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Innovation Processes And Practices In Construction Industry In Anambra State Of Nigeria
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1. Technical skills
2. Personal skills (resources)
3. Management team
4. Supply chain management
5. Methodology
6. Environmental criteria
7. Relevant experience
8. Past performance.
Some of the quality criteria can be clearly identified as relevant and important, but the difficulty arises when evaluating them because some of them are personal skills and not totally objective criteria. People create innovation, and choosing the best qualified people also increases the potential for innovation in the project.
Pakkala (2008), stated that in order to improve innovation and have the best qualified organization, appropriate percentages for the quality aspects should be considered.
It is quite safe and practical to say that a minimum of at least 30% quality-based selection criteria should be considered. Methodology is somehow a more distinct determining factor, and it can determine what innovation or lack of innovation is being planned for the projectFigure 2 above shows the range of possibilities for contractor selection criteria. Some of the most common delivery methods are shown at the bottom to represent some typical practices. It is easy to realize that the easiest and simplest method or choice would be the low bid process (100% price criteria) because it is quantitatively measured. It is objective, unbiased and contestable. This might however be why it is mostly adopted, but the bottom line is that it is less innovative and hinders innovation in the contraction sector.
2.5.1.3 INNOVATIVE MAINTENANCE CONTRACT Maintenance activities and duties in the construction sector, especially road sector, were typically self-performed by the administrators
/government with most of the control and decision-making done internally. Over the years innovative ideas have sprang up, changes introduced and maintenance is mostly now procured from the private sector for diverse elements of maintenance requirements.
Dale (2007), holds that more and more procurement from the private sector has created a private sector relationship for maintenance activities that could be done more efficiently and effectively. He further stated that some of the earlier procurement maintenance activities were typically achieved via separate agreements for each type of diverse activity. These maintenance activities usually were procured based on labour rates, materials and supplies, unit rates (schedule of rates) and sometimes a lump sum (fixed price).
He also stated that several of progressive countries actually change to a new paradigm in which all maintenance activities are procured from the private sector.
Pakkala (2002), maintained that there are innovative methods of procuring maintenance activities for all products and services under one contract and for a long term.
More and more clients are outsourcing maintenance to private industry and several innovative practices are being used in several countries. Some aspects of maintenance were outsourced earlier, especially distinctive type items, but now changes have occurred and maintenance is moving in the direction of fully integrated client services, in which most services and products are procured under one contract. This is very interesting idea for progressive innovation because it is creating different market opportunities and a possibility of new companies/ existing companies to be formed, merged, partner and may be displaced. He further said that there are newly created maintenance contracts, including a special one called Performance Specified Maintenance Contract (PSMC) which has integrated almost all the maintenance activities and procured them for a specified length of time. He listed some maintenance contract methods and practices that provide the most potentials for innovation to include:
1. Long-term agreement greater than 7 years.
2. Partnering (both client and sub-contractors)
3. Lump sum contracts
4. Using quality-based contractor selection criteria.
5. Utilizing out-come based criteria.
6. Ability to use innovation throughout the length of the contract.
7. Incentives and disincentives.
8. Pilot project using PSMC type model.
Maintenance development are probably more easily introduced because these activities need to be performed on a routine basis and there is a continuous search for better practices and refinements.
2.5.2 INNOVATIVE MANAGEMENT METHODS
Maron (2005), opined that a distinctive innovation culture in construction firm is rare. He acknowledged that for innovations to succeed, it has to become a shared value within the firm. Blayse et al (2004) stated that even with external conditions favourable to innovation, it is important for firms and individuals involved in construction to have in place attitudes and processes conducive to innovation.
Innovative management methods fall under the broad heading of organizational resources and management and include the following:
The culture of innovation within the firm.
The skills to successfully adopt innovations developed elsewhere.
The presence of key individuals who champion innovation.
Processes that facilitate the codification/ retention of required knowledge and innovation strategy.
Barlow (2002), has it that intangible organizational attributes that are likely to be conducive to innovation include:
a. Not penalizing new ways of working if they do not succeed.
b. A culture of collaboration in which people are able to question ways of working without fear of penalty.
c. A shared perception that participants are all striving to achieve a greater understanding of each others goals.
Maron (2008), also maintained that new ideas should be prevented from getting lost due to domination of daily business or unclear competencies. She added that innovative behaviour should be rewarded and opportunities for information and knowledge sharing between projects and business units should be created. A firm’s management should communicate the importance of innovative solution thoroughly; offer employees freedom to become innovative and support innovative employees actively regardless of position in the hierarchy. A few simple changes such as setting up a suggestion box or encouraging inputs at staff meetings can make a significant difference to the innovative culture of the firm. Love et al (2002) maintained that there are needs to explicitly recognize that learning requires openness to new ideas and on-going dialogue.
Blayse et al (2004), stated that some in-house technical competence is required for firms to benefit from research and absorb results of research conducted elsewhere. For construction organizations to take full advantage of knowledge transfer necessary for innovation, they need to have sufficient absorptive capacity.
It does not need to be over-emphasized that innovative management processes and strategies need to be implemented and practiced in the construction industry and among construction firms. The truth is that when the right mentality and psychological approach towards organization structure are felt, then the effect of innovation will begin to manifest; ideas must be welcomed in fullness, innovative incentives will be introduced, and there will be an appreciable degree of tolerance among individuals in a firm. With these, innovations can be appreciated in any construction firm as new ideas, technologies, processes and methods begin to flow freely. Even research and development could even take place unstrategized among individuals.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis study “innovation process and practices in construction industry in Anambra State of Nigeria†examined and assessed the level of innovation in the construction industry. An analysis of the relevant literatures was carried out. The analysis revealed that there are innovation drivers that facilitate or inhibit innovation in the construction industry. These include clients, manufacturers, professional bodies, academic institutions, government, consultants and contractors. T ... Continue reading---
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis study “innovation process and practices in construction industry in Anambra State of Nigeria†examined and assessed the level of innovation in the construction industry. An analysis of the relevant literatures was carried out. The analysis revealed that there are innovation drivers that facilitate or inhibit innovation in the construction industry. These include clients, manufacturers, professional bodies, academic institutions, government, consultants and contractors. T ... Continue reading---