Managing uncertainty in fast-track construction projects: Case study from South Africa

Laryea, S and Watermeyer, R (2020) Managing uncertainty in fast-track construction projects: Case study from South Africa. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 173(2), pp. 49-63. ISSN 17514304

Abstract

While academic researchers have proposed various theories for managing risk and uncertainty in construction projects, most of the propositions are conceptual in nature and based on analytical modelling approaches rarely used in practice. This research was triggered by an observation in which a R1·5 billion (~US$100 million) fast-track New Universities Project in South Africa was successfully delivered within budget despite up to 74% of the project scope not being capable of being priced by the contractor at the start of construction. The aim of this paper was to examine the client's delivery-management approach used to manage uncertainty and deliver within budget successfully. The evidence from document analyses and interviews with the client delivery-management team members shows that setting a rigorous control budget, designing to the budget, working collaboratively, disciplined management of the control budget and continuous value engineering were the key client management techniques used to manage the high degree of uncertainty and deliver the project within budget successfully. Given that these are client-led delivery-management issues, the findings fill an important gap in the knowledge and understanding of how infrastructure project outcomes can be significantly improved on when the client functions as the leader of the infrastructure delivery process.

Item Type: Article
Uncontrolled Keywords: contracting; procurement; project management
Index terms: interview, management issue, value engineering, infrastructure delivery, evidence, construction project, South Africa, case study, document analysis, project scope, project management, modelling, infrastructure project
Subjects: strategic project management, analytical methods, evaluation and assessment methods, scope management, Geography, production management, data science, data collection methods, value management, infrastructure and transport systems, management, project management theory and practice
Topics: Geographical Context, Project Management, Engineering Principles, Business Strategy, Cost Management, Research Practice
Descriptive scope: 4 PCEA

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