The price competition in construction is increasing day by day. Though the guiding concept of an estimator is accuracy, by its nature an estimate is uncertain in the most situations. The changing market condition, price of material, labor, availability of equipment natural factors etc. may increase the estimated cost having high level of accuracy. And it may be exceed the budget or overrun the estimated cost after the completion of the work. Also, time and location change the cost of construction.
Enhancing the reality, level of detail, completeness, documentation, the direct and indirect costs, and contingency demands the knowledge of probable evidence or what will occur. The procedure of operation in the workplace is taken into account in the estimating process. So the procedure of operation and use of several equipments that considered during estimation sometime fail to meet the present situation and the category of the work. If the budget fails to meet the estimated cost the work will not be considered to carry out at all (Carr, 1989).
Many organizations are unable to function as knowledge based organization, because they suffer from learning disabilities. Companies must innovate or die; and their ability to learn, adapt and change be comes a core competency for survival. The forces of technology, globalization and the emerging knowledge economy are creating a revolution that is forcing organizations to seek new ways to reinvent themselves (Asian Productivity Organization 2002: 1-4).
The maintenance of organization’s current assets and capabilities in a state of effectiveness for use in the actions which the organization is currently undertaking needs an effective knowledge management in the organization. Competence in bidding, cope with changing market, supporting the budget in the construction industry requires the high level of experience of the estimator or the estimating team. In course of time the lack of knowledge creation in the construction industry reduces the competency; consequently the organization may be ruined (Hurley, 2002, Lowe and Skitmore, 2001). Infact, the construction companies have to manage their knowledge for their survival in the competitive market as well as success in the various projects (Smith 1994:25, Kamara et al, 2002).
Mr. Mohammad Kamal Hossain made this research to (1) study what knowledge must be created to support the estimating process; (2) study about the different activities used to create knowledge i.e., how to create the knowledge related to the estimating process; (3) study about the effectiveness of the knowledge creating activities for creating knowledge to support the estimating process in the existing practice; and (4) find out the problems due to implementation of the knowledge creating activities.
Conclusions
1. Knowledge Creation for Estimating Process.
Survey and data analysis revealed that several kinds of knowledge were found to be created to support the estimating process. The feature of this knowledge creation is given below.
- Various types of knowledge must be created to support the estimating process.
- The most types of the knowledge represented to the respondents were considered by them to be created to support the estimating process. For example, “Knowledge of understanding and developing method of construction” was considered to be created by all the respondents.
- Only the ‘knowledge for preparing the preliminary estimate in various methods’ was not considered to be created to support the estimating process by the major portion of the respondents.
- The respondents were also asked about any kind of knowledge they considered out of the questionnaire, but they did not mention anyone.
2. The Knowledge Creating Activities Used in Construction Industries
There are various kinds of tool used for creating knowledge. After the interview and survey it was found that, in the existing practice Group Discussion, Training, Previous Project (following previous projects), and Recruiting were used to create these knowledge. It was observed that only these four activities were used to create knowledge for estimating process.
Against each type of knowledge related to the estimating process the usage of these four activities (which activities they used to create the knowledge) was calculated. The analysis shows that;
- To create the knowledge, some knowledge creating activities were used.
- Only certain types of activities (only four activities) were used by the companies.
- Different type of knowledge was created by using different activity.
- In most of the cases a company chose only a particular type of knowledge creating activities to create a particular type of knowledge.
- For any type of knowledge related to estimating process can be created by one activity or more than one activity. For example, according to this study “Knowledge of understanding and developing method of construction” can be created by Group Discussion, or, Training, or Previous Projects.
- For any type of knowledge the companies used only two or three types of knowledge creating activities. They can improve it by using more knowledge creating activities to create a particular type of knowledge.
A correlation test between the knowledge creating activities was also performed to observe the trend and behavior of these activities towards each other. The result showed that no activity was found as significantly positively correlated among the knowledge creating activities (between any two activities); but many of them were found as negatively correlated. It means if the companies used more an activity (of which activities were negatively correlated) then they trend to use less the other activity and vise versa. For example, for creating “Knowledge of understanding and developing method of construction”, the used activity Group Discussion and Previous Project is negatively correlated by their frequencies. This means the companies used more Group Discussion trend to use less Previous Project to create this knowledge and vise versa.
3. Effectiveness of the Knowledge Creating Activities
The effectiveness of the knowledge creating activities for creating any type of knowledge related to estimating process was measured by making correlation between the knowledge creating activities and the success factor of the companies. The frequencies of usage of the knowledge creating activities were correlated with the success factor of the companies. Which activity showed the positive correlation with the success factor was considered as the more effective means. Success factor of each company was determined by the cost ratio of some projects completed by the company. Success factor of different companies were not equal.
Different activity was found effective for different type of knowledge i.e., the effectiveness of these activities varies for different type of knowledge (see table 5.1). For example, “Knowledge of understanding and developing method of construction” can be created by Group Discussion, or, Training, or Previous Projects. But in this case, Previous Project is more effective than Group Discussion or Training.
For some categories of knowledge no activity was found as more effective activity among the activities used by the respondents in the current practice. But the knowledge is created by using some knowledge creating activities which was already determined.
If one of the knowledge creating activity is determined as more effective than others for create any type of knowledge then it is better to use the activity more to create the knowledge. In the given example as the activity Previous Project is more effective than others. So Previous Project can be used more by reducing the use of Training or Group Discussion to create that type of knowledge.
4. Problems Occurred due to Implementation of These Knowledge Creating Activities
Various types of problem occurred due to implementation of these knowledge creating activities. Some problems occurred by the employees of the companies and some problems occurred by the management body of the organizations. There were some problems for which either organization or the participants were not responsible. The problems due to all knowledge creating activities were listed separately. Problems occurred for each type of knowledge creating activities is given in the table below.
Enhancing the reality, level of detail, completeness, documentation, the direct and indirect costs, and contingency demands the knowledge of probable evidence or what will occur. The procedure of operation in the workplace is taken into account in the estimating process. So the procedure of operation and use of several equipments that considered during estimation sometime fail to meet the present situation and the category of the work. If the budget fails to meet the estimated cost the work will not be considered to carry out at all (Carr, 1989).
Many organizations are unable to function as knowledge based organization, because they suffer from learning disabilities. Companies must innovate or die; and their ability to learn, adapt and change be comes a core competency for survival. The forces of technology, globalization and the emerging knowledge economy are creating a revolution that is forcing organizations to seek new ways to reinvent themselves (Asian Productivity Organization 2002: 1-4).
The maintenance of organization’s current assets and capabilities in a state of effectiveness for use in the actions which the organization is currently undertaking needs an effective knowledge management in the organization. Competence in bidding, cope with changing market, supporting the budget in the construction industry requires the high level of experience of the estimator or the estimating team. In course of time the lack of knowledge creation in the construction industry reduces the competency; consequently the organization may be ruined (Hurley, 2002, Lowe and Skitmore, 2001). Infact, the construction companies have to manage their knowledge for their survival in the competitive market as well as success in the various projects (Smith 1994:25, Kamara et al, 2002).
Mr. Mohammad Kamal Hossain made this research to (1) study what knowledge must be created to support the estimating process; (2) study about the different activities used to create knowledge i.e., how to create the knowledge related to the estimating process; (3) study about the effectiveness of the knowledge creating activities for creating knowledge to support the estimating process in the existing practice; and (4) find out the problems due to implementation of the knowledge creating activities.
Conclusions
1. Knowledge Creation for Estimating Process.
Survey and data analysis revealed that several kinds of knowledge were found to be created to support the estimating process. The feature of this knowledge creation is given below.
- Various types of knowledge must be created to support the estimating process.
- The most types of the knowledge represented to the respondents were considered by them to be created to support the estimating process. For example, “Knowledge of understanding and developing method of construction” was considered to be created by all the respondents.
- Only the ‘knowledge for preparing the preliminary estimate in various methods’ was not considered to be created to support the estimating process by the major portion of the respondents.
- The respondents were also asked about any kind of knowledge they considered out of the questionnaire, but they did not mention anyone.
2. The Knowledge Creating Activities Used in Construction Industries
There are various kinds of tool used for creating knowledge. After the interview and survey it was found that, in the existing practice Group Discussion, Training, Previous Project (following previous projects), and Recruiting were used to create these knowledge. It was observed that only these four activities were used to create knowledge for estimating process.
Against each type of knowledge related to the estimating process the usage of these four activities (which activities they used to create the knowledge) was calculated. The analysis shows that;
- To create the knowledge, some knowledge creating activities were used.
- Only certain types of activities (only four activities) were used by the companies.
- Different type of knowledge was created by using different activity.
- In most of the cases a company chose only a particular type of knowledge creating activities to create a particular type of knowledge.
- For any type of knowledge related to estimating process can be created by one activity or more than one activity. For example, according to this study “Knowledge of understanding and developing method of construction” can be created by Group Discussion, or, Training, or Previous Projects.
- For any type of knowledge the companies used only two or three types of knowledge creating activities. They can improve it by using more knowledge creating activities to create a particular type of knowledge.
A correlation test between the knowledge creating activities was also performed to observe the trend and behavior of these activities towards each other. The result showed that no activity was found as significantly positively correlated among the knowledge creating activities (between any two activities); but many of them were found as negatively correlated. It means if the companies used more an activity (of which activities were negatively correlated) then they trend to use less the other activity and vise versa. For example, for creating “Knowledge of understanding and developing method of construction”, the used activity Group Discussion and Previous Project is negatively correlated by their frequencies. This means the companies used more Group Discussion trend to use less Previous Project to create this knowledge and vise versa.
3. Effectiveness of the Knowledge Creating Activities
The effectiveness of the knowledge creating activities for creating any type of knowledge related to estimating process was measured by making correlation between the knowledge creating activities and the success factor of the companies. The frequencies of usage of the knowledge creating activities were correlated with the success factor of the companies. Which activity showed the positive correlation with the success factor was considered as the more effective means. Success factor of each company was determined by the cost ratio of some projects completed by the company. Success factor of different companies were not equal.
Different activity was found effective for different type of knowledge i.e., the effectiveness of these activities varies for different type of knowledge (see table 5.1). For example, “Knowledge of understanding and developing method of construction” can be created by Group Discussion, or, Training, or Previous Projects. But in this case, Previous Project is more effective than Group Discussion or Training.
For some categories of knowledge no activity was found as more effective activity among the activities used by the respondents in the current practice. But the knowledge is created by using some knowledge creating activities which was already determined.
If one of the knowledge creating activity is determined as more effective than others for create any type of knowledge then it is better to use the activity more to create the knowledge. In the given example as the activity Previous Project is more effective than others. So Previous Project can be used more by reducing the use of Training or Group Discussion to create that type of knowledge.
4. Problems Occurred due to Implementation of These Knowledge Creating Activities
Various types of problem occurred due to implementation of these knowledge creating activities. Some problems occurred by the employees of the companies and some problems occurred by the management body of the organizations. There were some problems for which either organization or the participants were not responsible. The problems due to all knowledge creating activities were listed separately. Problems occurred for each type of knowledge creating activities is given in the table below.
Problems occurred due to implementation of these knowledge creating activities varies with the different type of knowledge creating activities.
This means the problems occurred were different for different types of knowledge creating activities. Problem also varies with different type of knowledge also.
His thesis abstract is copied and posted.
Abstract
There is a risk in the estimation of construction project. To complete a project successfully on time and budget the risk has to be identified and minimized, and the estimate must be highly accurate. Since the estimate is one of the important parts of construction process, it is either the first step of toward a successful and profitable project or the first step towards the disaster. Therefore, to make a profit margin and survive in a competitive business market it is necessary to produce an estimate with high degree of accuracy. In such type of estimate with high degree of accuracy the sum of the money sets a bottom line for the firm to carry out the work and to reach an earn value of the project to make it profitable. To produce an accurate estimate the relevant persons involved with the estimating process must have the proper knowledge to support the estimating process. This knowledge to support the estimating process must be created throughout some knowledge creating activities undertaken by the construction organization.
Hence, the purposes of this study are to find out the knowledge which must be created to support the estimating process, the methods of knowledge creation, the effectiveness of the knowledge creating methods, and the problems occurred due to implementation of these knowledge creating methods. However, the research was limited only construction firms (contractors) located in Dhaka city area. The data collection was conducted using interview and questionnaire survey in the construction firms.
This means the problems occurred were different for different types of knowledge creating activities. Problem also varies with different type of knowledge also.
His thesis abstract is copied and posted.
Abstract
There is a risk in the estimation of construction project. To complete a project successfully on time and budget the risk has to be identified and minimized, and the estimate must be highly accurate. Since the estimate is one of the important parts of construction process, it is either the first step of toward a successful and profitable project or the first step towards the disaster. Therefore, to make a profit margin and survive in a competitive business market it is necessary to produce an estimate with high degree of accuracy. In such type of estimate with high degree of accuracy the sum of the money sets a bottom line for the firm to carry out the work and to reach an earn value of the project to make it profitable. To produce an accurate estimate the relevant persons involved with the estimating process must have the proper knowledge to support the estimating process. This knowledge to support the estimating process must be created throughout some knowledge creating activities undertaken by the construction organization.
Hence, the purposes of this study are to find out the knowledge which must be created to support the estimating process, the methods of knowledge creation, the effectiveness of the knowledge creating methods, and the problems occurred due to implementation of these knowledge creating methods. However, the research was limited only construction firms (contractors) located in Dhaka city area. The data collection was conducted using interview and questionnaire survey in the construction firms.
