Benchmarking: An International Journal

Benchmarking design-build procurement systems in construction

Edmond W.M. Lam Albert P.C. Chan Daniel W.M. Chan

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Edmond W.M. Lam Albert P.C. Chan Daniel W.M. Chan, (2004),"Benchmarking design-build procurement
systems in construction", Benchmarking: An International Journal, Vol. 11 Iss 3 pp. 287 - 302
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Benchmarking design-build
procurement systems in
construction
Edmond W.M. Lam, Albert P.C. Chan and Daniel W.M. Chan

Design-build
procurement
systems
287

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Department of Building and Real Estate, The Hong Kong Polytechnic University,
Kowloon, Peoples Republic of China
Keywords Benchmarking, Critical success factors, Design, Construction operations,
Project management
Abstract Benchmarking can be an effective way of helping organizations to deliver better services
through continuous improvement. The concept of benchmarking has been extensively applied to the
construction industry in recent years to enhance the performance of the project delivery process.
Success is hard to achieve, especially for a construction project delivered by an innovative
procurement method design and build, and the identification of critical success factors can
enable project team leaders to make improvements in some particular areas. This paper aims to
establish a conceptual framework of critical success factors (CSFs) for design-build projects in
construction. From the framework, it is hypothesized that project success of a design-build project
is a function of the interaction among project characteristics, project procedures, project
management strategies, project-related participants, project work atmosphere and project
environment. The CSFs so identified can provide practitioners and academics with a better
understanding of running a design-build project successfully to develop a benchmark for the D&B
project delivery process.

Introduction
Success is the ultimate goal in any construction project. Project participants contribute
in a variety of ways to the success level in the building process. Indeed, project success
is attributed to a number of critical factors (Beale and Freeman, 1991). With the
different perceptions of success, it is not surprising that the checklist of success factors
is varied and extensive.
Benchmarking is an effective way of helping organizations to deliver better services
through continuous improvement. It covers a variety of practices and includes
identifying ways of improving services (Audit Commission, 2000). Various research
efforts in the context of critical success factors (CSFs) were identified. As construction
projects are often initiated according to stated goals and objectives, most of the lists
were based on a particular project scope and purpose. As a result, the factors are very
specific for a particular project. The lack of a comprehensive list not only makes it
difficult for project participants but also for construction researchers to identify and
evaluate the critical components of a construction project.
Most construction projects are delivered in the conventional way where the architect
designs and the contractor constructs (Chan, 1996a). However, building clients are
becoming dissatisfied with the drawbacks brought about by the separated
The authors gratefully acknowledge The Hong Kong Polytechnic University for providing
funding to support this research effort.

Benchmarking: An International
Journal
Vol. 11 No. 3, 2004
pp. 287-302
q Emerald Group Publishing Limited
1463-5771
DOI 10.1108/14635770410538763

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procurement system and opt for more integrated options (Deakin, 1999). As a result,
innovative procurement system emerges. Design-build (D&B) is one form of
procurement systems where the D&B contractor is responsible for both design and
construction to deliver a building to the satisfaction of the client. It shows a leading
trend in the construction industry (Akintoye, 1994; Songer and Molenaar, 1997). While
some D&B projects are considered a success (Akintoye, 1994), others considered that
D&B is no better than the traditional procurement system (Retherford, 1998; Smith and
Wilkins, 1996) and there is indeed a strong need to identify what ingredients make
D&B projects a success. Review of the literature shows that most CSF studies
examined a construction project in a generic sense, with very limited attention on D&B
projects. The goal of benchmarking is to improve services and so there is a great need
to identify CSFs for D&B projects so as to increase the chance of project success.
This paper emphasizes the importance of focusing benchmarking on improvement
and considers the factors that should be included in benchmarking the D&B
procurement method in construction. It is divided into six parts. First it describes the
methodology and defines the meaning of CSFs in construction. Then a review of
different CSF models will be presented. A comprehensive framework of CSFs for D&B
projects and the related attributes will be established. Interrelationships of the CSFs
and research hypotheses will be postulated. The significance of this study will be
highlighted at the end of this paper.

Methodology
The concept of benchmarking has been applied to the construction industry over the
past few decades. While Walker and Sidwell (1996) employed the benchmarking
methodology and identified key factors affecting construction time performance in the
preparation of the benchmarking manual, Chan and Chan (2003) benchmarked
construction time performance in the Hong Kong setting. Moreover, Chan et al. (2004)
explored CSFs for partnering in construction projects. Indeed, the search of CSFs for a
given type of project can be implemented by literature review and based on expert
opinions (Chua et al., 1999). The research method for this paper was done through a
comprehensive review of literature over the last decade. This CSF checklist is similar to
that of Parfitt and Sanvido (1993) who considered the checklist as a project
management technique based on earlier research related to the identification of critical
project success factors for buildings. The selection of literature was mainly based on
the research findings of Chau (1997) including the renowned journals in the
construction field. A similar method was adopted by Chan et al. (2002) and Li et al.
(2000) in their research studies. Relevant books, seminar papers and conference
proceedings for the innovative procurement method D&B were also reviewed as it
was found that such literature incorporated practical experiences in the industry.
To maintain the efficiency and effectiveness of the literature searching process, an
on-line search was undertaken for the past 10 years in the scanning process. Search
engines identified are CatchWord, EBSCO and Science Direct and keywords include
critical success factors, determinants, elements, design-build and construction. Manual
search was also conducted to capture any missing articles and a comprehensive review
of current literature reveals that researchers have developed interests in the context of
CSFs (Table I).

p
p

p
p

Note: The previous studies are ranked in the increasing order of year of publication followed by the alphabetical order of the authors

Chua et al.
(1999)
Liu and
Walker
(1998)
Eldin
(1997)
Chan
(1996b)
Smith and
Wilkins
(1996)
Beale and
Freeman
(1991)

Previous
studies

CSFs
Factor project work
atmosphere (client
Factor
Factor project
orientation,
project-related
management
participants (client/ project-manager goal
Factor project
strategies (planning
Factor project
client representative, commitment, project
procedures
effort, training,
environment (politics,
team motivation,
designer, contractor
(work-packaging,
control systems,
community
effective
and end-user
functional grouping,
monitoring and
involvement,
coordination,
technical capabilities,
Factor project
payment modality,
feedback, risk policy,
prevailing
incentive plans and characteristics (size, role expectation and communication skills
crisis management
marketplace and
and
top management
duration and scope of
conditions of
weather conditions) and work sequence)
interrelationships)
support)
works)
contracts)

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Table I.
Summary of major
models of CSFs of
construction projects

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Defining project success and CSFs

Benchmarking can be defined as a management concept that can assist any
organization to achieve improvement (McCabe, 2001). However, the concept of project
success remains unambiguously defined and its criteria often change from project to
project (Parfitt and Sanvido, 1993). Therefore, more emphasis should be placed on the
CSFs so as to increase the chance of project success. CSFs are the statements of how
improved business practice must be achieved if an organization is to be able to attain
its mission (McCabe, 2001). They are determinants to affect the success level of a
construction project and previous researchers and practitioners identified a list of
factors which can demonstrate the characteristics of CSFs. Indeed, criteria and factors
resemble the cause-and-effect relationship. The latter contribute to the success or
failure of a project, but do not form the basis of the judgement, which is essentially the
function of the former. This idea is illustrated by Lim and Mohamed (1999) who
discussed the essential difference between criteria and factors.
Review of models of CSFs of a construction project
A comprehensive review of the relevant literature in the last decade demonstrated that
the topic of CSFs has been the focus of researchers (Table I). In 1991, a general project
management model of a construction project was developed by Beale and Freeman
(1991) who explained what factors will affect the successful execution of a project.
Later research focused on a more formal, systematic and sequential grouping of
CSFs. Project characteristics in terms of clear goals should be known and understood
by the project team to achieve project success (Liu and Walker, 1998). Project
participants and their interactive processes to form a committed team are also
considered (Eldin, 1997). Moreover, adequate guidelines and communication channels
through various contractual arrangements are important to control the process so that
the project goals of budget, schedule and quality can be achieved (Eldin, 1997; Liu and
Walker, 1998). Subject to the dynamic environment, a construction project should be
well managed by considering the external factors involved (Lim and Mohamed, 1999).
These factors are re-grouped by Chua et al. (1999) as a hierarchical model for project
success.
Review of literature shows that most studies discuss the topic of CSFs of a
construction project in a generic sense. With the insufficiency of a separate
procurement system in meeting the demands of building clients, alternative
procurement routes, like D&B, are being increasingly adopted. However, the
performance of D&B projects sometimes varies and the lack of knowledge in managing
D&B, especially in the context of CSFs, may inhibit the growth of such an innovative
system. Therefore, it is of great value to study CSFs of D&B projects so that the chance
of project success can be increased.
Factors determining the success of a D&B project
D&B has been defined as the purchase of a building from a single contractor who is
responsible for both design and construction (Akintoye and Fitzgerald, 1995). As D&B
projects require a greater level of managerial expertise from the contractor for the
integration of design and construction, the selection of contractors and sub-contractors
has been considered as one of the most important success factors (Hemlin, 1999;

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Molenaar et al., 1999). Attention is also paid to the selection system that should be
comprehensive and visible (Smith, 1999; Yates, 1995).
There is a unanimous view that the factor of project characteristics in terms of a
clearly defined scope and a clear brief is vital to the success of a D&B project
(Akintoye, 1994; Pearson and Skues, 1999). Songer and Molenaar (1997) matched the
CSFs of D&B projects with project characteristics. The factor of project participants is
also suggested by both researchers and practitioners as one of the CSFs for D&B
projects (Leung, 1999). The relationship among project participants also draws the
attention of researchers as one of the CSFs (Rowlinson, 1997; Smith and Wilkins, 1996)
since a well-organized and cohesive facility team enables better management by the
contractor (Deakin, 1999; Harris, 1999).
Characteristics of the contractor, in terms of D&B knowledge, experience and
confidence, and the ability to maintain proper documentation are also highlighted
(Rowlinson, 1997; Songer and Molenaar, 1996). End-users input is also considered
necessary to enhance the degree of success of D&B projects (Retherford, 1998).
A comprehensive review of the literature reveals that previous researchers
investigated the CSFs of D&B projects in a rather piece-meal manner. Most CSFs were
identified on a project basis and there is a lack of a systematic organization of a
conceptual framework of CSFs for D&B projects. In fact, the various CSFs identified
from both researchers and practitioners in the industry can be consolidated into six
headings, namely project characteristics, project procedures, project management
strategies, project-related participants, project work atmosphere and project
environment (Table II), which are also essential to deliver construction projects with
other procurement methods.
Findings from D&B literature reveal that the CSFs of D&B projects are similar to
those of a construction project in generic sense. Moreover, the project success of a D&B
project can be considered to be conceptually influenced by the six factor categories,
each of which contains subfactors that are the critical elements of the success factors.

Project characteristics
This factor concerns the features of a D&B project, including the project size, level of
complexity and project location. In fact, the size of a project can be defined by the
building cost, gross floor area, number or workers, duration of project and the value of
contract (Songer and Molenaar, 1997; Yates, 1995). Project complexity can be measured
by the types of physical services involved, the number of sub-contractors, resources in
terms of labour, plant and materials, the level of technology and the uniqueness of
project activities (Songer and Molenaar, 1997).
One important variable for this factor for D&B projects is the scope and definition of
objectives (Songer and Molenaar, 1997; Yates, 1995). Whether the project is appealing
to the contractor and whether the project provides scope for innovation by the
contractor and the design teams can also affect the success level of a D&B project. If
the project is innovative enough for the contractor to provide a better alternative
option, the chance of success can be higher.
Hence, the attributes of project characteristics include: the project size, level of
complexity, project location, project scope, project objectives, appeal of the project and
project scope for innovation.

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Akintoye (1994)
Kok (1995)
Yates (1995)
Smith and Wilkins
(1996)
Songer and Molenaar
(1996)
Rowlinson (1997)
Songer and Molenaar
(1997)
Retherford (1998)
Deakin (1999)
Harris (1999)
Hemlin (1999)
Lamont (1999)
Leung (1999)
Molenaar et al. (1999)
Pearson and Skues
(1999)
Smith (1999)

Authors

Table II.
Summary of CSFs of
D&B projects over the
last decade
p
p

p
p
p
p

p
p

p
p

p
p
p
p
p
p

p
p

Project
procedures

p
p

Project management
strategies

CSFs

p
p

p
p

p
p

p
p
p

p
p

Project work
atmosphere

p
p
p

Project-related
participants

292

Project
characteristics

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Project
environment

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Project procedures
Chan (1996b) analyzed project procedures under two sub-factors, namely procurement
method and tendering method. In the search of CSFs for D&B projects, the
procurement form is focused on the integrated procurement system and some
researchers consider the contractual issues important to the success of D&B projects
(Akintoye, 1994).
The use of the proper type of contract may increase the chances for success (Yates,
1995). In the private sector, negotiated guaranteed maximum contracts are used
whereas in the public sector, a lump-sum contract with a competitive award is required
so that the commitment to a fixed price can be established earlier (Molenaar et al., 1999).
To procure a hospital project by D&B, project procedure manuals were prepared to
define the procedures to be adopted and define the means of ensuring adequate control
so that the standard procedures, practices and systems can be observed throughout the
life of the project (Pearson and Skues, 1999). Modifications were also made in D&B
projects to strengthen the contract in design responsibilities (Chan, 2000).
In fact, the focus of a contract should not be just on the choice of procurement, but
the identification of risk and its equitable allocation since the clients have become
increasingly concerned about the extent of risk they are exposed to (Akintoye, 1994;
Chua et al., 1999). There should be a more extensive assessment of the design quality
that is backed up by a suitable form of contracts to promote quality in the design
(Harris, 1999). In civil engineering and refurbishment projects, the contractor is even
exposed to huge pricing risk and work uncertainty and a method statement should be
drafted to provide information for the responsibilities at various stages of design and
construction (Akintoye, 1994).
The selection of contractors is being considered as a significant aspect in achieving
project success of D&B projects (Chan, 1996a; Deakin, 1999). In D&B projects,
prequalification is necessary to make an initial assessment of the interested parties
suitability to undertake the works. In prequalification of hospital projects, assessment
criteria such as hospital construction experience and D&B experience were included
(Chan, 2000). Other related issues, like the procedures and the system for tender
evaluation also attract much attention (Lamont, 1999; Smith, 1999). The scoring system
should also be formalized and repeatable to avoid injustice (Molenaar et al., 1999). In the
UK, a clear selection methodology with weightings assigned to the criteria is essential to
procure projects by the D&B approach (Smith and Wilkins, 1996). Therefore, the
appointment of a competent contractor can increase the chance of success.
Hence, the attributes of project procedures include: contractual arrangement and the
tendering system.
Project management strategies
Project management has been considered as one major determinant of project success
(Smith and Wilkins, 1996). To draw the attention of project participants on both the
project-related and company-related issues, proper communication and feedback channels
should be set up in order to coordinate the large number of people. In Japan, progress and
coordination meetings were regularly organized to maintain the close cooperation of the
D&B contractor with the client and design team. Variation control has also been applied
to filter out unnecessary changes which could prolong the project completion date
(Hidenori, 1995). In government D&B projects, the contractor is required to illustrate

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procedures that allow conflicts in design information to be solved in a systematic manner

(Lamont, 1999). Detailed programming should also be planned to provide a rigid
framework of programme dates to ensure the full integration of the design process into
the overall progress (Hemlin, 1999). Indeed, the overall project programme should be
properly structured and sequenced to accommodate the design process which relies
heavily on the management skills of the D&B contractor (Smith, 1999).
The project management structure should be established to clearly define the
appropriate organizational structures, roles and levels of authority (Smith and Wilkins,
1996). As a result, the performance and progress can be recorded and passed up quickly
among the professionals to ensure timely decision-making and develop appropriate
culture for the project team (Pearson and Skues, 1999). An effective implementation of
project management actions also requires adequate systems for quality, risk, safety and
more human-related conflict management at the planning stage so that project
participants can have standard procedures to follow (Al-Meshekeh and Langford, 1999).
In Australia, the quality assurance system was one requirement of a D&B contract to
help solve the problems of consultants unable to supervise the work for the client (Chan
and Lam, 1995). In civil engineering projects in Hong Kong, the D&B contracts required
the contractor to work within an approved quality system and regular monitoring and
audits of contractors works are essential (Leung, 1999). In some D&B hospital projects,
master and detailed programmes were planned to include allowances for coordination
and decision-making (Pearson and Skues, 1999). Controls were also placed on the
end-users to reduce changes to project requirements (Chan, 2000).
Innovative management approaches like partnering should be employed to avoid
escalation of potential problems (Chan et al., 2004; Deakin, 1999). In Japan, value
engineering was applied in some D&B projects to enhance value in relation to design
and construction (Hidenori, 1995). It has also been applied in a factory project in
Singapore to eliminate costs without additional value (Cheng, 1995). As
sub-contractors in D&B projects are normally required to provide design services, it
is suggested that a team-based management structure rather than a traditional
hierarchy should be adopted to get the sub-contractors aware of their importance to the
overall success of the D&B project (Beard et al., 2001).
Hence, the attributes of project management strategies include: communication and
feedback systems, quality, safety, risk and conflict management systems,
organizational structures and culture, control mechanisms of sub-contractors works
and the overall managerial actions in planning, organizing, leading and controlling.
Project-related participants
The completion of a project requires input from a variety of human-related groups
(Munns and Bjeirmi, 1996). Project-related participants refer to the major parties to a
D&B project, namely the client, the project team leader, contractor and design
consultant, and the end-users who all contribute significantly to the success of a D&B
project.
The client. A client can be defined as the person or firm responsible for
commissioning and paying for the design and construction of a facility (Kamara et al.,
2000). It can be classified either as primary and secondary, or experienced and
inexperienced (Love et al., 1998) and plays a vital role in the successful outcome of the
project. In D&B projects, the contractor develops the design according to the clients

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brief. The client should be able to brief his requirements in writing and be prepared to
take an active role in the construction process to avoid a gap between the requirements
of the client and other project team members (Kometa et al., 1995). Therefore, the level
of experience of the client is critical to the success of D&B projects. The traditional
goals of a construction project in terms of time, cost and quality should also be stressed
by the client to show its concerns and induce pressure to the project team members
(Chan, 1996b). The overall contribution of the client to the project is indeed necessary.
The clients project manager, the contractor and the design consultants. The clients
project team, the contractor and the design consultants are the key project participants
in a D&B project and their respective team leaders form the main focus of this factor.
They should possess all the necessary skills of a project manager, namely leading,
planning, organizing and coordinating skills and perform to the greatest extent of their
capability (Smith and Wilkins, 1996; Yates, 1995). They should have a clear
understanding of the clients brief and be mindful to the business and cultural aspects
of the company (Deakin, 1999). As D&B projects require design inputs from the
contractor, its team leader should be able to first the develop clients requirements by
clearly formulating the intensions of the client (Leung, 1999). Indeed, all project team
leaders should be devoted to the integration of specialized knowledge for a common
purpose towards project success (Hemlin, 1999) and should have sufficient knowledge
on D&B documentation and dissemination (Songer and Molenaar, 1996).
Apart from working within the constraints of the project itself, project team leaders
should also possess certain human skills in coping with stresses, establishing good
relationships among team members and inducing a harmonious working atmosphere
(Smith and Wilkins, 1996). As the contractor becomes the single-point entity of a D&B
project, he should possess the leadership skills to coordinate the various building
professionals for both the design and construction works. Such team-building skills are
increasingly required by the project team leaders to increase the project teams
effectiveness (Hemlin, 1999).
The traditional skills of an effective project team leader rests in the project or
project-related aspects technical and social skills (Hauschildt et al., 2000). One
increasingly critical prerequisite, the adaptability to change, is also necessary to cope
with constant and rapid change of technology, markets, regulations and
socio-economic factors (Hemlin, 1999; Yates, 1995). D&B is known for time-saving
with the fast-track principle. Without the coordination and support from the project
team members, the success of the D&B project can hardly be assured.
One common element for the successful performance of the client and the project
team leaders of the contractor and design consultants is the support from the parent
company which is a vital requirement to project success (Munns and Bjeirmi, 1996).
Their commitment towards the project in providing resources and any administrative
support is important. Such determination can be attributed to the size of the parent
company. The authority delegated to the client and the project team leaders can also
significantly affect the success of a construction project (Pitagorsky, 1998).
The end-users. End-users in many cases are not the same as the client and the
understanding of the needs of the end-users is also important to the success of a D&B
project (Deakin, 1999; Retherford, 1998). Therefore, the project team leaders should
have end-users input and coordinate them in the successful implementation of a D&B
project (Pearson and Skues, 1999).

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Hence, the attributes of project-related participants include: clients experience,

clients ability, clients emphasis on time, cost and quality, clients contribution to the
project, project team leaders experience, project team leaders knowledge and skills,
project team leaders commitment to time, cost and quality, project team leaders
responsiveness to changes and external environment, project team leaders effectiveness
to coordinate end-users, support from the parent company and end-users ability to
input.
Project work atmosphere
A pleasant and encouraging working atmosphere is conducive to the success of a D&B
project. How project participants look at a particular project can significantly affect
their performance. For instance, the contractor should be confident of the design and
construction of a D&B project (Kok, 1995). Other team members should establish
satisfaction, expectations and values from the project. An adequate delegation of the
project team decision-making authority can indeed raise their morale standards
(Retherford, 1998).
When the project team members are psychologically fit to implement the D&B
project, the chance of forming a cohesive and well-integrated team can be increased,
which is essential to D&B project success (Rowlinson, 1997). Such a project team is
effective in eliminating communication problems, encouraging respect and mutual
trust (Deakin, 1999; Kok, 1995). The formation of team spirit strengthens the
willingness of all parties to work as a team (Smith and Wilkins, 1996) and enhances
cooperation to link interdependent functions together towards project success. In D&B
projects in Japan, trust among the project team enables the contractor to use their own
construction expertise at the utmost efficiency (Hidenori, 1995).
Hence, the attributes of project work atmosphere include: project team members
attitudes to the job, project team members interaction with each other and project team
members working relationships with each other.
Project environment
Most D&B projects are undertaken in open space. Physical factors, like weather
condition, have an impact on project success (Beale and Freeman, 1991). If the weather
is continuously fine, the chance to complete the project by the contractual completion
date can be more secured.
The influence from the government and politics can affect the success level of a
D&B project. Depending on controversiality and public sector or government
involvement, the project may be subject to public hearings, environmental impact
studies and supreme court appeals (Okpala, 1991). Moreover, the levels of
bureaucracies and the support and commitment from the government in terms of
funding and availability of land can be significant in determining the success of a D&B
project (Leung, 1999). Relationships with the industry also show effects on the D&B
project success (Beale and Freeman, 1991).
One other influencing environment comes from social entities (Liu and Walker,
1998) whose opinions should be considered in the design of a construction project.
Economic factors of market imperfections, disequilibrium prices, inflation and
prevailing marketplace also attract much attention (Okpala, 1991). If the economic and

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political conditions are favourable, the client may opt for an early procurement of the
building and D&B can satisfy the client in this aspect (Akintoye, 1994).
Hence, the attributes of project environment include physical environment, political
environment, industrial relations environment, social environment and economic
environment.
Conceptual framework of CSFs for D&B projects
The comprehensive literature from both researchers and practitioners reveals that the
success of a D&B project is determined by a number of factors. To begin with, project
characteristics should be clearly defined and understood by all project-related
participants. These participants should be selected through a fair, precise and clear
evaluation criteria system. The project should be implemented under certain project
procedures and be monitored and controlled through various sorts of project
management strategies. The projects key players should show knowledge and skills to
manage the D&B project effectively and should themselves coordinate and work
towards a common goal. Attention should also be paid to project environment factors
where the project key players should be adapted to changes.
In fact, the factors affecting the success of a D&B project are all interrelated. The
size of a D&B (project characteristics) project can be affected by the economic
conditions (project environment). A favorable marketplace will induce higher
willingness to invest on a construction project. In the public sector, the size of the
project can be assessed by the contract sum that is in turn determined by the amount of
funding received from the government. Moreover, if the D&B project is complex, the
organization of the project team may be rearranged to suit the need (project-related
participants). Tailor-made forms of contracts may also be used (project procedures) to
handle the more complex requirements.
Project management strategies are closely related to the experience of the
project-related participants (project-related participants) and the constraints imposed
on by the external agents (project environment). They are also determined by the
nature of the project (project characteristics) and project procedures (project
procedures) so as to be eligible under the tendering system. On the other hand, the
selection of contractor (project-related participants) is heavily influenced by the
tendering system (project procedures) that will be adjusted according to the external
environment (project environment). If the physical conditions are favourable (project
environment), the commitment of the project participants to the project goals can be
ensured (project-related participants) and the work atmosphere of the project team
members (project work atmosphere) can be affected by the influences brought about by
other CSFs. Such interrelationships can be visualized in Figure 1.
As a result, it can be hypothesized that Project success of a D&B project is a
function of the interaction among project characteristics, project procedures, project
management strategies, project-related participants, project work atmosphere and
project environment. If a D&B project with clearly defined goals is implemented
through a fair tender evaluation system by competent project team members with
systematic management guidelines and high team spirits under a stable environment,
then the D&B project has a better chance for success. Whereas if a D&B project with
ill-defined goals is implemented through an opaque tender evaluation system by
incapable project team members with confused management actions and diffused

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Figure 1.
A conceptual framework
of CSFs for D&B projects

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project objectives under an unstable environment, then the D&B project is more likely
to be a failure.
Significance of the study to the construction industry
The study of project success has attracted considerable attention in the construction
industry. As project participants always aim for the success of a construction project, it
is important to search for the CSFs concerned so that the chance of success can be
enhanced.
D&B has been introduced in the construction industry for decades. It is particularly
adopted by the public sector in Hong Kong and the application of benchmarking is
relatively recent in the public sector (Audit Commission, 2000; Chan et al., 2001). The
advantages of this innovative procurement system were widely recognized by both
researchers and practitioners. Nevertheless, most project team players are more
familiar with managing the traditional procurement system. The separated
procurement system exhibits potential problems associated with the interface
between design and construction and building clients opt for more integrated options.
D&B can overcome the drawbacks of the traditional method (Chan, 2000). Project
participants are required to manage D&B projects successfully by understanding the
CSFs involved. However, review of literature shows that most CSF studies examined a
construction project in a generic sense, with very limited attention on D&B projects.
This research enables the key project stakeholders to better manage D&B projects
by providing a conceptual framework of CSFs of D&B projects in a global sense. It
summarizes the factors affecting the success of D&B projects and the attributes
determining the results of each factor from both literature and real-life examples. It also
highlights the inter-relationships between the factors so that project managers,
especially the contractor can identify the factors that have strong effects on the project
performance to achieve the success criteria, normally in terms of time, cost and quality.
The hypotheses can also postulate what factors induce success or failure of D&B
projects. Corrective measures can then be taken before major problems occur. Such a
framework can be used to examine or review past projects or to maximize the chance of
success for future projects. It can also be used to critically review and compare CSFs
with other D&B projects with the aim to achieving continuous improvement in all
management aspects for better project performance.
This research also has educational values in providing a more systematic
framework to facilitate efficient analysis on D&B projects. While the research presents
the results of a comprehensive literature review, further research focus can be
established on collecting data to verify the findings. This helps set a benchmark for
D&B research and provides a further research platform for examining different types
of D&B projects, like the building type and civil engineering type. It is believed that
such a research can enhance the use of D&B procurement system in the construction
industry worldwide.
Conclusions
Most construction projects in Hong Kong are procured by the traditional method.
However, the increased complexity of buildings, the need to reduce design and
construction periods, and the need to improve the project performance have bought
tremendous pressure to seek other ways to deliver the project. The fragmentation of

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the UK construction industry also inhibits performance improvement and most clients
believe that significant value improvement can be gained by the integration of design
and construction (Egan, 1998). The Construction Industry Review Committee in Hong
Kong recognized the traditional problem of fragmentation in construction and
recommended a more integrated and productive construction industry for excellence
(CIRC, 2001). D&B is one of the alternative procurement methods for more
collaborative work among project participants.
Benchmarking is a powerful tool for project stakeholders to achieve improvements
in D&B project delivery. To better predict the probability of success, it is essential to
have a comprehensive review of the CSFs in a global sense. Six factor categories were
identified from the literature and it is believed that a combination of these factors
results in project success or failure. A hypothesis was also postulated to signify that
project success of D&B projects is a function of the interaction of the six factor
categories identified. In fact, CSFs are vital for project team leaders engaging in
improvements of their management approaches. If the CSFs of D&B projects are
identified and properly addressed, benchmarking tools and techniques can be
developed for improving project performance. Further research can be conducted on
real-life case studies to examine the CSFs of D&B projects via detailed questionnaire
surveys. A conceptual model of project success for D&B projects can also be
established to investigate the causal relationship between the success criteria and the
CSFs from qualitative analysis. With the increasing demand on more innovative
procurement methods, research on the D&B procurement system can help to capture
knowledge and experience of project participants in construction.

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