Identification of Factors Leading To Construction Project Success Using Principal Component Analysis
Construction industry is the second largest industry in India after agriculture. It is highly competitive and involves number of parties, various processes and different phases of work. The study of success factors is to improve the effectiveness of the project and overall performance of the same. The most significant success factors obtained for Indian scenario are effective project control and management, labour productivity and scheduling, multi disciplinary and effective communication, financial capability and clients input, resource planning and accurate design and competency of participants and proper method of project delivery.
Identification of Factors Leading To Construction Project Success Using Principal Component Analysis
Construction industry is the second largest industry in India after agriculture. It is highly competitive and involves number of parties, various processes and different phases of work. The study of success factors is to improve the effectiveness of the project and overall performance of the same. The most significant success factors obtained for Indian scenario are effective project control and management, labour productivity and scheduling, multi disciplinary and effective communication, financial capability and clients input, resource planning and accurate design and competency of participants and proper method of project delivery.
1 Assistant Professor, Department of Civil Engineering, Symbiosis Institute of Technology, SIU, Pune, India. 2, 3, 4 Undergraduate scholars, Department of Civil Engineering, Symbiosis Institute of Technology, SIU, Pune, India.
Abstract
Construction industry is the second largest industry in India after agriculture. It is highly competitive and involves number of parties, various processes and different phases of work. Construction is a risky business and construction companies have to consider factors that have significant effect on their success. It requires a high degree of planning, organization to progress smoothly. The study of success factors is to improve the effectiveness of the project and overall performance of the same. The factors can help the project parties to achieve their goals in an efficient manner. From the works reported in literature, nineteen significant factors leading to success of construction project have been identified. A questionnaire survey is conducted with various groups of project participants namely contractors, consultants and owners. Statistical analysis of questionnaire responses is done using Principal Component Analysis (PCA) tool from XLSTAT software. PCA identifies six distinct set of success factors. The most significant success factors obtained for Indian scenario are effective project control & management, labour productivity & scheduling, multi disciplinary & effective communication, financial capability & clients input, resource planning & accurate design and competency of participants & proper method of project delivery. The impact of the identified factors is expected to guide the project team in addressing the process of construction in an effective manner.
Keywords: Construction project, questionnaire survey, principal component analysis, project success factors.
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INTRODUCTION Project success is almost the ultimate goal for every project. Achieving success is a highly critical issue for the companies to survive in a competitive business environment. The construction industry is also an area where there is strong competition and the study of factors affecting construction project are an aid of measuring project success (Terry C., 2002). Construction industry is dynamic in nature due to the increasing uncertainties in technology, budgets and development processes. Nowadays, building projects are becoming much more complex and difficult. The project team is facing unprecedented changes. The study of project success and the critical success factors are considered to be a means to improve the effectiveness of project (Walid B., et al, 1996). However the concept of project success has remained ambiguously defined in the mind of the construction professionals (Albert P.C. et al, 2004). Various attempts have been made by different researchers to determine success factors in construction. A number of variables influencing project success have been found. Some variables are common to more than one list, but there is no general agreement on the variables. An attempt has been made to identify critical success factors using statistical multivariate data analysis called principal component analysis.
1.1 Literature review The term Critical Success Factors (CSF) is defined as factors predicting success of projects (Albert P.C. et al, 2004). Literature review has been conducted to generate a set of factors believed to affect project performance. Project management action is a key for project success which defines the scope of procurement as the framework within which construction is brought about, acquired or obtained. Therefore attributes used to measure this factor; are procurement method selection of the organization for the design & construction of the project and tendering method procedures adopted for the selection of the project team and in particular the main contractor (Albert P.C. et al, 2004). Top management support is essential for achieving desired quality mainly on account of four issues. It is the top managements prerogative to set all the policy issues and control resources. In addition, top management arranges training of human resources involved in the project (Jha K.N et al, 2006). Proper monitoring and timely feedback help in controlling the workmanship and they enhance the quality of a project. If each part of the activity of a project is monitored effectively and instances of poor workmanship and improper usage of resources are reported promptly, it aids in achieving the desired quality level (Enhassi A. et al, 2009). Committed participants stick to the quality plan and they follow the accepted technical practices to carry out the different project activities (Terry C., 2001). The owners play an important role in achieving the desired quality level. Not only are they responsible for the preparation of a clear and unambiguous specification, but they also monitor the actual work at the site. It is well recognized that having the clients inspectors work with the contractor to establish good quality control procedures before the work is done (Niringa G. et al, 2013). Any relaxation in quality performance can set a bad precedence. Thus competence of the owner plays a prominent role in defining the expected level of Identification of Factors Leading to Construction Project Success 4171
quality from the contractor organization; hence the factor truly justifies its importance (Jha K.N. et al, 2006). A compatible work environment affects the success of a construction adversely. A good work environment not only increases productivity but it also affects the project quality. In addition, good climatic conditions give rise to a better workforce, leading to a better quality project (Albert P.C. et al, 2004). Project delivery method refers to the owners approach in organizing the project team that will manage the entire design and construction process. There are mainly three categories of delivery methods: traditional design-bid-build, design-build and construction management. The choice of the appropriate delivery method is a key decision that has to be made by owners early in the project lifecycle. This decision has a great impact on project success (Sameh Monihir, 2007). Various researchers support environment as a factor affecting the project further described environment as all external influences on the construction process, including social, political, and technical systems. The attributes used to measure this factor are economic environment, social environment, political environment, physical environment, industrial relation environment, and level of technology advanced (Albert P.C. et al, 2004). Labour productivity and vocational training on site is an important determinant of productivity growth (Sandbhor S. et al, 2014). Effective communication system between all the project participants is the inputs to the project management system that directly increase the likelihood of achieving project success. Proper allocation of resources in all the phases of the project helps us to utilize only that much resources which are required (Walid B., 1996). Accurate estimation of initial cost can help prevent the occurrence of cost overruns in construction projects as observed in the construction industry of UK. Therefore, the research identified CSFs that have an influence in the cost performance of projects. (Susana G. Arcila, 2012). The goal of design planning is to gain key insights or unique essential truths resulting in more holistic solutions in order to achieve better experiences for users with products, services, environments and systems they rely upon (Pakseresht A. et al, 2012). Timely client consultation is an excellent initiative for both consultancies and clients alike. It provides a mutually beneficial framework so that the client/consultancy journey is as effective, smooth and profitable as possible (Godwin I., 2011). Equipments and tools have an advantage over manpower resource as it can work under adverse circumstances continuously, requires less manpower and other facilities. The selection and utilization of equipment in a project must be an integral part of the total plan. The type and number of the equipments required in any project depends on the nature of the project which significantly affects construction cost (Robert L., et al, 2000). Proper planning and scheduling of each activity is effective for completion of project in terms of time and cost (Scott J., 1982). Based on the literature survey and discussion with experts located across India, a total of nineteen variables have been finalized for further analysis. These nineteen variables are as shown in Table 1 below.
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Table 1: Variables identified for the study
Sr No. Variable Nomenclature 1 Labour productivity and vocational training V1 2 Effective communication systembetween all the project participants V2 3 Proper allocation of resources in all phases of the project V3 4 Proper planning and scheduling V4 5 Clear, realistic and well framed goals V5 6 Accurate estimation of initial cost V6 7 Efficient project manager V7 8 Financial capability of the owner V8 9 Appropriate project delivery method V9 10 Good health and safety conditions V10 11 Multi-disciplinary project team V11 12 Environmental factors like climate and topography V12 13 Availability and maintenance of tools and equipments V13 14 Characteristics of participants involved V14 15 Regular monitoring of project V15 16 Competency, commitment and motivation of team V16 17 Timely client consultation V17 18 Duration of defect liability period V18 19 Accurate design and drawing V19
1.2. Principal component analysis Principal component analysis is a canonical and widely used method for dimensionality reduction of multivariate data (Andreson E. et al, 1999). PCA finds an underlying dimension that explains the correlation among a set of variables (Malhotra N. et al, 2011). It is a method that projects a dataset to a new coordinate system by determining the eigenvectors and eigen values of a matrix. It involves calculation of a covariance matrix of a dataset to minimize the redundancy and maximize the variance. PCA is concerned with finding the variances and coefficients of a dataset from the eigenvalues and eigenvectors. PCA is a widely used mathematical tool for high dimension data analysis. Just within the fields of computer graphics and visualization alone, PCA has been used for face recognition, motion analysis and synthesis, clustering, dimension reduction, etc (Jeong D.H. et al., 2008). The study attempts to apply PCA for identification of factors leading to construction project success. Factor analysis is useful for finding clusters of related variables and thus ideal for reducing a large number of variables into a more easily understood framework.
1.3. Research methodology A questionnaire survey has been designed by incorporating the 19 factors leading to construction project success. The questionnaire is divided into two parts. The first part requests background information about the respondents. The second part of the Identification of Factors Leading to Construction Project Success 4173
questionnaire focuses on factors considered to find their affect on the project success. In the survey, the proposed success factors are rated by construction professionals and experts who have project management knowledge and related experience. The questionnaire askes to rate the variable on a five point liker scale with 1 representing not significance, 2 slight significance, 3 moderate significance,4 very significance and 5 for extreme significance . The questionnaire has been distributed either personally or via e-mail to members of top and middle management with experience of 10- 35 years in various construction companies. The sample size collected is 50. Opinions of the experts have been used to further analyze the importance of these factors and their co-relation with each other using analytical tool of PCA in software package called XLSTAT-Pro (version 2014). The XLSTAT statistical analysis add-in offers a wide variety of functions to enhance the analytical capabilities of Excel and helps to perform multivariate data analysis.
2.0. PCA USING XLSTAT 2.1 Tests for sample adequacy & correlation criteria PCA using XLSTAT identifies factors which represent underlying dimension that explains the correlation among a set of variables (Malhotra N. et.al, 2011). Kaiser Meyer-Olkin (KMO) measure of sampling adequacy tests whether the partial correlations among variables are small. It should be greater than 0.5 for analysis to proceed (Jolynne P., 2008). For the present analysis the KMO measure of sampling adequacy is 0.661 which shows that collected sample size is sufficient for further analysis. Bartlett's test of sphericity tests whether the correlation matrix is an identity matrix, which would indicate that the factor model is inappropriate (Jolynne P., 2008). The alpha option provides an effective tool for measuring Cronbach's alpha, which is a numerical coefficient of reliability. Computation of alpha is based on the reliability of a test relative to other tests with same number of items, and measuring the same construct of interest (Hatcher L., 1994). Cronbachs Alpha for the given sample is 0.863.The study shows that test has p-value less than 0.001 and hence rejects the hypothesis that the correlation matrix is an identity matrix. Table 2 below gives test results which indicate that the adopted method i.e. PCA is reliable for further analysis.
2.2 Determination of number of the factors to be retained The number of factors to be retained is determined on the basis of either eigen values or scree plot so that cumulative percentage of variance extracted by factors reaches a 4174 Sayali Sandbhor et al
satisfactory level. Factors extracted should account for at least 60% of variance (Malhotra N. et al, 2011).
2.2.1 Eigen Values greater than 1 Only factors with Eigen values greater than 1.0 are retained; the other factors are not included in the model (Malhotra N. et al, 2011). Table 3 shows the eigen values of factors which depict that first six factors have eigen values greater than 1 and hence should be retained.
2.2.2 Scree-plot A scree plot is a plot of eigen values against number of factors in order of extraction. The shape of the plot is used to determine the number of factors. The plot has a distinct break between the steep slopes of factors, with large eigen values and a gradual trailing of associated with the rest of the factors. This gradual trailing is referred to as scree. The point on which scree begins denotes the true number of factors (Malhotra N. et al, 2011). The rationale for this test is that a few major factors will account for the most variance, resulting in a cliff, followed by shallow scree depicting the consistently small error variance described by minor factors. Though it works well with strong factors, it suffers from ambiguity and subjectivity when there is no clear hinge in the depicted eigen values (Courtney M.G., 2013).
Fig. 1: Scree Plot
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2.3 Factor Pattern The factor pattern matrix consists of coefficients used to express the standardized variables in terms of factors. Table 4 gives the factor pattern and loadings. It is the correlation between a variable and a factor that has been extracted from the data. These coefficients the factor loading, represent the correlation between the factors and the variables. A coefficient with a larger absolute value indicates the factor and the variable are closely related (Malhotra N. et al, 2011). The table also shows the final communalities of all variables that are greater than 0.5. Amount of variance a variable shares with all the other variables being considered. This is also the proportion of variance explained by the common factors (Malhotra N. et al, 2011).
2.4 Rotation Once the total number of factors to be retained is finalized, rotation of these factors is carried out. Rotation is an inherent part of performing PCA. An important output from PCA is factor matrix which gives loadings or simple correlations of variables on the identified factors. Although the initial or unrotated factor matrix indicates the relationship between the factors and individual variables, it seldom results in factors that can be interpreted, because the factors are correlated with many variables (Malhotra N. et al, 2011). Rotation of factors in which the axes are maintained at right angle is called varimax rotation. The purpose of rotation is to achieve a solution 4176 Sayali Sandbhor et al
where each factor has a small number of large loadings and a large number of small loadings, simplifying interpretation, since each variable tends to have high loadings with only one or with only few factors (Basto M. et al, 2012). The goal of rotation is to simplify and clarify the data structure. A rotation can help to choose the correct number of factors to retain and can also help the interpretation of the solution. Results of varimax rotation are shown in Table 5 and Table 6. Table 5 gives total cumulative variance of 68.793% as explained by first six factors.
Table 5: Percentage of variance after varimax rotation
Table 6 shows the factor loadings on rotation which simplifies the interpretability of the factors and contributing variables. It also highlights the maximum loadings in a row for easier interpretations.
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3.0. Interpretation of factors Interpretation is facilitated by identifying the variables that have large loadings on the same factor (Dash S. et al, 2011). In Table 6, factor 1 has high loadings for variables F5 (Clear realistic and well framed goals), F19 (Accurate estimation and initial cost), F7 (efficient project manager), F10 (good health and safety conditions), F15 (regular monitoring, quality analysis and control on site). Factor 2 has high correlations with F1 (labour productivity and training), F4 (proper planning and scheduling), F12 (environmental factors). Factor 3 has variables F2 (effective communication) and F11 (multi-disciplinary project team) loading heavily. Factor 4 comprises of F18 (financial capability of the owner), F17 (timely client consultation).Factor 5 comprises of F19 (Accurate design and drawing) and F3 (proper allocation of resources).Factor 6 comprises of F9 (Appropriate project delivery method), F13 (Access, availability and maintenance of tools and resources), F14 (Characteristics of participants), F18 (defect liability period), F16 (Competency, commitment and motivation of team members). Now these factors are labeled according to the nature of group of variables forming it. As variables in Factor 1 represent effective project management, accurate estimation and goals, Factor 1 is labeled as effectiveness of project management and control. Similarly factor 2 represents labour productivity, proper planning with consideration to the environment; it may be renamed as labour productivity and scheduling. Factor 3 comprises of variables explaining importance of communication system and project team on site, hence labeled as multi-disciplinary and effective communication. Factor 4 comprises of financial ability and effective consultation by client and is labeled as financial capability and client input. Factor 5 is explained by accurate design and drawings and resource allocation, it is labeled as resource planning and accurate design and drawing Factor 6 comprises of proper project deliver method, duration of defect liability period, maintenance, of resources and tools, characteristics of participants commitment and motivation of employees, hence is named as competency of participants and proper method of project delivery. The summary of interpretation of factors is shown in Table 7 below.
V5- Clear realistic and well framed goals 0.665 Effective project control and management V6- Accurate estimation and initial cost 0.640 V7- Efficient project manager 0.747 V10- Good health and safety conditions 0.409 V15- Regular monitoring, quality analysis and control on site 0.581 Factor 2
V1- Labour productivity and training 0.748 Labour productivity and scheduling V4- Proper planning and scheduling 0.801 V12- Environmental factors 0.653 Factor 3 V2- Effective communication 0.643 Multi-disciplinary and effective communication V11- Multi-disciplinary project team 0.886 Factor 4 V8- Financial capability of the owner 0.848 Financial capability and client input V17- Timely client consultation - 0.496 Factor 5 V3- Proper allocation of resources 0.634 Resource planning and accurate design and drawing V19- Accurate design and drawing 0.810 Factor 6 V9- Appropriate project delivery method 0.717 Competency of participants and proper method of project delivery V13- Access, availability and maintenance of tools and resources 0.627 V14- Characteristics of participants 0.603 V16- Competency, commitment and motivation of team members 0.563 V18- Defect liability period 0.830
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4.0 CONCLUSION Identifying the factors leading to success of construction project is crucial to reduce the delay in construction. This study attempts to select variables from literature survey and discussion with experts. Studying the outputs from questionnaire survey by PCA using XLSTAT shows that six factors affect the success of construction project. The factors have been interpreted based on the variables comprising them. It is observed that effective project control & management, labour productivity & scheduling, multidisciplinary & effective communication, financial capability & client input, resource planning & accurate design and competency of participants and proper method of project delivery are the most important factors affecting success of construction project in India. Due attention to these factors and their study for Indian scenario will be helpful to contractors, owners and the project team on construction in making project related decisions. Due attention to these factors would lead to a successful project in terms of attaining the predefined project quality in stipulated time and budget.
References:
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