Langston, C (2023) The empirical relationship between contractor success and project innovation. Engineering, Construction and Architectural Management, 30(6), pp. 2231-2254. ISSN 0969-9988
Abstract
Purpose: Innovation during project delivery is contested space. The aim in this research is to empirically explore the theory of this contested space and how project implementation can be optimized by the contractor to deliver better outcomes. It is hypothesized that project innovation has a proportional and measurable relationship to contractor success. Design/methodology/approach: Based on a novel conceptual framework, this research applies a case study methodology to analyse 31 construction projects undertaken by a single Australian middle-tier contractor. Benefits from innovation are not often equitably shared. There are risks and rewards. The project innovation zone is defined as a combination of three key performance indicators – efficacy, efficiency and margin – merged into a single index that most likely shows evidence of “working smarter”. Findings: Client–contractor project innovation (c2pi) is demonstrated to be strongly correlated with head contractor success (HCS), yielding an r2 value of 71%. Innovative projects mostly show positive change in efficacy, efficiency and margin when comparing “planned” and “actual” outcomes. Across the cases studied, 35% demonstrated likely evidence of innovative delivery and 52% demonstrated evidence of success from the construction contractor's perspective. Originality/value: These findings verify that, within the studied sample, the pursuit of innovation leads to projects that are likely to also have greater success for the head contractor, evidenced by the mix of five critical success factors: finishing on schedule, making profit, and having less defects, less accidents and higher quality workmanship. These outcomes arguably also apply to sub-contractors, where the head contractor assumes the role of “client”.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | head contractor success; project delivery success; project innovation; value for money |
| Index terms: | project delivery, implementation, key performance indicator, case study, efficiency, evidence, sub-contractor, methodology, construction project, value-for-money, workmanship, critical success factor, conceptual framework, construction contractor, profit |
| Subjects: | research methods, performance management, theoretical framing, evaluation, production management, contractual condition, project delivery, economic analysis, contractual arrangements, evaluation and assessment methods, data collection methods, practitioner, control systems |
| Topics: | Value Management, Quality Management, Contract Administration, Research Practice, Project Management, Business Strategy, Procurement, Roles and Professions |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here