Clients, project consultants, and construction contractors are the main contract participants in the Hong Kong construction industry. The research by Lai and Lam (2010) examined the divergent views of the contract participants in the industry. The aim was to establish the importance of performance criteria, in the construction companies (Lai & Lam, 2010). The authors developed a research performance model to examine the stakeholder’s perceptions and differences, on each performance criterion and outcome.
The study also examined the differences in performance criteria outcomes among clients, contractors, and consultants. The researchers interviewed 324 contract participants in the construction industry. The ANOVA analysis was used to evaluate the client, contractor, and consultant perceptions of performance criteria. Secondly, the analysis was used to establish the difference in performance criteria between the common participants.
The study established nine performance criteria and their importance, in evaluating the performance criteria and outcomes. Project consultants, clients, and contractors’ perceptions from different organizations were interviewed. The findings revealed the existence of differences, in the importance of the performance criteria among the contract participants. The authors found that the time criterion is the most important performance criterion for all contract participants, in the Hong Kong construction industry. Most of the construction participants prefer projects to be tracked faster fast-tracked. The project’s profit was ranked as the second performance criteria for the construction projects. The project participants ranked the environmental performance criterion in the third position. Quality, safety, project effectiveness, and lack of contractual disputes were ranked fourth, fifth, sixth, and seventh respectively. The project job satisfaction and generation of innovative ideas were ranked last.
The authors found that there are several differences in performance outcomes, among the contract participants. The project owners rated the timely completion of projects as the most important project performance outcome. On the other hand, contractors prefer a reasonable time for the construction projects. Clients and construction practitioners differ on the perception of the profit criterion. Clients focus on the project budget while the contractors concentrate on cost-saving. The authors identified significant differences in contractual disputes among clients, consultants, and contractors. The clients also plan for contingency allowances for projects claim, delays, and design changes. It is observed that clients suffer from contractual disputes, whereas contractors benefit. In addition, consultants are silent on the contract disputes.
The importance of the environmental performance criterion to the clients was less important as compared to consultants. The authors opine that clients, consultants, and contractors differ on their perception of project outcomes concerning job satisfaction, project safety, and the generation of innovative ideas. For instance, the clients are more satisfied with project safety than contractors. They do not see any danger of accidents, during the construction period. However, the authors find that there is no difference in perception of quality performance criterion among the participants.
The authors evaluate their research objectives and scientifically test the hypothesis. The article also provides authoritative information that clearly shows which performance criteria, the managers need to focus on improving the performance of the industry. It underscores the importance of performance perception criteria in the construction industry. The knowledge generated by the article is essential in enabling construction consultants, clients, and contracts to explore different ways of improving the performance of the construction industry in Hong Kong. The research findings are critical in breaking the performance criteria stand-off in the construction industry. In addition, the article is important in informing contracting participants on the important project performance criteria and outcomes.
Reference
Lai, I. K., & Lam, F. K. (2010). Perception of various performance criteria by stakeholders in the construction sector in Hong Kong. Construction Management and Economics, 28(4), 377-391.