SSRN Id2260068

NICMAR Journal of Construction Management Volume XXVII No.
II&III, pp 38-52 [April-June & July-September 2012]
Determinants of the Success of Real Estate Projects:

A Study of Select Firms in Hyderabad
N. Ramakrishna†‡M. Aswin Kumar*, D. Vivek Kumar* and G. Arun Kumar*§
Abstract
Real Estate sector has been growing at a rapid pace in India during the last decade and a large number of
construction projects have been completed in India. Much of the commercial construction activity has been
driven by Information Technology (IT) sector, especially in a city like Hyderabad, where the demand for
residential house construction has also been coming largely from its employees. This IT-led construction boom has
also been experienced in several cities of India. Given such strong demand, it is important to know how the
construction companies are coping with the pace by successfully completing the projects. The insight of factors
that lead to successful completion of projects is useful to Project managers in real estate sector. In general, many
companies consider Cost, Time, Quality and Performance as main elements for the success of a project. There
are many other factors, either primary or secondary, that have a place to play an important role in achieving a
project success. This paper deals with exploring the factors that contribute to achieving project success. It is
confined to residential and commercial housing sector in Hyderabad. A structured questionnaire is applied to
find the factors determining success in relation to Client, Consultant and Contractor. This helps in
understanding the major factors determining project success which can be useful to the project managers as they
can be applied to new/ ongoing real estate development projects.
Key words: Real estate development, Construction projects, Project success, Determinant factors and Project
management
BACKGROUND
Indian real estate industry has been witnessing some vibrancy and upbeat market sentiments after
steep corrections during the global financial crisis in 2008-09. Global economic performance is
improving and so are the prospects of Indian businesses. With the Indian economy expected to grow
at the rate of approximately 8 to 8.5% during the current year (2011-2012) the real estate sector in
India is now on a gradual improvement curve. Accordingly, several segments of real estate
development/ construction have been witnessing rapid progress.
Residential Segment makes up most of the real estate industry of the country. Growth in this
segment is primarily driven by increasing urbanization, rise in the number of white-collar
professionals and rising incomes, etc. The residential segment is again witnessing growth in demand
for luxury and super-premium homes among the globe-trotting executives, new and successful
businessmen, non-resident Indians (NRIs), etc. However, this sub-segment is currently experiencing
low volumes due to steep price rise and hike in interest rates; this may be a short-term lull and, with
minor corrections, the segment may continue to grow.
†
Associate Professor, Construction Industry Staff College of NICMAR, Hyderabad
§
Post Graduate Students of Advanced Construction Management, CISC of NICMAR, Hyderabad
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NICMAR Journal of Construction Management Volume XXVII No. II&III, pp 38-52 [April-June & July-September 2012]
Commercial Real Estate Segment, which primarily comprises office space, is growing in tandem with
the country's booming economy. The demand for office space is driven by the influx of
multinational companies and growth in services sector. Overall, on pan-India basis, the demand for
office space is expected to total 180 million sq ft by 2013, with seven major cities (Bangalore,
Chennai, Hyderabad, Kolkata, Mumbai, the NCR and Pune) catering to 75% of total demand.
Much of this growth is attributed to the rise in IT and ITES sector that has been witnessed by the
above cities.
Although the Retail Real Estate Segment has a smaller pie in the real estate industry, it is growing
rapidly and the demand for good quality mall space is fuelled by the growth in organized retail and
the entry of international retailers into India. Over the past few years, retail has become one of the
fastest growing industries in the country. Increasing disposable incomes, rising consumption and
shopping convenience have been driving the growth of organized retail. The retail industry is
expected to reach US$637billion by 2015, with organized retail accounting for 14 to 18% share.
However, the rental market in Indian retail segment is yet to stabilize, as supply continues to outstrip
demand.
The Hospitality Segment has also been witnessing a robust demand, primarily due to a strong growth
in tourism, including business and leisure travel. According to research conducted by the World
Travel & Tourism Council, travel and tourism (WTTC) in India is expected to grow at 12.7% till
2019. India is emerging as a major tourist destination for international tourists. Foreign Tourist
Arrivals (FTAs) in India have increased at a CAGR of 7.7% between 2000 and 2010 to reach 5.5
million. During the same period, foreign exchange earnings from tourism increased by a CAGR of
more than 15% to Rs 648.8 billion.
The Long-Term View for Indian Real Estate Sector is Positive since its fundamental demand drivers -
increasing urbanization, favorable demographics, growth of services sector and rising incomes are
still intact. Due to the demand from foreign investors and the growing economy, Indian
construction industry experiences strong growth. While some of the construction projects are
successfully executed, others faced difficulties. Therefore, it is pertinent to examine the factors that
lead to successful completion of real estate development/ construction projects in India.
INTRODUCTION
A construction project is completed as a result of a combination of many events and interactions,

planned or unplanned, over the project life cycle, with changing participants and processes
(Prasanna Chandra 2005). Project managers face increasing challenges today in their project
management tasks. The environment has become more dynamic with increasing uncertainties in
technology, budgets, and development processes. Thus project managers increasingly need tools for
monitoring and feedback that enable a proactive response to troubled areas. Additional progress is
needed in the identification and measurement of determining factors for project success. There are
few topics in the field of project management that are so frequently discussed and yet so rarely
agreed upon as that of the notion of project success.
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Attempts to predict construction duration and understand the successful implementation of

construction projects represent a problem of continual concern and interest to both researchers and
project managers. In general, the concept of project success has remained ambiguously defined both
in the project management literature and the minds of project managers (Bryde 2008, Frese 2003,
Atkinson 1999). Many project managers attend to these success factors in an intuitive and ad hoc
fashion as they attempt to manage and allocate resources across various project areas. What is
needed is a more refined and specific model of these success factors and their interrelationships.
Also required is a systematic approach to the measurement of these factors to assist managers in
allocation of resources and early detection of problem.
It is well established that the cost, quality and time constitute major part of success criteria of
construction projects that are commonly known as „iron triangle‟ (Atkinson 1999). However, proper
planning lays the groundwork for any successful work-in-progress. The factors that affect a project's
success are very consistent and some of them include knowledge, preparation, organization,
leadership, teamwork, timeliness and effective conclusion. Each one of these factors is equally critical
to the successful outcome of any worthy undertaking, and all should be taken very seriously.
Examine each of these factors one by one to see how they compare to where you are in your project
management. However, it is expected that each industry sector will have different approach and,
therefore, will have different factors and parameters that determine success of the projects (Coll
2002).
The Study
The aim of this study is to examine the factors that lead to successful outcome of real estate
development/ construction projects. The main objectives of the study were:
 To identify the factors and parameters of project success
 To gauge the factors and parameters of success of real estate development/ construction
projects
 To determine the principal factors and parameters determining project success
Data were collected using the structured questionnaires sent to major participants of real estate
development/ construction projects in Hyderabad. In general, many companies consider Cost,
Time, Quality and Performance as main elements for the success of a project. However, there are
several other factors and parameters that actually determine the outcome – success or failure – of a
construction project. Here, project performance is a function of the characteristics of the client, the
project, the project team leaders, project procedures, managerial actions and project environment.
This research study is expected to give clients, designers, and contractors of valuable insights on how
they can consistently achieve success in their projects. Information of the research study could be
used in:
 Selecting project team members,
 Identifying the development needs of the project team members,
 Designing the content of management education programs for project managers,
 Forecasting the performance level of a construction project before it commences.
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Structure of The Paper

The current section gave an introduction to Real Estate sector in India, the project success factors
and the aim/objectives as well as usefulness of the study. In the next section, we develop various
measures of factors and parameters affecting a project success that are considered in current study.
These factors and parameters form the core of the analysis performed in identifying the important
ones. The data collection methodology is explained subsequently. The independent variables of each
parameter assumed to be associated with the project success are listed. The key hypotheses tested are
also stated. The results and findings from the analysis of sample data are finally presented alongwith
the conclusions and implications of the study towards the end of paper.
FACTORS AFFECTING PROJECT SUCCESS
Literature Review
Construction project success is repeatable. Attempts to predict construction duration and
understand the successful implementation of construction projects represent a problem of continual
concern and interest to both researchers and project managers. Predicting construction time and
identifying the principal factors leading to project success is becoming vital to the success of
construction projects. The aspect of project success determinants is given attention in the recent past
in the wake of declining demand for real estate construction projects worldwide (Bryde 2008,
Cooke-Davies 2002). However, there are few studies based on the empirical data collected, especially
when it comes to the Indian real estate and construction sector except few like Pundir (2011) and
Diwakar and Subrahmanyam (2009).
Various attempts were made by different researchers to determine critical success factors in
construction (Belassi and Tukel 1996, Chan and Kumaraswamy 1997). The literature abounds with
lists of variables supposedly influencing the success of project implementation (Dimitros 2009,
Mensah 2007). There are some variables common to more than one list, but there is certainly no
general agreement on the variables (Frese 2003, Cooke-Davies 2002). Review of previous research
reveals some common threads of variables as affecting the success of a project (Mubila et al 2000).
The Approach of Current Study

Based on the literature and in consultation with industry professionals, the factors and parameters
affecting project success are identified. In the subsequent sections, these factors and parameters of
project success are discussed under the following broad groups:
 Client Objectives
 Core competency
 The Project Environment
 The Project Team leadership
 The Managerial Actions
Client Objectives
Client objectives often have impact on the project performance and the following parameters have
been used to understand their role in success
1. Low construction cost
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2. Quick construction time

3. High Quality of construction
4. Any Other Parameter
Core Competency
(a) Client’s Competency: Client‟s competency give an idea of the knowledge of the project, in pre-
contract design and documentation process, where the client should be fully conversant with the
requirements of the finished building, consequently reducing the level of errors and omissions
leading to variations and disputes.
Client‟s competency is a critical factor affecting project success, and the following attributes are used
to measure it:
 Ability to effectively brief the design team
 Ability to quickly make authoritative decisions
 Ability to effectively define the roles of participating organizations
 Ability to contribute ideas to the design process
 Ability to contribute ideas to the construction process
(b) Consultants Competency: Consultant competency is also a critical factor affecting project
success, and the following attributes are used to measure it:
(c) Contractor’s Competency: Contractor competency is also a critical factor affecting project
success, and the following attributes are used to measure it:
Project Environment: Environment has all external influences on the construction process. Broadly
they may be grouped as physical, economic, socio-political and industrial relations. They may act at
national or local level, and in different ways in the Public and private sector.
Physical Environment: The construction industry has for long been known for its heterogeneous
characteristics. There is no permanent set up for its plant and equipment. The physical environment
and the location where the project is taking place will pose unique planning and organizational
problems to the project and found that the materials management function on a city centre contract
is both extensive and comprehensive. Geographical factors, the influence of location, and specifically
problems associated with remote sites or distance from transport infrastructure facilities may also

influence construction performance. The effect of these influences must be considered and
appropriate managerial action taken with due consideration of the degree of risk involved.
Economic Environment: The economic environment directly affects individual projects through
access to, and quality of, available resources. Public and private construction projects are financed
from capital reserves or loans, very largely as a form of investment. The availability of funds is
regulated by dependable revenue. Thus, in optimistic periods, clients may anticipate a need for
constructed facilities. Conversely, periods of recession may adversely affect the need or ability to
fund construction works. Inflation offers some incentive for capital investment in construction.
Construction projects may be halted by company insolvency affecting builders originally engaged
upon a project or builders taking over a project that has been affected by company insolvency
highlighted "labor shortages, low and erratic resourcing by subcontractor" as one characteristic of
poorly performed projects.
Socio-political Environment: Political instability and popular unrest has a high potential for
disruption of planned construction progress. Legislation such as Occupational Health and Safety Act
can have a major impact upon construction methods and materials used. The socio-political factors
may influence the construction market in several manners. Decisions on the priorities of the
government expenditure will affect the construction market, directly where expenditure cuts or
changes in emphasis affect specific projects, and indirectly by influencing the level of demand for
materials and other resources. Changes in the structure and the needs of community will create a
demand for building. Demographic change can alter the need for housing, schools and jobs.
Alterations in the structure and tastes of society can influence the type of facilities needed.
Industrial Relations Environment: A hostile industrial relations environment can pose a significant
threat to the management. This threat can create real problems to the real estate development/
construction industry. The way in which industrial disputes are settled form an infrastructure for
dealing with conflict. If this infrastructure provides for a speedy resolution of conflict where all
parties can settle their differences without duress, then the industrial relations environment can be
seen as favorable. An unfavorable industrial relations environment exists where all parties are not
satisfied with the conflict resolution procedures. In these cases, grievances will be re-directed into a
variety of behavior and attitudes. Amongst these disruptive forms of behavior some may include:
strikes and lock-outs, work to rules, boycotts, work bans, demarcation and other work limitations,
political actions, sit-ins, absenteeism, alcoholism, poor health, low morale and productivity, material
wastage, slackness and inefficiency, go-slows, sabotage and high labor.
Project Team Leadership

The project team in the real estate development/ construction industry is that group of construction
professionals and personnel from one or more organizations who combine to fulfill necessary design,
detailing and construction functions comprising a construction project. The management of
construction projects involves many diverse groups, client, designers, suppliers, sub-contractors, the
construction management team and client consultants responsible for advising on progress in terms
of time, cost and quality. The performance of the team depends to a large extent on the skills and
experience of several key project team leaders: including the client representative, the design team
leader, and the construction team leader.
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A strong tendency of clients is to employ some form of internal project management set-up coupled
with the extensive use of consultants. This set up normally takes the form of the client's project
manager. The project manager works on behalf of the client and would be involved with the client
right from inception, through feasibility stage, design stage, etc, to completion of the project. Their
roles and responsibilities are crucial to the success of a construction project. The project manager
goal commitment and project manager technical capabilities would bring about significantly
different project outcomes.
Effectiveness of the Design Team Leader

Project success does get determined by the relationship between design team and its leader and
project success may result from:
 A resourceful and knowledgeable professional team ensuring that the client's requirement brief
is thorough, properly implemented and monitored.
 Highly experienced professionals keeping the client constantly informed of the well-being and
progress of the project - such that any deviation or problem can be dealt with quickly and
effectively to achieve higher level of client satisfaction and a smooth running project.
Effectiveness of the Construction Team Leader

High construction team performance results in high construction time performance and low
construction team performance results in low construction time performance.
Measures of Project Team Performance

The performance of the project team can be assessed by the technical and managerial skills, working
relationship and attitude, and support from their parent companies construction project. The
following attributes are used to measure the same:
 Technical skills of the project team leaders
 Planning skills of the project team leaders
 Organising skills of the project team leaders
 Coordinating skills of the project team leaders
 Motivating skills of the project team leaders
 Project team leaders' commitment to meet cost, time, and quality
 Project team leaders' early and continued involvement in the project
 Project team leaders' experience and capabilities
 Project team leaders' adaptability to changes in the project plan
 Support by project team leaders' parent company
 Provision of resources from project team leaders' parent company
 Project team leaders' working relationship with others
Managerial Actions
The managerial system is primarily concerned with decision making for planning and controlling
organizational endeavour. An integral element of the managerial task is organizational decision
making - choosing an overall strategy, setting specific objectives, designing structures and processes,
selecting people, delegating responsibility, evaluating results and initiating changes.

The degree of project management actions is reflected in the range and type of control mechanisms
set up for a particular problem. At one end of the range will be a very low control situation, where
neither professional design team, nor drawings, specifications and documentation nor standard form
of contract exists. Minor works may fall into this category. On other hand a high control situation
may exist if detailed documentation is administered through a system of regular monitoring and
inspection.
Previous Researches concluded that managerial control (classified as project management actions) is
a key element in achieving project success, being significantly related to all measures of success. Some
other researchers found similar results for managerial action and concluded that high level of
administrative ability in the project team leads to reduced time overruns which in turn leads to
increased satisfaction and that construction time performance is directly affected by the construction
management team's managerial performance.
Project management action variables measured in this study

It is hypothesized that project management actions are crucial to the success of a construction
project and the following attributes are used to measure this factor:
 Communication system for the project
 Up-front planning efforts
 Monitoring and updating plans
 Developing an appropriate organisation structure
 Control of subcontractors' works
 Implementing an effective safety program
 Development of a good reporting system.
 Implementing an effective quality assurance program
 Holding of regular meetings
 Development of standard procedures
 Overall managerial actions
DATA COLLECTION, ANALYSIS AND HYPOTHESES
Data Collection
Data collection was planned to be through a primary survey using Structured Questionnaire to be
sent through electronic mail first and then follow-up personal visits to different project sites of target
real estate development/ construction firms. Only large firms with established repute and located in
Hyderabad were targeted and, therefore, the target sample size remained small to about 10-15 firms.
The questionnaire has the following categories/ headings:
 Client Objectives
 Client competency Measures
 Project Environment
 Project Team Leadership
 Managerial Actions

Out of the target sample size, a sample of 10 firms was chosen for the follow-up through personal
visits and discussions with concerned units; yet, we have received full response from only 5 real
estate development firms. It is after continuous liaison and follow-up that the information was
obtained from the respondent firms in response sheets. The questionnaires were sent separately to
clients, contractors and consultants. The response data are shown in Annexure.
The responses were recorded on Rensis Likert scale that has been adopted for rating in which rating
1-Very low, 2-Low, 3-Average, 4-Good, 5-Very Good. P1, P2, P3, P4 and P5 are project sample
(Project names are not displayed due to the request of companies). The sample responses have been
tabulated and presented in Annexure I.
Data Analysis
The analysis of data obtained from the questionnaire survey was performed to understand the
factors and parameters that were perceived as important by the respondents. As there were three
categories of respondents – Client, Contractor and Consultant – for each project, each of them may
assign different order of importance (or rank). It was therefore decided to perform hypothesis
testing using pair-wise comparison of rankings among respondent categories (of the assigned
scores/ranks) so as to identify strong parameters with appropriate direction of relation between
them. Further, given the ordinal responses from the sample, Spearman‟s rank correlation test was
considered appropriate. Statpro (2009) software was used for data analysis.
Spearman rank correlation coefficient indicates both (i) the strength of association (with coefficient
of 1 indicating strong relationship and 0 indicating weak/no relationship) and (ii) the nature of
relationship (- indicating negative direction of association and + indicating positive direction of
association). This coefficient gives a measure of the importance attached to parameters by the above
three categories of respondents (measured in pair-wise or one-to-one comparison).
Hypothesis Testing
The following hypotheses are tested in data analysis:
(a) Client Objectives:

Null Hypothesis (H0): Consultant and Contractor rankings show strong positive association
(b) Core Competence Measures:

Null Hypothesis (H0): Client and Contractor rankings show strong positive association
(c) Project Environment:

(d) Project Team Leadership:


(e) Managerial actions:

The acceptance of hypothesis is based on strength (in terms of coefficient greater than 0.5) and
direction (in terms of negative or positive sign) of correlation.
RESULTS AND INFERENCES
The results of data analysis on the lines discussed above are shown below in the Tables 1-5 and the
inferences that can be drawn are also discussed along with them.
Table 1: Client Objectives
Consultant Vs Contractor
S. No Parameter
(Spearman’s Coefficient of Correlation)
1 Low Construction Cost 0.35
2 Quick Construction Time 0.475

High Construction
3 0.625
Quality
It can be observed from Table 1 that Construction quality (Parameter 3) has been rated as highest
order of priority consistently followed by Quick Construction Time and lastly low construction cost.
Table 2: Core Competency

Spearman's Coefficient of Correlation
S. No Parameter Client Vs Consultant
Contractor Vs Contractor
1 Ability to effectively brief design team -0.2 0.15
2 Ability to quickly make authoritative decisions -0.5 0.375
Ability to effectively define the roles of

3 0.225 0.125
participating organizations
4 Ability to contribute ideas to design process 0.2 0.35
Ability to contribute ideas to the construction
5 0.625 0.8
process
The ability to contribute ideas to construction process (Parameter 5) has been consistently chosen by
project managers as indicated in Table 2, whereas client and contractor may dissociate in their
perspective on design and decision but consultant and contractor may not.
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Table 3: Project Environment

S. No Parameter
Client Vs Contractor Consultant Vs Contractor
1 Physical Environment -0.05 -0.225
2 Economic Environment 0.625 0.9
3 Socio-Political Environment 0.175 -0.075
4 Industrial Relations 0.775 -0.15
5 Overall Environment 1 0.05
It was presumed that physical environment should have scored strong positive correlation among the
respondents but it has been observed as under Table 3 that the contractor, client and consultant are
not only weakly assertive but also show dissociation (in pair-wise comparison).
However, as opposed to the presumption that economic environment may not have much influence,
it has been observed that it shows a strong correlation in the perspective of Client, consultant and
contractor.
Socio-political environment (Parameter 3) has an ambiguous importance i.e., Client and contractor
scores are weakly positive correlated whereas Consultant and contractor rankings are weakly negative
correlated.
Industrial relations and overall environment (Parameter 4 & 5) have an ambiguous relationship
between client and contractor showing strong positive correlation for both parameters but there is a
dissociation of rankings between consultant and contractor.
Table 4: Project Team Leadership

S. No Parameter Client Vs Consultant Vs
Contractor Contractor
1 Technical Skills 0.625 0.6
2 Planning Skills 0.425 -0.075
3 Organizing Skills 0.225 0.125
4 Coordinating Skills 0.85 0.125
5 Controlling Skills 0.45 -0.2
6 Motivating Skills 0.625 0.425
Commitment to meet Cost, time and
7 0.55 -0.15
quality
Early and continued involvement in the
8 0.625 0.8
project
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9 Experience and capabilities -0.15 0.3

10 Adaptability to changes in project plan 0.375 0.425
11 Support by parent company 0.55 0.8
12 Provision of resources from parent 0.35 0.125
13 Working relationship with others 0.75 0.8
From Table 4, it is evident that Technical skills, motivating skills, continued involvement, company
support and working relationship (Parameters 1, 6, 8, 11 and 13) are key parameters that show
strong and consistent agreement between client and contractor and consultant and contractor.
Planning, controlling, commitment and experience (Parameters 2,5,7 and 9) shows strong contrast
in correlation it can be said that there is ambiguous role played by them as implied from the
coefficients of client and contractor and consultant and contractor.
Organising, coordination, support and resources by parent firm (Parameters 3,4,10 and 12) appear
to be of less importance as implied from weak positive correlations.
Table 5: Managerial Actions

S. No Parameter Client Vs Consultant Vs
Contractor Contractor
1 Communication system for the project 0.55 0.925
2 Up-front planning efforts 0.1 0.85
3 Monitoring and updating plans 0.75 0.75

Developing an appropriate organization
4 -0.25 0.85
structure
5 Control of subcontractor‟s works 0.225 0.35
6 Implementing an effective safety program 0.675 1
7 Development of a good reporting system 0.225 0.225
Implementing an effective quality assurance

8 0.45 0.425
program
9 Holding of regular meetings 0.425 1
10 Development of standard procedures 0.675 1
11 Overall managerial actions 0.175 0.425
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Table 5 shows that Communication, monitoring, implementation, meetings and operating

procedures (Parameters 1,3,6,9 and 10) are also important to project success as evident from strongly
consistent and positive correlation.
Appropriate organisation structure (Parameter 4) shows an ambiguous relationship i.e., client and
contractor show a weak negative correlation whereas consultant and contractor show a strong
positive correlation.
Upfront planning, controls, reporting systems, quality assurance and overall management
(Parameters 2,5,7,8 and 11) appear to be the parameters that have lesser influence given their weak
positive correlation.
CONCLUSIONS
The objective of the study was to identify, analyse and determine the factors and parameters of
success of real estate development/ construction projects in Hyderabad so that the learnings can be
taken forward to other similar firms. Within the framework laid down to measure the factors and
parameters of success, out analysis has focussed on the parameters that are important using the
association of rankings given by three cateogries of respondents – Client, contractor and consultants.
The pair wise comparison of the correlations has given a narrow range of parameters among the
factors as measures of project success.
Among the factors, it has been observed that „Construction quality‟ is the most important objective
attached to project success (of the iron triangle – cost, time and quality), as reflected from not only
higher scores but stronger association between consultant and contractor. In core competence
measures, the scores are almost similar across parameters but between client, consultant and
contractor there was a strong positive correlation only for construction process and, therefore, it has
been rated the most important parameter in project performance.
Although the parameters of economic environment and industrial relations received higher score
under project environment, economic environment has got a strong positive correlation (in pair-wise
comparison) against the presumptuous hypothesis because the construction industry is on down
turn and investors‟ confidence has been low and thus the contractor, client and consultant give
more importance to it in the current scenario in order to improve project performance.
Similarly, when the strength and direction of correlation measures are applied to identify the
parameters of other factors like project leadership and management, the key measures of success
could be identified. In Project team leadership, they were the technical skills, motivational skills and
commitment towards project, for which there was positive correlation. In managerial actions, they
were Management Information systems, monitoring and updating plans, implementation of effective
safety plan and standardization of operating procedures, for which there is a positive correlation.
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15. ANNEXURE
Client Objectives
Client ratings (Rating by Consultant)
Objectives P1 P2 P3 P4 P5
Low Construction Cost 4 3 3 3 4
Quick Construction Time 4 2 4 4 4
High Construction Quality 5 4 3 4 4
Any Other (Pl Specify)
Client ratings (Rating by Contractor)

Objectives P1 P2 P3 P4 P5
Low Construction Cost 5 3 3 4 3
Quick Construction Time 4 3 3 4 3
High Construction Quality 5 3 4 4 4
Any Other (Pl Specify)
4
(safety)
Core competency measures

Client Competency Measures
Competency Measure P1 P2 P3 P4 P5
Ability to effectively brief the design team 4 4 4 3 4
Ability to quickly make authoritative decisions 3 3 4 4 4

4 3 3 3 5
Ability to contribute ideas to the design process 4 4 5 3 4
4 3 4 4 3
process
Consultant competency measures

3 4 4 3 3
3 4 3 4 3
process
15

Contractor Competency Measures


4 3 3 4 3
5 4 4 4 4
process
Project Environment
Client
PARTICULARS P1 P2 P3 P4 P5
Physical environment 5 4 3 5 4
Economic Environment 4 4 4 4 4
Socio-Political Environment 1 3 4 4 3
Industrial Relations
1 4 2 5 4
Environment
Overall Environment 1 3 3 4 4
Consultant
Industrial Relations
4 4 4 4 3
Environment
Contractor
Industrial Relations Environment 1 3 3 3 3
16

Project Team Leadership

Client
Characteristics P1 P2 P3 P4 P5
1. Technical Skills 4 4 4 3 3
2. Planning Skills 4 3 3 4 4
3. Organizing Skills 4 4 4 5 3
4. Coordinating Skills 4 3 4 4 5
5. Controlling Skills 4 4 5 4 3
6. Motivating Skills 4 4 5 4 4
7. Commitment to meet Cost, time and quality 4 4 4 4 4
8. Early and continued involvement in project 4 4 4 3 4
9. Experience and capabilities 4 5 3 4 4
10. Adaptability to changes in the project plan 4 4 3 3 4
11. Support by parent company 4 4 4 4 4
12. Provision of resources from parent 4 4 5 3 4
13. Working relationship with others 4 4 3 3 3
Consultant
7. Commitment to meet Cost, time and
4 4 4 5 4
quality
8. Early and continued involvement in project 4 4 4 4 4
10. Adaptability to changes in the project plan 4 3 4 4 3
17

Contractor
7. Commitment to meet Cost, time and
4 5 5 3 3
quality
8. Early and continued involvement in
5 4 4 4 4
project
10. Adaptability to changes in project plan 4 3 4 3 4
Managerial Actions
Client
Achieved Effectiveness of Managerial Actions P1 P2 P3 P4 P5
1. Communication system for the project 4 4 4 4 4
2. Up-front planning efforts 4 5 5 5 3
3. Monitoring and updating plans 4 3 4 3 3
4. Developing appropriate organization
4 3 4 4 5
structure
5. Control of subcontractor‟s works 3 3 4 4 3
6. Implementing an effective safety program 5 4 3 4 3
7. Development of a good reporting system 5 5 4 4 4
8. Implementing effective quality assurance
5 3 4 4 4
program
9. Holding of regular meetings 5 3 4 3 4
10. Development of standard procedures 5 4 3 4 3
11. Overall managerial actions 4 3 4 4 4
18

Consultant
Achieved Effectiveness of Managerial Actions P1 P2 P3 P4 P5
1. Communication system for the project 4 3 3 4 4

2. Up-front planning efforts 5 5 3 5 5
3. Monitoring and updating plans 3 3 3 3 3
4. Developing appropriate organization
3 4 5 3 3
structure
5. Control of subcontractor‟s works 3 4 3 3 3
6. Implementing an effective safety program 4 4 3 4 4
7. Development of a good reporting system 5 4 4 5 5
8. Implementing an effective quality assurance
3 4 4 3 3
program
9. Holding of regular meetings 3 3 4 3 3
10. Development of standard procedures 4 4 3 4 4
11. Overall managerial actions 3 4 4 3 3
19

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NICMAR Journal of Construction Management Volume XXVII No.

II&III, pp 38-52 [April-June & July-September 2012]

Determinants of the Success of Real Estate Projects:

A construction project is completed as a result of a combination of many events and interactions,

Attempts to predict construction duration and understand the successful implementation of

Structure of The Paper

FACTORS AFFECTING PROJECT SUCCESS

The Approach of Current Study

Electronic copy available at: https://ssrn.com/abstract=2260068

2. Quick construction time

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Project Team Leadership

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Effectiveness of the Design Team Leader

Effectiveness of the Construction Team Leader

Measures of Project Team Performance

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Project management action variables measured in this study

DATA COLLECTION, ANALYSIS AND HYPOTHESES

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(a) Client Objectives:

(b) Core Competence Measures:

(c) Project Environment:

(d) Project Team Leadership:

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(e) Managerial actions:

RESULTS AND INFERENCES

Table 1: Client Objectives

1 Low Construction Cost 0.35

2 Quick Construction Time 0.475

Table 2: Core Competency

2 Ability to quickly make authoritative decisions -0.5 0.375

Ability to effectively define the roles of

Electronic copy available at: https://ssrn.com/abstract=2260068

Table 3: Project Environment

1 Physical Environment -0.05 -0.225

2 Economic Environment 0.625 0.9

3 Socio-Political Environment 0.175 -0.075

4 Industrial Relations 0.775 -0.15

5 Overall Environment 1 0.05

Table 4: Project Team Leadership

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9 Experience and capabilities -0.15 0.3

11 Support by parent company 0.55 0.8

12 Provision of resources from parent 0.35 0.125

13 Working relationship with others 0.75 0.8

Table 5: Managerial Actions

2 Up-front planning efforts 0.1 0.85

3 Monitoring and updating plans 0.75 0.75

7 Development of a good reporting system 0.225 0.225

Implementing an effective quality assurance

11 Overall managerial actions 0.175 0.425

Electronic copy available at: https://ssrn.com/abstract=2260068

Table 5 shows that Communication, monitoring, implementation, meetings and operating

Electronic copy available at: https://ssrn.com/abstract=2260068

Electronic copy available at: https://ssrn.com/abstract=2260068

Client ratings (Rating by Contractor)

Core competency measures

Ability to effectively brief the design team 4 4 4 3 4