are three different type of procurement routes available for construction company
and employers. The most common is Lump sum method of procurement in which a
construction contractor is selected by employer who has a responsibility for success of project
within the agreed limited time. Such contracts by their nature are founded on fixed price
lump sum and it is generally called the contract sum. The amount will be given to the
contractor upon completion of project as well as if there is nay change while working the
amount will be given to the contractor in order to meet the requirements. Along with this, a
contractor will compensate for the additional work that is required during variation as well it
increases their work. (Nwajei, 2021) has defined design and build procurement in which the
contractor has to make design of the construction and completion of construction agreed upon
the contract cost and time frame.