Modern Construction Projects: A Comprehensive Literature Review

This literature review examines key aspects of modern construction projects, drawing on several sources to explore strategies for achieving smarter, better, and cheaper outcomes. It emphasizes the integration of digital tools for data management and the importance of pre-construction planning, in...Read More

MODERN CONSTRUCTION PROJECTS
Prepared By:
Date: 29th March 2018

LITERATURE REVIEW
1. Achieving smarter, better and cheaper construction projects
McKinsey & Company. (2018). The construction productivity imperative. [online]
Available at: https://www.mckinsey.com/industries/capital-projects-and
infrastructure/our-insights/the-construction-productivity-imperative [Accessed 29 Mar.
2018].
In achieving smarter, better and cheaper construction project, it would be very necessary
to integrate the digital tools of control and analysis especially in effective project data
management. According to McKinsey & Company (2018) complex construction projects
generate a lot of information hence there would be need to establish an online database to
organize the work and provide a platform for future reference. In fact, digitized
construction management methods greatly improve end user satisfaction (McKinsey &
Company, 2008). Notably, capital construction projects can be successfully delivered in
an environment that encourages better project management and technological
innovations. Currently, according to the author, the industry is lagging behind in terms of
delivery time, budget and specifications. The author advocates for implementation of
modern project management tools like design-to-value and minimal technical system
(MTS). The former establishes value along the construction process chain while the latter
makes it cheaper and faster to undertake construction projects. A properly defined MTS
simplifies the operational complexities that are often linked with capital construction. For
instance, effects of bad weather can be effectively accommodated with MTS such that
project delays due to natural phenomena are considerably reduced.
Bughin, J, Chui, M & Manyika, J 2015, ‘An executive’s guide to the Internet of Things’
in McKinsey and Company, Our insights, <http://www.mckinsey.com/business-
functions/digital-mckinsey/our-insights/an-executives-guide-to-the-internet-of-things>
The authors opine that to ensure quality of delivery in large construction projects, it
would be very necessary to embrace the most modern digital tools such as internet of
things (IoT) which promises to revolutionize the construction industry. IoT would
improve construction efficiency by facilitating availability of accurate pieces of
information from a complex web of unknowns in real time. However, the authors still

caution against over-reliance on IoT as it is prone to cyber attacks which can negatively
affect the security of critical construction data.
2. What is in Pre-construction effectiveness
Lingard, H., Saunders, L., Pirzadeh, P., Blismas, N., Kleiner, B. and Wakefield, R.
(2015). The relationship between pre-construction decision-making and the effectiveness
of risk control. Engineering, Construction and Architectural Management, 22(1), pp.108-
124.
According to the authors, prior planning in construction safety is essential towards
effective construction project delivery. It normally lowers the risk of project delays which
arises from unnecessarily high number of construction accidents. They further propose
technological controls to be integrated in the project safety policy as one of the means to
cushion against the adverse effects of safety incidences.
Fgould.com. (2018). The Importance of Effective Preconstruction Planning. [online]
Available at: https://www.fgould.com/americas/articles/importance-effective-
preconstruction-planning/ [Accessed 29 Mar. 2018].
In this case, the author agrees that the three most essential elements in the pre-
construction effective package include: scope of work, budget and schedule. According
to the author, scope of work provides a road map by defining the boundaries and limits
such that the planning team can focus only on the essentials. For instance, it describes
what is to be done in order to attain the set construction goals. Budget then supports the
scope of work by providing a breakdown of requirements in labor, materials, equipment
and technology costs. A schedule details the terrain that is to be followed so as to attain
the goals. It should be noted that an out-of-schedule project will never stay within the
scope of work as unnecessary budgetary constraints makes it difficult to correctly steer
the project.

3. What is on-site construction effective
Smallbusiness.chron.com. (2018). Effective Teamwork in Construction. [online]
Available at: http://smallbusiness.chron.com/effective-teamwork-construction-
12170.html [Accessed 29 Mar. 2018].
Effective construction projects require prior planning so that during on-site work, there
will be minimal disruptions in workflow as material is available all around. The author
further opines that by instituting changes in the existing logistical plan, for example
through effective supply contract, the project can boost its productivity and lead to
significant cost saving. This then means that supplier is able to provide just the right
quantity, type and on-time within the agreed budget.
4. Why Peer Benchmarks are critical
Iyer, K. and Banerjee, P. (2016). Measuring and benchmarking managerial efficiency of
project execution schedule performance. International Journal of Project Management,
34(2), pp.219-236.
Peer benchmark provides a yard stick for performance improvement. Suitable metrics are
established such that comparison is made to identify the under-performing areas and
subsequently performance improvement can be made. They often provide an opportunity
to review failures and recommend effective plan of action. The author opines that there
are about three essential dimensions in benchmarking and they include: process
effectiveness, project maturity and project effectiveness. Project maturity underscores the
rigor and quality of construction project and sets it as a yardstick for metric comparison.
The latter provides a system of checking the effectiveness through strict observance of
time, budget, and cost controls. This is often done by evaluating performance of the
benchmarked company vis-à-vis the benchmarking company.
5. Modern construction contract
LORD, W.E., SHUIBO, Z. and LIU, A., 2008. Towards a modern construction contracts:
parallel development in the UK and China. IN: Inter-national Conference on Multi-
National Construction Projects - Securing High Performance through Cultural Awareness
and Dispute Avoidance, Shanghai,China, Nov. 21-23.

Modern construction contracts are striving towards promotion of fair deals such that
parties can feel a sense of being part and parcel of the contract. The modern construction
requires collective participation of all parties each with a set of responsibilities that must
be undertaken in order to successfully deliver the project. The key partners in the
arrangement include project contractor, supplier, client and financier. Normally various
provisions are to be included in the contract to promote tenets of fairness. For instance,
the aspect of subcontracting must bear the spirit of mutual trust and cooperation such that
decisions within the management portfolio are to be made in confidence pursuant to
various provisions as shall be deemed necessary. Consequently, any member has a right
to reject proposal if any of the provisions of ‘fair deal’ are breached under grounds of
“reason for non acceptance”
6. Lifting Pre-competitive innovation
ENR. (2018). Embracing Creativity and Innovation in Construction. Available at:
https://www.enr.com/articles/39932-embracing-creativity-and-innovation-in-construction
[Accessed 29 Mar. 2018].
Innovation is being termed as a currency for future construction projects (ENR, 2018). In order
to boost competiveness in modern projects, there is need to improve the innovativeness. It is
through creativity that common challenges at the construction site can be addressed. The author
encourages that more opportunities need to be identified so that workers can be more creative at
work. For instance, safety challenges at work can be eliminated through thoughtful idea
generation and implementation. From those pockets of ideas, the pre-competitive innovation can
be sustained so as to compete favorably with other projects of same magnitude.