A new methodology for tracking the performance of subcontractors in the construction industry

Almohssen, Abdulaziz (2018) A new methodology for tracking the performance of subcontractors in the construction industry. PhD thesis, University of New South Wales, Australia.

Abstract

Forecasting the performance of subcontractors is fraught with difficulty. Any particular measurement will have both information about the subcontractors performance and also noise due to random effects. This thesis aims to present a methodology for separating the underlying performance from the noise in the measurements. A secondary aim is to examine how this affects the optimum time for updating historical records of subcontractors. A case study has been adopted to test this methodology using data collected from Saudi Arabia. Data was collected in two phases. The first phase involved interviewing experts in assessing subcontractors to explore the importance of tracking the performance of subcontractors, the most important performance factors, and the frequency of updating historical records. The second phase involved collecting data about subcontractors' performance from historical records. The results of the interviews show that different organisations focus on different factors, but they have strong agreement that work quality and safety are important. They also have different frequencies for updating their historical records, ranging from 1 to 5 years. The performance questions were classified also in two groups using factor analysis: management questions and technical questions. The expected change over time in subcontractors' performance was studied by using Markov chains. The noise content of these measurements was studied by comparing with hidden Markov models using the Baum Welch algorithm. A methodology was also provided that enables tracking of the loss of accuracy over time based on entropy. The results of the case study show that subcontractors improve over time in technical performance faster than in management performance. The updating time of the historical records based on the case study is recommended to be annually for technical questions and every two years for management questions. This research demonstrates that hidden Markov models provide a new strategy for forecasting subcontractors' performance and reducing the effect of randomness to be annually for technical questions and every two years for management questions. This research demonstrates that hidden Markov models provide a new strategy for forecasting subcontractors' performance and reducing the effect of randomness to increase accuracy. A limitation of this work is that it is based on a single case study.

Item Type: Thesis (Doctoral)
Thesis advisor: Davis, Steven
Uncontrolled Keywords: performance; construction; subcontractors; historical records; forecasting
Index terms: construction industry, factor analysis, case study, Saudi Arabia, forecasting, Markov chain, subcontractor, methodology, accuracy, strategy, entropy, interview
Subjects: prediction and forecasting, mathematical modelling, data collection methods, thermal systems, statistical analysis, industry analysis, management, professional development, practitioner, research methods, Geography
Topics: Sustainability, Geographical Context, Roles and Professions, Information Management, Research Practice, Business Strategy
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