Analysis of project success factors in construction industry
Abstract
A great emphasis has taken place to identify and analyse the factors that have been affecting the success and the failure of construction projects in recent decades. As a project-based industry, construction has heavily invested in such research. Moreover, the construction industry suffers the most to meet deadlines and budgets limits. The objective of this paper is to identify the critical success factors in construction industry. The study focused on Middle East region. In order to achieve this objective, 25 project success factors were identified by reviewing related literature. The factors were assessed for their impact and contribution to the actual performance of the project on three criteria: schedule, cost, and quality. Then a questionnaire was developed and sent to different experts in the construction industry. The collected data of 111 responses was then analysed statistically by using different tools such as: importance index, Spearman’s rank correlation factor and T-test. As a result, company’s technical capacity and scope and work definition were ranked the most important factors. The results of this research may provide a great assistance to professionals and researchers in identifying the critical factors in the construction industry.
First published online 28 December 2015
Keyword : project success factors, construction industry, importance index
How to Cite
Gunduz, M., & Yahya, A. M. A. (2018). Analysis of project success factors in construction industry. Technological and Economic Development of Economy, 24(1), 67–80. https://doi.org/10.3846/20294913.2015.1074129
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Assaf, S. A.; Al-Hejji, S. 2006. Causes of delay in large construction projects, International Journal of Project Management 24: 349–357. http://dx.doi.org/10.1016/j.ijproman.2005.11.010
Atkinson, R. 1999. Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria, International Journal of Project Management 17(6): 337–342. http://dx.doi.org/10.1016/S0263-7863(98)00069-6
Barber, R. 2005. Understanding internally generated risks in projects, International Journal of Project Management 23(8): 584–590. http://dx.doi.org/10.1016/j.ijproman.2005.05.006
Bryde, D. J.; Robinson, L. 2005. Client versus contractor perspectives on project success criteria, International Journal of Project Management 23: 622–629. http://dx.doi.org/10.1016/j.ijproman.2005.05.003
Chan, A. P. C.; Scott, D.; Chan, A. P. L. 2004. Factors affecting the success of a construction project, ASCE Journal of ConstructionEngineering and Management 130(1): 153–155. http://dx.doi.org/10.1061/(ASCE)0733-9364(2004)130:1(153)
Chua, D. K. H.; Loh, P. K.; Kog, Y. C.; Jaselskis, E. J. 1997. Neural networks for construction project success, Expert Systems with Applications 13(4): 317–328. http://dx.doi.org/10.1016/S0957-4174(97)00046-8
Chua, D. K. H.; Kog, Y. C.; Loh, P. K. 1999. Critical success factors for different project objectives, ASCE Journal of Construction Engineering and Management 125(3): 142–150. http://dx.doi.org/10.1061/(ASCE)0733-9364(1999)125:3(142)
Coskun, H.; Erdis, E.; Demirci, M. 2013. Pricing policies as a marketing strategy in the construction industry: case study of Turkish companies, Technological and Economic Development of Economy 19(Supplement 1): S1–S21. http://dx.doi.org/10.3846/20294913.2013.821688
Cooke-Davies, T. 2002. The “real” success factors on projects, International Journal of Project Management 20: 185–190. http://dx.doi.org/10.1016/S0263-7863(01)00067-9
Dissanayaka, S. M.; Kumaraswamy, M. M. 1999. Evaluation of factors affecting time and cost performance in Hong Kong building projects, Engineering, Construction and Archetictural Management 6(3): 287–298. http://dx.doi.org/10.1108/eb021119
Doloi, H.; Sawhney, A.; Iyer, K. C.; Rentala, S. 2012. Analysing factors affecting delays in Indian construction projects, International Journal of Project Management 30(4): 479–489. http://dx.doi.org/10.1016/j.ijproman.2011.10.004
Fortune, J.; White, D. 2006. Framing of project critical success factors by a systems model, International Journal of Project Management 24(1): 53–65. http://dx.doi.org/10.1016/j.ijproman.2005.07.004
Ghosh, S.; Buckler, L.; Skibniewski, M. J.; Negahban, S.; Kwak, Y. H. 2014. Organizational governance to integrate sustainability projects: a case study, Technological and Economic Development of Economy 20(1): 1–24. http://dx.doi.org/10.3846/20294913.2014.850755
Gudiene, N.; Banaitis, A.; Podvezko, V.; Banaitiene, N. 2014. Identification and evaluation of the critical success factors for construction projects in Lithuania: AHP approach, Journal of Civil Engineering and Management 20(3): 350–359. http://dx.doi.org/10.3846/13923730.2014.914082
Gunduz, M.; Hanna, A. S. 2005. Benchmarking change order impacts on productivity for electrical and mechanical projects, Building and Environment Journal 40(8): 1068–1075. http://dx.doi.org/10.1016/j.buildenv.2004.10.004
Jaselskis, E. J.; Ashley, D. B. 1991. Optimal allocation of project management resources for achieving success, ASCE Journal of Construction Engineering and Management 117(2): 321–340. http://dx.doi.org/10.1061/(ASCE)0733-9364(1991)117:2(321)
Jaśkowski, P.; Biruk, S. 2011. The method for improving stability of construction project schedules through buffer allocation, Technological and Economic Development of Economy 17(3): 429–444. http://dx.doi.org/10.3846/20294913.2011.580587
Jha, K. N.; Iyer, K. C. 2007. Commitment, coordination, competence and the iron triangle, International Journal of Project Management 25(5): 527–540. http://dx.doi.org/10.1016/j.ijproman.2006.11.009
Kaming, P. F.; Olomolaiye, P. O.; Holt, G. D.; Harris, F. C. 1997. Factors influencing construction time and cost overruns on high-rise projects in Indonesia, Construction Management and Economics 15(1): 83–94. http://dx.doi.org/10.1080/014461997373132
Kog, Y. C.; Loh, P. K. 2012. Critical success factors for different components of construction projects, ASCE Journal of Construction Engineering And Management 138(4): 520–528. http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000464
Leung, M. Y.; Ng, S. T.; Cheung, S. O. 2004. Measuring construction project participant satisfaction, Construction Management and Economics 22(3): 319–331. http://dx.doi.org/10.1080/01446190320000000000
Mitkus, S.; Trinkūnienė, E. 2008. Reasoned decisions in construction contracts evaluation, Technological and Economic Development of Economy 14(3): 402–416. http://dx.doi.org/10.3846/1392-8619.2008.14.402-416
Munns, A. K.; Bjeirmi, B. F. 1996. The role of project management in achieving project success, International Journal of Project Management 14(2): 81–87. http://dx.doi.org/10.1016/0263-7863(95)00057-7
Ogunlana, S.; Siddiqui, Z.; Yisa, S.; Olomolaiye, P. 2002. Factors and procedures used in matching project managers to construction projects in Bangkok, International Journal of Project Management 20: 385–400. http://dx.doi.org/10.1016/S0263-7863(01)00017-5
Pinto, J. K. 1985. Project managers and major projects, Project Management Journal 3(4): 225–230. http://dx.doi.org/10.1016/0263-7863(85)90054-7
PMI. 2004. A guide to the project management body of knowledge [online], [cited 07 April 2014]. Available from Internet: www.pmi.org
Pocock, J. B.; Liu, L. Y.; Kim, M. K. 1997. Impact of management approach on project interaction and performance, ASCE Journal of Construction Engineering and Management 123(4): 411–418. http://dx.doi.org/10.1061/(ASCE)0733-9364(1997)123:4(411)
Sambasivan, M.; Soon, Y. 2007. Causes and effects of delays in Malaysian construction industry, International Journal of Project Management 25: 517–526. http://dx.doi.org/10.1016/j.ijproman.2006.11.007
Sanvido, V.; Parfitt, K.; Guveris, M.; Coyle, M. 1992. Critical success factors for construction projects, ASCE Journal of Construction Engineering and Management 118(1): 94–111. http://dx.doi.org/10.1061/(ASCE)0733-9364(1992)118:1(94)
Songer, A. D.; Molenaar, K. R. 1997. Project characteristics for successful public-sector design-build, ASCE Journal of Construction Engineering and Management 123(1): 34–40. http://dx.doi.org/10.1061/(ASCE)0733-9364(1997)123:1(34)
Tabish, S. Z.; Jha, K. N. 2012. Success traits for a construction project, ASCE Journal of Construction Engineering and Management 138(10): 1131–1138. http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000538
Turner, J. R.; Cochrane, R. A. 1993. Goals-and-methods matrix: coping with projects ill defined goals and/or methods of achieving them, International Journal of Project Management 11(2): 93–102. http://dx.doi.org/10.1016/0263-7863(93)90017-H
Walker, D. H. T. 1995. An investigation into construction time performance, Construction Management and Economics 13(3): 263–274. http://dx.doi.org/10.1080/01446199500000030
Wang, S.; Dulaimi, M. F.; Aguria, M. Y. 2004. Risk management framework for construction projects in developing countries, Construction Management and Economics 22(3): 237–252. http://dx.doi.org/10.1080/0144619032000124689
Wang, X.; Huang, J. 2006. The relationships between key stakeholders’ project performance and project success: perceptions of Chinese construction supervising engineers, International Journal of Project Management 24: 253–260. http://dx.doi.org/10.1016/j.ijproman.2005.11.006
Yang, L. R.; Huang, C. F.; Wu, K. S. 2011. The association among project manager’s leadership style, teamwork and project success, International Journal of Project Management 29: 258–267. http://dx.doi.org/10.1016/j.ijproman.2010.03.006
Yang, J.; Shen, G. Q.; Drew, D. S.; Ho, M. 2010. Critical success factors for stakeholder management: construction practitioners’ perspectives, ASCE Journal of Construction Engineering and Management 136(7): 778–786. http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000180
Ye, J.; Hassan, T.; Carter, C.; Kemp, L. 2009. Stakeholders requirements analysis for a demand-driven construction industry [online], [cited 07 April 2014]. Available from internet: http://www.itcon.org
Yu, A. T. W.; Shen, Q.; Kelly, J.; Hunter, K. 2006. Investigation of critical success factors in construction project briefing by way of content analysis, ASCE Journal of Construction Engineering and Management 132(11): 1178–1186. http://dx.doi.org/10.1061/(ASCE)0733-9364(2006)132:11(1178)
Yun, S.; Jung, W.; Han, S. H.; Park, H. 2015. Critical organizational success factors for public private partnership projects – a comparison of solicited and unsolicited proposals, Journal of Civil Engineering and Management 21(2): 131–143. http://dx.doi.org/10.3846/13923730.2013.802715
Zou, W.; Kumaraswamy, M.; Chung, J.; Wong, J. 2014. Identifying the critical success factors for relationship management in PPP projects, International Journal of Project Management 32(2): 265–274. http://dx.doi.org/10.1016/j.ijproman.2013.05.004
Assaf, S. A.; Al-Hejji, S. 2006. Causes of delay in large construction projects, International Journal of Project Management 24: 349–357. http://dx.doi.org/10.1016/j.ijproman.2005.11.010
Atkinson, R. 1999. Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria, International Journal of Project Management 17(6): 337–342. http://dx.doi.org/10.1016/S0263-7863(98)00069-6
Barber, R. 2005. Understanding internally generated risks in projects, International Journal of Project Management 23(8): 584–590. http://dx.doi.org/10.1016/j.ijproman.2005.05.006
Bryde, D. J.; Robinson, L. 2005. Client versus contractor perspectives on project success criteria, International Journal of Project Management 23: 622–629. http://dx.doi.org/10.1016/j.ijproman.2005.05.003
Chan, A. P. C.; Scott, D.; Chan, A. P. L. 2004. Factors affecting the success of a construction project, ASCE Journal of ConstructionEngineering and Management 130(1): 153–155. http://dx.doi.org/10.1061/(ASCE)0733-9364(2004)130:1(153)
Chua, D. K. H.; Loh, P. K.; Kog, Y. C.; Jaselskis, E. J. 1997. Neural networks for construction project success, Expert Systems with Applications 13(4): 317–328. http://dx.doi.org/10.1016/S0957-4174(97)00046-8
Chua, D. K. H.; Kog, Y. C.; Loh, P. K. 1999. Critical success factors for different project objectives, ASCE Journal of Construction Engineering and Management 125(3): 142–150. http://dx.doi.org/10.1061/(ASCE)0733-9364(1999)125:3(142)
Coskun, H.; Erdis, E.; Demirci, M. 2013. Pricing policies as a marketing strategy in the construction industry: case study of Turkish companies, Technological and Economic Development of Economy 19(Supplement 1): S1–S21. http://dx.doi.org/10.3846/20294913.2013.821688
Cooke-Davies, T. 2002. The “real” success factors on projects, International Journal of Project Management 20: 185–190. http://dx.doi.org/10.1016/S0263-7863(01)00067-9
Dissanayaka, S. M.; Kumaraswamy, M. M. 1999. Evaluation of factors affecting time and cost performance in Hong Kong building projects, Engineering, Construction and Archetictural Management 6(3): 287–298. http://dx.doi.org/10.1108/eb021119
Doloi, H.; Sawhney, A.; Iyer, K. C.; Rentala, S. 2012. Analysing factors affecting delays in Indian construction projects, International Journal of Project Management 30(4): 479–489. http://dx.doi.org/10.1016/j.ijproman.2011.10.004
Fortune, J.; White, D. 2006. Framing of project critical success factors by a systems model, International Journal of Project Management 24(1): 53–65. http://dx.doi.org/10.1016/j.ijproman.2005.07.004
Ghosh, S.; Buckler, L.; Skibniewski, M. J.; Negahban, S.; Kwak, Y. H. 2014. Organizational governance to integrate sustainability projects: a case study, Technological and Economic Development of Economy 20(1): 1–24. http://dx.doi.org/10.3846/20294913.2014.850755
Gudiene, N.; Banaitis, A.; Podvezko, V.; Banaitiene, N. 2014. Identification and evaluation of the critical success factors for construction projects in Lithuania: AHP approach, Journal of Civil Engineering and Management 20(3): 350–359. http://dx.doi.org/10.3846/13923730.2014.914082
Gunduz, M.; Hanna, A. S. 2005. Benchmarking change order impacts on productivity for electrical and mechanical projects, Building and Environment Journal 40(8): 1068–1075. http://dx.doi.org/10.1016/j.buildenv.2004.10.004
Jaselskis, E. J.; Ashley, D. B. 1991. Optimal allocation of project management resources for achieving success, ASCE Journal of Construction Engineering and Management 117(2): 321–340. http://dx.doi.org/10.1061/(ASCE)0733-9364(1991)117:2(321)
Jaśkowski, P.; Biruk, S. 2011. The method for improving stability of construction project schedules through buffer allocation, Technological and Economic Development of Economy 17(3): 429–444. http://dx.doi.org/10.3846/20294913.2011.580587
Jha, K. N.; Iyer, K. C. 2007. Commitment, coordination, competence and the iron triangle, International Journal of Project Management 25(5): 527–540. http://dx.doi.org/10.1016/j.ijproman.2006.11.009
Kaming, P. F.; Olomolaiye, P. O.; Holt, G. D.; Harris, F. C. 1997. Factors influencing construction time and cost overruns on high-rise projects in Indonesia, Construction Management and Economics 15(1): 83–94. http://dx.doi.org/10.1080/014461997373132
Kog, Y. C.; Loh, P. K. 2012. Critical success factors for different components of construction projects, ASCE Journal of Construction Engineering And Management 138(4): 520–528. http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000464
Leung, M. Y.; Ng, S. T.; Cheung, S. O. 2004. Measuring construction project participant satisfaction, Construction Management and Economics 22(3): 319–331. http://dx.doi.org/10.1080/01446190320000000000
Mitkus, S.; Trinkūnienė, E. 2008. Reasoned decisions in construction contracts evaluation, Technological and Economic Development of Economy 14(3): 402–416. http://dx.doi.org/10.3846/1392-8619.2008.14.402-416
Munns, A. K.; Bjeirmi, B. F. 1996. The role of project management in achieving project success, International Journal of Project Management 14(2): 81–87. http://dx.doi.org/10.1016/0263-7863(95)00057-7
Ogunlana, S.; Siddiqui, Z.; Yisa, S.; Olomolaiye, P. 2002. Factors and procedures used in matching project managers to construction projects in Bangkok, International Journal of Project Management 20: 385–400. http://dx.doi.org/10.1016/S0263-7863(01)00017-5
Pinto, J. K. 1985. Project managers and major projects, Project Management Journal 3(4): 225–230. http://dx.doi.org/10.1016/0263-7863(85)90054-7
PMI. 2004. A guide to the project management body of knowledge [online], [cited 07 April 2014]. Available from Internet: www.pmi.org
Pocock, J. B.; Liu, L. Y.; Kim, M. K. 1997. Impact of management approach on project interaction and performance, ASCE Journal of Construction Engineering and Management 123(4): 411–418. http://dx.doi.org/10.1061/(ASCE)0733-9364(1997)123:4(411)
Sambasivan, M.; Soon, Y. 2007. Causes and effects of delays in Malaysian construction industry, International Journal of Project Management 25: 517–526. http://dx.doi.org/10.1016/j.ijproman.2006.11.007
Sanvido, V.; Parfitt, K.; Guveris, M.; Coyle, M. 1992. Critical success factors for construction projects, ASCE Journal of Construction Engineering and Management 118(1): 94–111. http://dx.doi.org/10.1061/(ASCE)0733-9364(1992)118:1(94)
Songer, A. D.; Molenaar, K. R. 1997. Project characteristics for successful public-sector design-build, ASCE Journal of Construction Engineering and Management 123(1): 34–40. http://dx.doi.org/10.1061/(ASCE)0733-9364(1997)123:1(34)
Tabish, S. Z.; Jha, K. N. 2012. Success traits for a construction project, ASCE Journal of Construction Engineering and Management 138(10): 1131–1138. http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000538
Turner, J. R.; Cochrane, R. A. 1993. Goals-and-methods matrix: coping with projects ill defined goals and/or methods of achieving them, International Journal of Project Management 11(2): 93–102. http://dx.doi.org/10.1016/0263-7863(93)90017-H
Walker, D. H. T. 1995. An investigation into construction time performance, Construction Management and Economics 13(3): 263–274. http://dx.doi.org/10.1080/01446199500000030
Wang, S.; Dulaimi, M. F.; Aguria, M. Y. 2004. Risk management framework for construction projects in developing countries, Construction Management and Economics 22(3): 237–252. http://dx.doi.org/10.1080/0144619032000124689
Wang, X.; Huang, J. 2006. The relationships between key stakeholders’ project performance and project success: perceptions of Chinese construction supervising engineers, International Journal of Project Management 24: 253–260. http://dx.doi.org/10.1016/j.ijproman.2005.11.006
Yang, L. R.; Huang, C. F.; Wu, K. S. 2011. The association among project manager’s leadership style, teamwork and project success, International Journal of Project Management 29: 258–267. http://dx.doi.org/10.1016/j.ijproman.2010.03.006
Yang, J.; Shen, G. Q.; Drew, D. S.; Ho, M. 2010. Critical success factors for stakeholder management: construction practitioners’ perspectives, ASCE Journal of Construction Engineering and Management 136(7): 778–786. http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000180
Ye, J.; Hassan, T.; Carter, C.; Kemp, L. 2009. Stakeholders requirements analysis for a demand-driven construction industry [online], [cited 07 April 2014]. Available from internet: http://www.itcon.org
Yu, A. T. W.; Shen, Q.; Kelly, J.; Hunter, K. 2006. Investigation of critical success factors in construction project briefing by way of content analysis, ASCE Journal of Construction Engineering and Management 132(11): 1178–1186. http://dx.doi.org/10.1061/(ASCE)0733-9364(2006)132:11(1178)
Yun, S.; Jung, W.; Han, S. H.; Park, H. 2015. Critical organizational success factors for public private partnership projects – a comparison of solicited and unsolicited proposals, Journal of Civil Engineering and Management 21(2): 131–143. http://dx.doi.org/10.3846/13923730.2013.802715
Zou, W.; Kumaraswamy, M.; Chung, J.; Wong, J. 2014. Identifying the critical success factors for relationship management in PPP projects, International Journal of Project Management 32(2): 265–274. http://dx.doi.org/10.1016/j.ijproman.2013.05.004