Issue 1

CONTENT

Editorial

1. Vjeran Mlinarić, Jadranko Izetbegović:
The department of construction management: A historical
overview

2.Mladen Vukomanović, Mladen Radujković, Maja-Marija Nahod:
Leading, lagging and perceptive performance measures in the
construction industry

3. Lana Lovrenčić Butković:
How marketing strategy is important for croatian construction
companies? – Results of the survey

4. Mariza Katavić:
Mba.Con. – Additional knowledge For civil engineers

5. Zdravko Linarić:
Categorizing the tunnel excavation in karst

6. Josip Sertić, Ivica Završki:
Knowledge requirements and market context for
international construction industry

7. Miljenko Antić, Anita Cerić, Maja Lazić:
Organizational culture of the department of construction
management and economics, Faculty of Civil Engeeniring,
University of Zagreb

8. Ivana Burcar Dunović:
A study of project governance frameworks for large
infrastructure projects with reflection on road transport
projects

9. Jadranko Izetbegović, Stjepan Bezak:
Applying a Combined Chronometric-Simulation Method for
Optimizing Operation Management in Construction

1. Vjeran Mlinarić, Jadranko Izetbegović:

The department of construction management: A historical overview

Abstract:
Historical data are presented dating from the foundation of the Department of Construction Management, Faculty of Civil Engineering, University of Zagreb up to the present day. The work of the department is presented through teaching and scientific activities, international cooperation, publishing work, the organization of teaching for undergraduate, post-graduate and PhD studies, and work by scientists at international congresses and publication of articles.

Keywords:
institution, history, teaching, science

2.Mladen Vukomanović, Mladen Radujković, Maja-Marija Nahod:

Leading, lagging and perceptive performance measures in the construction industry

Abstract:
Poor performance management is one of the main reasons for such low image that the construction industry has in the society. It is percieved as the worst, ineffective, inefficient… Even though Key Performance
Indicators (KPI) should be at the heart of every performance system, many organizations do not acknowledge their importance and thus are measuring the right things wrong and vice versa. This paper elaborates distinction among three types of KPIs: leading, lagging and perceptive, and explains their role in the performance measuring process within the construction industry. Even though many authors emphasised the importance of implementing KPIs, literature review showed that world’s practice still does not recognize the distinction. Furthermore, survey taken across Croatian construction industry, showed that: 90% of proffesionals understand KPIs’ importance, 71% used some kind of performance indicators, 63% used KPIs for internal benchmarking, 43% showed high interest in such systems, but only
28% understood above-mentioned distinction. The survey also showed that even though the managers percive all three types of KPIs important, they are still not implementing them in the practice. The paper concludes that the use of all three types of indicators is the prerequisite for benchamarking, strategy alignment and realistic goal setting.

Keywords:
performance measures, KPI, KPO, PerM, management, construction, survey

3. Lana Lovrenčić Butković:

How marketing strategy is important for croatian construction companies? – Results of the survey

Abstract:
It is a suitable and clearly defined business strategy which is tailored to the demands of the market and clients’ wishes can lead the company to better business results. Market strategy as a part of complete business strategy can accelerate the success of any company. The complexity of the construction market, as well as meeting the needs and wishes of clients are a huge challenge for all participants of this sector. Are Croatian construction companies aware of that, do they have a business strategy, do they maintain market activities, and what is their opinion about all that? The answer to this question could give the results of the survey research on the implementation of market strategies in Croatian construction companies, that was carried out in 2009.

Keywords:
marketing strategy, construction industry

4. Mariza Katavić:

Mba.Con. – Additional knowledge For civil engineers

Abstract:
The master of business administration degree (MBA) is the most popular business qualification in the world, and it has become a prerequisite for most management positions. MBA in Construction program
launched at the University of Zagreb is specially designed and adapted to the specific needs of the construction industry, as “general” MBA is not always suitable for engineers holding managerial jobs in companies and/or in construction projects... The paper presents problems that have emerged during the execution of the program as well as suggestions for its further improvement. How to sustain the continuity of quality university education while taking into account the reality of the lack of time for education is a problem that faces not only students and their future employers, but in the first place university teachers who are expected to pass on knowledge.

Keywords:
MBA, construction sector, postgraduate course

5. Zdravko Linarić:

Categorizing the tunnel excavation in karst

Abstract:
The paper analyses the relationship between forecasted and achieved categories of excavation of certain tunnels in Croatia. A relationship is given in the natural and financial sense. Based on the analyzed relationship of forecasted and achieved categories of excavated tunnel, various approaches to this categorization are analyzed from the point of view of the designer, investor and contractor, depending
on their approach to the goals of the construction as an investment project. Based on previous analyses, risk in categorization of tunnel excavations is explained as a key technological and key design risk in construction, especially for long tunnels in karst. At the end, a model for managing risk in categorization of tunnel excavations between investor and contractor is given.

Keywords:
long tunnel, tunnel excavation in karst, risk of categorization of tunnel excavation

6. Josip Sertić, Ivica Završki:

Knowledge requirements and market context for
international construction industr

Abstract:
The paper examines knowledge and competences used in different market context when construction firms operate internationally. Construction organization active on international market are required to adapt on specific market demands to achieve competitive performance. To deepen the understanding on the issue, authors have taken a qualitative insight through exploratory research which has brought two conclusions: Organizations, when analyzed through its functional structure, have different market context exposure and specialist contractors require less local specific knowledge for competitive performance as they keep lower market exposure than general contractors.

Keywords:
International construction, market, context, knowledge,
skills, Gulf, Middle East

7. Miljenko Antić, Anita Cerić, Maja Lazić:

Organizational culture of the department of construction management and economics, Faculty of Civil Engeeniring, University of Zagreb

Abstract:
Since 1981, when Peters and Waterman introduced term organizational culture in organizational science, organizational culture has become a very important field of investigation. The reason why organizational
culture became so popular is connection between appropriate cultures and efficiency and productivity of organizations. However, there is no universal organizational culture applicable to all types of organizations. Hence, this paper analyzes organizational culture of the Faculty of Civil Engineering (FoCE), University of Zagreb, focusing on the Department of construction management and economics (DoCME) and it tries to investigate whether this culture enables optimal fulfillment of FoCE’ goals. According to survey of members of the FoCE, presented in this paper, lecturers are moderately satisfied with interpersonal relationship, with selection of new employees, with the opportunity for professional promotion and with the ceremonies at the FoCE. Nevertheless, lecturers are not satisfied with the value system. In addition, a high percentage of members of FoCE think that clear rules of behavior
for students should be established. Members of the DoCME (lecturers, assistants and students) are relatively satisfied with the organizational culture in general, but they are not satisfied with the hierarchy of values at the faculty level.

Keywords:
Organizational culture, University, Faculty, Civil engineering

8. Ivana Burcar Dunović:

A study of project governance frameworks for large infrastructure projects with reflection on road Transport projects

Abstract:
In the last ten years the construction industry in Croatia has been characterised by large infrastructure construction projects. The focus of the current research is on large infrastructure project overruns and their causes, with the purpose of finding an effective way of dealing with them. During the last six years there has been a high intensity of motorway construction which is characterised by its fast-paced dynamics and adapting legal and institutional conditions. The paper presents preliminary research findings on road transport construction projects in Croatia and governance framework analysis as a basis for future research on project management governance. Project governance is analysed in more detail for the purpose of determining its relationship with other forms of governance in order to differentiate
them. There are several frameworks for project governance already in use with positive results. A case from the UK and one from Norway will be analysed with the purpose of identifying their relationships with project governance principles. Each infrastructure project construction model is based on the transport policy of an individual state. The purpose of this paper is to provide a basic starting point for developing a governance framework tailored to one specific country.

Keywords:
infrastructure projects, governance, project governance, governance framework

9. Jadranko Izetbegović, Stjepan Bezak:

Applying a Combined Chronometric-Simulation Method for Optimizing Operation Management in Construction

Abstract:
This paper describes a Croatian educational experience about the possibility of implementing a combination of the famous method of “work study” and the most modern simulation software to improve construction production. For the first time the students observed the capital technological construction processes “on site” and then measured the necessary time for their execution by the well known “chronometric” method. During the second exercise they analyzed the real observed processes and the sample of collected data. After that, they made a “graphic-simulation” model using the best-known software“Stroboscope” for simulating “just” the construction technological processes. At the end of their training exercise, the students concluded about the possibilities of improving technological construction processes on a “real site”. The main goal of this paper was to describe the“real process” of real education for some regular Croatian students. The simulation of construction processes, with real collection of data, may train the students about what to do in real situations. Of course, this paper presents only the general approach without greater detail.

Keywords:
Construction Management, Productivity Estimation,
Chronometric Measurement System, Discrete-Event
Simulation Systems, Croatian Construction Sector