DOI: https://doi.org/10.15587/1729-4061.2018.151863

Formalization of selection of contract-organizational project delivery strategy

Olexander Bugrov, Olena Bugrova

Abstract


The formalized system to select a strategy for the implementation of a capital construction project was developed. This is important because an error in making a strategic decision (in an intuitive rather than formalized way) critically affects the further course of events on a project and usually cannot be fixed through the efforts of tactical and operative control. Throughout the whole range of strategies, a number of those, which have characteristic features, and therefore affect specifically project initiators, were determined. Discreteness of the field of alternatives gives a possibility to avoid "fuzziness" in making decisions on the most appropriate strategy. The system became unified through the separation of two elements in it: (1) variable (movable) context that recognizes the features a specific business situation and the specificity of the analyzed project, (2) constant (unmovable) context that reflects the properties of each of the alternative strategies. The business process of comparative analysis involves three stages: assessment of the organization maturity, identification of the market development level, determining project priorities and conformity of a priority complex with the profiles of key contract-organizational models. The first stage gives an answer to the question: "Is it worth following a multi-variant contract-organizational scheme of project management?", the second one solves the problem "Is it worthwhile applying IPD in the current situation?" and the third one gives a response to the question "Which of the contract-organizational models of the analyzed project should be followed?" Thus, the conceptual model reflects all available alternatives of typical strategies that are applied in the international best practices. The total number of key basic contract-organizational alternatives includes 26 strategies. Both the project space, and the field of strategic alternatives are reflected in an integrated coordinate system "time–costs–value–risk" by the conceptual model. The formalized toolset formed the system of the project agreement-organization models COMPAS. The formalized system makes it possible to make unambiguous well-grounded decisions on project delivery strategies, which in practice will lead to better project results.


Keywords


engineering of business processes; multi-criteria analysis; strategic decision-making; project delivery models

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References


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GOST Style Citations


Strategic Analysis Tools. Topic Gateway Series No. 34. CIMA. 2007. URL: https://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_strategic_analysis_tools_nov07.pdf.pdf

Manual “procurement strategy in construction” // Leonardo da Vinci ToI project, Trane-to-cap. 2012. URL: https://ru.scribd.com/document/343390835/Book1-PROCUREMENT-MANUAL-TTC-ENG-pdf

Building and Construction Procurement Guide. Principles and Options // Austroads. 2014. URL: http://www.apcc.gov.au/ALLAPCC/Building%20and%20Construction%20Procurement%20Guide.pdf

An Owner’s Guide to Project Delivery Methods // CMAA. 2012. URL: https://cmaanet.org/sites/default/files/inline-files/owners-guide-to-project-delivery-methods.pdf

Portfolio, Programme and Project Management Maturity Model (P3M3®). Introduction and Guide to P3M3® // OGC. 2010. URL: http://miroslawdabrowski.com/downloads/P3M3/OGC%20branded/P3M3_v2.1_Introduction_and_Guide.pdf

Planning Construction Procurement. A guide to developing your procurement strategy // New Zealand Government Procurement, Ministry of Business, Innovation and Employment. 2015. URL: https://www.procurement.govt.nz/assets/procurement-property/documents/guide-developing-your-procurement-strategy-construction-procurement.pdf

Haji-Kazemi S., Andersen B., Krane H. P. Identification of Early Warning Signs in Front-End Stage of Projects, an Aid to Effective Decision Making // Procedia – Social and Behavioral Sciences. 2013. Vol. 74. P. 212–222. doi: https://doi.org/10.1016/j.sbspro.2013.03.011 

Erdogan S. A., Šaparauskas J., Turskis Z. Decision Making in Construction Management: AHP and Expert Choice Approach // Procedia Engineering. 2017. Vol. 172. P. 270–276. doi: https://doi.org/10.1016/j.proeng.2017.02.111 

Applying decision-making techniques to Civil Engineering Projects / Abdel-malak F. F., Issa U. H., Miky Y. H., Osman E. A. // Beni-Suef University Journal of Basic and Applied Sciences. 2017. Vol. 6, Issue 4. P. 326–331. doi: https://doi.org/10.1016/j.bjbas.2017.05.004 

Lahdenperä P. Project Delivery Systems in Finnish New Building Construction – A Review of the Last Quarter Century // Procedia Economics and Finance. 2015. Vol. 21. P. 162–169. doi: https://doi.org/10.1016/s2212-5671(15)00163-x 

Mihic M., Sertic J., Zavrski I. Integrated Project Delivery as Integration between Solution Development and Solution Implementation // Procedia – Social and Behavioral Sciences. 2014. Vol. 119. P. 557–565. doi: https://doi.org/10.1016/j.sbspro.2014.03.062 

Selection Criteria for Delivery Methods for Infrastructure Projects / Hosseini A., Lædre O., Andersen B., Torp O., Olsson N., Lohne J. // Procedia – Social and Behavioral Sciences. 2016. Vol. 226. P. 260–268. doi: https://doi.org/10.1016/j.sbspro.2016.06.187 

Azhar N., Kang Y., Ahmad I. U. Factors Influencing Integrated Project Delivery in Publicly Owned Construction Projects: An Information Modelling Perspective // Procedia Engineering. 2014. Vol. 77. P. 213–221. doi: https://doi.org/10.1016/j.proeng.2014.07.019 

Project Delivery Methods in Large Public Road Projects – A Case Study of E6 Jaktøyen – Sentervegen / Haugen A., Wondimu P. A., Lohne J., Lædre O. // Procedia Engineering. 2017. Vol. 196. P. 391–398. doi: https://doi.org/10.1016/j.proeng.2017.07.215 

Pöyhönen P., Sivunen M., Kajander J.-K. Developing a Project Delivery System for Construction Project – A Case Study // Procedia Engineering. 2017. Vol. 196. P. 520–526. doi: https://doi.org/10.1016/j.proeng.2017.07.233 

Life Cycle Engineering and Management – Fostering the Management-orientation of Life Cycle Engineering Activities / Götze U., Peças P., Schmidt A., Symmank C., Henriques E., Ribeiro I., Schüller M. // Procedia CIRP. 2017. Vol. 61. P. 134–139. doi: https://doi.org/10.1016/j.procir.2016.11.240 

Aghazadeh H. Strategic Marketing Management: Achieving Superior Business Performance through Intelligent Marketing Strategy // Procedia – Social and Behavioral Sciences. 2015. Vol. 207. P. 125–134. doi: https://doi.org/10.1016/j.sbspro.2015.10.161 

Buhrov O. V., Buhrova O. O. Instytutsionalni mekhanizmy dosiahnennia tsilei budivelnykh proektiv // Upravlinnia rozvytkom skladnykh system. 2012. Issue 12. P. 30–34.

Bugrov O., Bugrova O. Formation of a cumulative model for managing the value of construction projects // Eastern-European Journal of Enterprise Technologies. 2017. Vol. 5, Issue 3 (89). P. 14–22. doi: https://doi.org/10.15587/1729-4061.2017.110112 

Halttula H., Aapaoja A., Haapasalo H. The Contemporaneous use of Building Information Modeling and Relational Project Delivery Arrangements // Procedia Economics and Finance. 2015. Vol. 21. P. 532–539. doi: https://doi.org/10.1016/s2212-5671(15)00209-9 

A guide to the project management body of knowledge (PMBOK guide). USA: Project Management Institute, 2013. 589 p.

Modelnyi kontrakt MTP dlia velykykh proektiv «pid kliuch». Kyiv: Asotsiatsiya «ZED», 2014. 184 p.

Bushuyev S. D., Wagner R. F. IPMA Delta and IPMA Organisational Competence Baseline (OCB) // International Journal of Managing Projects in Business. 2014. Vol. 7, Issue 2. P. 302–310. doi: https://doi.org/10.1108/ijmpb-10-2013-0049 

Nikolaiev V. P., Nikolaieva T. V. Informatsiyne modeliuvannia budivel: imperatyvy optymizatsiyi budivelno-ekspluatatsiynoho protsesu // Budivelne vyrobnytstvo. 2015. Issue 59. P. 17–26.







Copyright (c) 2018 Olexander Bugrov, Olena Bugrova

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ISSN (print) 1729-3774, ISSN (on-line) 1729-4061