A comparing actual performance with the planned in

A questionnaire survey is one of the most effective ways
to involve a large number of peoples in the process in order to achieve better
results. The previous chapters present the need to measure and evaluate the
performance of PPP projects in different level either the project level or the
organization level, in different phases start from the development phase till
the construction of the project, for different participants and from different
stakeholders’ point of view. The key performance indicators one of the modern
techniques proposed the measure the performance and consequently define the
areas of strength and weakness and the need of corrective action to improve.

 

Considering the large amount of projects that have come
to be implemented with this model of public procurement, it is important to
define the key factors that characterize them and that have more influence on
projects success. These indicators, which depend on the objectives of each
project, are the basis of evaluation, since they allow comparing actual
performance with the planned in terms of effectiveness, efficiency and quality.
The indicators are useful tools for performance management.

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During the construction phase of the PPP projects,
performance measurement and evaluation of the construction contractor are
required. This measurement and evaluation is valid totally for the normal
construction project as no difference from construction company’s point of view
for the project based on its overall financial arrangement.    

 

 There is a
general belief that performance evaluation models developed for large
Organizations can be applied to small and medium enterprises (SMEs) either
without Modifications or with minute changes. This belief is based on the
assumption that large organizations being highly complex, models developed for
them will be robust enough to address the complexities of small organization
too. The study of this issue will be one of the target of the second
questionnaire.

 

It is important for a specific contractor to be able to
compare the overall performance of different projects types that he or she is
working on, especially since these projects often differ in many ways including
size, complexity, and scope. This will help the contractor ensure continuous
improvement and to decide if any new practices he or she is trying to adopt are
worth the time and resources invested.

 

During this part of the research, two questionnaires
will design to serve the purpose of evaluation the performance and success of
the PPP projects from the developer company point of view or what named in this
type of the project “the concessionaire” and then later evaluate and measure
the performance of the contractor for the project during construction
phase. 

 

For construction phase, many questionnaires were
prepared and the results were analyzed to determine the performance evaluation
formula for the any project. This search is different in classify the
performance evaluation model for the construction project as a matrix measure
in three dimension the size of organization (Small, Medium and large), type of
the project (Commercial, Industrial and heavy Civil) and the last one is the
location as the results mainly related to Egypt construction’s performance.

 

4.2     Factors Affecting Questionnaire Respondents Opinions 

 

The questionnaire/survey results depend
essentially on the respondent’s opinions. However,
there are many factors that can
affect
the opinion given by the expert, such as:

 

Subjective Estimation of KPI’s and its priorities

Anchoring: This happens when the respondent starts with a preliminary evaluation which
is usually modified while filling the
questionnaire.Linguistic Imprecision: If the same word
or expression
can be interpreted
differently by the respondents which will lead to a lack of unification in
the point of view from which
the question is answered. In test the questionnaires sample with
the experts, one of the main targets to eliminate or reduce this element. It
was notice this issue from using the expression KPI’s with different definition
such as to present the project productivity. 

Psychological
factors affecting opinions

Conformity:
This difference arises between a respondent answers the
survey independently and another who answers it collectively (among a group of
other respondents). It can be named also, group affect. To minimize this
effect, the questionnaire sent to small number of respondents in every company
and id in different departments or projects.Bias:
If the survey is solved collectively, then, respondents may
be affected by their seniors or managers in taking the decision. The respondent
think that he misses the required experience to answer.Personality:
The personality of the survey’s solver may affect his/her
answers to the survey.  Accordingly, and because of these
limitations, it is preferred for each respondent to answer the survey
individually to get the full point of view and vision without being affected by
another person in his/her surroundings and finally use his experience as the
questionnaire also measure the level of experience with the respondent ago. 

Test the questionnaires

 

It is recommended to conduct a pilot study of a
questionnaire prior to its full deployment (Naoum, 2007). A pilot questionnaire
is considered the most beneficial tool to ensure that a questionnaire is clear
and understood by all respondents, as well as to identify ambiguities in the
meaning of questions, how long recipients take to complete it, and to eliminate
any questions that do not yield usable data (Rattray & Jones, 2007).
Therefore, during development of the questionnaire, it was essential that the
questionnaire be tested by sample of respondents. The participation of
respondents provided an opportunity to evaluate the reliability and validity of
the questionnaire format.

 

 The pilot study
was carried out amongst PPP and construction professionals. Questionnaire
number 1 was sent to five experts in PPP projects. Questionnaire number 2 was
sent to six experts in construction management. Individual meetings were hold
with all of them to measure the clarity and all other targets from the pilot
studies. The final copy of the questionnaire issued after consider all the
finding of pilot study.

 

The questionnaire respondents should have valuable
knowledge in construction performance management, PPP projects and methods of
procurement of the projects. This level of experience is not famous and the
sample should be limited and conditioned to have these requirements. A list by
about 100 persons from more than 18 organizations satisfy such requirements was
the sample size for the first questionnaire. The second questionnaire, was more
popular so, sample size based on statistical methods was calculated.

 

 

Design of the First Questionnaire

 

A questionnaire was design to serve the purpose of evaluation the
performance or success for the PPP projects from the developer company or what
named in this type of the project “the concessionaire”. The survey done through
questionnaire titled “Questionnaire to develop a series of Key Performance
Indicators (KPIs) to Measure Performance of Egyptian Public Private Partnership
projects (PPP)”. The survey includes the questions that are necessary to
catch the expert opinion about the importance of construction performance
indicators in PPP projects and to rank these indicators. The questionnaire
Introduction gives a brief summary of the purpose of the survey. The structure
of the questionnaire consists of three parts; the first part contains personal
information. The second part contains the information about organization and
the project in which you will consider in your deal with part three of the
questionnaire. The third part contains 56 KPIs which are required to be
evaluated to identify their importance. The KPIs’ diagram of PPP projects was
attached to the questionnaire to facilitate understand the KPIs structure. Copy
of the questionnaire is attached (Appendix A).

 

 

Design of the Second Questionnaire

 

The second survey questionnaire titled “Questionnaire to
develop a series of Key Performance Indicators (KPIs) to measure performance of
construction projects in Egypt”. The questionnaire includes the questions
that are required to elicit thoughts of the respondent on the importance of
KPIs and to rank them after considering the size of the organization and type
of the projects. The previous work as shown in literature review were measure
the performance of the projects regardless the company size and also, project
types. Minor number of researches indicate that the measurement of performance
in one type of construction projects mainly building. In this research the
measurement of performance for the project during construction phase was in
three dimensional matrix includes the following dimensions:

–    Geography
by considering the Egypt as the domain for research.

–   Project type by
considering three types of projects (Institutional and Commercial Building
Construction, Industrial Construction, and Infrastructure and Heavy
Construction).

–   Organization and
project size by considering three dimensions for the organization (Large,
Medium and Small).

 

The definition and criteria to determine the size of
organizations and type of projects will have presented in the following
sections.  The questionnaire start with
Introduction is used to give a summary of the purpose of the survey and provide
definition for the terminology used inside the questionnaire. The main
structure of the questionnaire contains three sections; the first section asks about
respondent personal information. The second section collects information about
organization, the project in which
you will consider in your deal with part three of the questionnaire and the
implementation of key performance indicators in the organization.
Finally, third section contains 35 KPIs which are required to be evaluated to
identify their importance Index based on the respondent previous experience. Copy
of the questionnaire attached in Appendix B.

 

 

Major Types of construction projects

As mentioned
above, three types of project were considered. These three types of projects
according to the below classification includes most of the major construction
project. The projects’ classification contains the following types:

 

4.3.1    Institutional and
Commercial Building Construction

Institutional and
commercial building construction covers a large numbers of projects, variety of
types and sizes, such as hospitals, medical clinics, universities, schools, entertainment
facilities, sports stadiums, hotels, large shopping centers and retail chain
stores. The general contractors construct this type of projects may be
specialized in only that type of construction. Due to its higher financial
costs and greater sophistication of the institutional and commercial buildings
in comparison with residential housing, the market segment for this type usually
shared by a relatively few numbers of competitors

 

4.3.2    Specialized Industrial
Construction

Specialized
industrial construction such as oil chemical processing plants, refineries,
steel mills and large factories. High level of technological complexity and the
large scale are the main properties of this type of projects. Another major
difference with other types of projects which is the deep participation of The
owners in development of a project, and work with designers-builders to
shortened the total time for the completion of the project to start the
production as soon as possible due to huge investments and financial cost.

 

The initiation of such projects is also affected by the
state of the economy, long period demand forecasting is the most important
factor since such projects are capitals intensive and require considerable
amount of planning and construction time.

 

4.3.3    Infrastructure and Heavy
Construction

Infrastructure and heavy construction includes many sub-categories
projects such as mass transit systems, tunnels, highways, bridges, pipelines,
drainage systems and sewage treatment plants. The major characteristic of this category
of construction projects is the high degree of mechanization, which has
gradually replaced some labor intensive operations.

 

Each segment of the market requires different types of
skills and high specialized engineers and contractors in infrastructure
construction. These types of projects currently, are urgent request in Egypt
and all development countries.

 

4.4     Company Size

 

Small
and medium size enterprises (SMEs) are challenged to match with rapid market changes.
This rapid change of market put extra pressure on the manufacturing and
construction firms to concentrate on their core competencies as well as search
for competitive advantages and innovations. To sustain such a competitive
environment, firms have to measure their performance and how to improve it. Key
performance Indicators are one of the best measurement tools which covers many
areas in business not only for the SMEs companies but also, for the large
organizations.

 

There
has been no commonly accepted definition of SMEs (Curran and Blackburn 2001,
Walters 2001). Definitions vary from one country or industrial sector to
another. Researchers and governments employ various definitions to suit their
purposes. Definitions are generally based on quantitative and or qualitative
criteria. Qualitative definitions adopt ownership, responsibility, flexibility,
level of autonomy and market share whilst quantitative definitions adopt
employee numbers, turnover, value of fixed assets, and balance sheet total. 

 

The company size can be classified
based on different criteria as follows:

 

Classification of
companies according to annual gross income.

The most important
parameter to define a company’s size is its annual gross income. In case the
company has branches, it must be considered the global income, that is, the
matrix’s income plus the affiliates’ income.

 

 

According to BNDES
(National Bank for Economic and Social Development – Brazil), the values for
the classification of companies regarding their size are as follows:

Micro enterprise:
Less than or equal to 0.6 M $.
Small company: More
than 0.6 million and less or equal to 4.1 M $.
Medium-sized company:
More than 4.1 million and less or equal to 23.2 M $.
Medium-large company:
More than 23.2 million and less or equal to 77.3 M $.
Large company: More
than 77.3 M $.

 

The BNDES criteria are one of
the most important among others, because it is considered when the company is
applying to obtain a credit line with a financial institution. Fraction appear
in classification boundary as it based on the local currency.

 

Classification of companies according to the
number of employees

 

Small and medium-sized
enterprises SMEs; sometimes also small and medium enterprises) or small and
medium-sized businesses (SMBs) are businesses whose personnel numbers fall
below certain limits. The abbreviation “SME” is used in the European
Union and by international organizations such as the World Bank, the United
Nations and the World Trade Organization (WTO). The Brazilian
Institute of Geography and Statistics (IBGE) classify companies
according their number of employees:

Micro enterprise: –
In industry, up to 19 employees. In trading and services, up to 9
employees.
Small company: – In
industry and construction, 20 to 99 employees. In trading and services,
from 10 to 49 employees.
Medium companies: –
In industry and construction, from 100 to 499 employees. In trading
and services, from 50 to 99 employees.
Large companies: –
In industry and construction, from 500 employees. In trading and services,
from 100 employees.

 

According
to European Union recommendation 2003/361 “SME” stands for small and
medium-sized enterprises, the main factors determining whether a company is an
SME are:

Number of employees

Micro-enterprises have up to 10 employees
Small enterprises have up to 50 employees
Medium-sized enterprises have up to 250
employees. 

Either turnover or balance sheet total.

Company
category

Employees

Turnover

or

Balance sheet
total

Medium-sized