QS005 - AN ASSESSMENT OF PROJECT SUCCESS CRITERIA (TIME, COST AND QUALITY) AT MEETING THE CLIENT SATISFACTION (A CASE STUDY OF IBADAN NORTH)

CHAPTER ONE

1.0       Background of the Study

Project success criteria are a set of principles or standards by which project success can be judged. These are the conditions on which judgement can be made. Despite the years of individual and corporate experience of managing projects and despite the fact that many projects meet the three constraints (cost, time, and quality), project results continue to disappoint stakeholders.The basic criteria of cost, time and quality (C.T.Q.), also known as the “Iron Triangle” or the “Golden Triangle”, have been traditionally used as project success criteria. However, these three criteria have been criticized as being inadequate (Cook-Davies, 2002) for a series of reasons. Let us take the example of project completion times. Because of the delays, project managers usually pay some penalties that increase the total cost of the project if there is any breech in the cost. Yet these projects are still considered as successful. Another example is linked with customer acceptance. We may deliver a project which was implemented on time, within cost and to some quality parameters requested, but which is not used by the personals, not liked by the clients and does not seem to provide improved effectiveness for the organization. It is obvious that this is not a successful project. Today we know that determining whether a project is a success or a failure is far more complex than this.

The quest for project success criteria has resulted in some publications. In addition, the findings of the literature review revealed that most models explaining project success are based on theory rather than empirical proof. This study will examine if there are other relevant success criteria, as well as methodologies and techniques to measure these criteria. The author hopes to discover another perspective for project success by using academic research, interviews with project managers, review of relevant material from other studies as well as material from local and national Greek companies.

Bryde, et. al. (2005), mentions that when measuring project success we must consider the objectives of all stakeholders throughout the project life. He gives the following definition for project success: “the project is considered an overall success if the project meets the technical performance specification and/or mission to be performed, and if there is a high level of satisfaction concerning the project outcome among key people in the parent organization, key people in the project team and key users or clientele of project effort”. The key stakeholders for this study seem to be the client, the contractor and the project team. Anton de Wit believes that they must all be satisfied by the end of the project. He also proposes a project success framework. The basic concept of this framework is that the project objectives become the project success criteria. He concludes that measuring success is complex and the success or failure of a project depends on the different views of every stakeholder. In his opinion the objective measurement of project success could be sometimes impossible. There is an empirical study dealing specifically with success criteria for I.T. projects. Westerveld, (2003) did a survey of project managers and product users to find the most important criteria for success of I.T. projects. Over 100 projects were examined. The conclusion of the study was that project managers are concentrating on success criteria which may not be appropriate for the project. For project managers it is very important to meet timescales and budgets while for the users the criterion “happy users” is very important. To meet “user requirements” is the most important success criterion for I.T. projects according to the users and project managers though it appeared to mean differently to both groups. This study gives us two new success criteria related with the users of the final product. At their article Lim and Mohamed (1999) explore the issue of project success from different perspectives of people looking at the project. They believe that project success should be viewed from the perspective of the individual owner, developer, contractor, user and the general public. This explains why the same project could be considered a success by one and failure by another individual. They propose to classify project success into two categories: the macro and micro viewpoints.

1.1 Statement of the Problems

Over the last few years Cost, Time and Quality (C. T. Q.) have been linked with measuring a projects’ success. It is reasonable to believe that, if we meet the quality, time and cost targets for a project, it will be considered successful. Unfortunately, there are projects that meet all of the three targets and are yet considered failures. For example, a product that, although meets all the criteria, still has a very low commercial success! On the other hand we have those projects that do not meet any of the set targets and are still considered successful. It is obvious that there is a lack of understanding concerning other criteria that may influence project success.

1.2 Research Questions

In order to achieve the objectives of the study, the following research questions will be used by the researcher:

a. What effects do time, cost and quality have on client satisfaction with regards to construction projects?

b. What are the impacts of non-compliance with the time, cost and quality to client satisfaction?

c. What are the probable solution with the issue of time, cost and quality in meeting the client satisfaction?

1.3       Aim

The aim of this study is to asses the project success criteria (time, cost and quality) at meeting the client satisfaction.

1.4       Objectives of the Study

a. To determine the effects which time, cost and quality have on client satisfaction with regards to construction projects

b. To determine the impacts of non-compliance with the time, cost and quality to client satisfaction

c. To investigate the probable solution to non-compliance with the time, cost and quality in meeting the client satisfaction

1.4 Significance of the Study

The author expects that research conducted for this thesis will reveal new criteria for successful projects and add benefit to the basic criteria (cost time quality). It will also provide a complete set of project success criteria that can help project participants (management, clients, sponsors etc.) to channel their efforts in achieving successful projects. In addition, if the author discovers new criteria for project evaluation it will try to create indices in order for these criteria to be measurable (i.e. 30% of criterion x). Methodologies or strategies will be created in order to help organizations to implement the new criteria for the evaluation of their projects. Results will be shared freely with interested parties. All construction contracts allocate (contract duration) time between owners and contractors. Hence the significance of this study would better inform improved project relationships and communications and enhance construction administration practices between owners and contractors. The findings would also enhance and broaden time of wide range of risks that could materialize during the design, and construction phases of a project which would subsequently result in better and more prudent designs specifications.

1.5       Scope of the Study

The researcher will limit the study to the effects of time, cost and quality to client satisfaction within the construction industry, using some selected building under construction in Oyo State as a case study.

1.6       Definition of Terms

The definitions of special terms are derived from specialized dictionaries and the author’s general sources. All of them are terms frequently used in the science of Project Management. They are listed in alphabetical order.

Factor – “an element or cause that contributes to a result” (Collins Dictionary 2005)

Success criteria – “is the set of principles or standards by which project success is or can be judged” (Lim & Mohamed 1999)

Triple Constraint – “A framework for evaluating competing demands. The triple constraint is often depicted as a triangle where one of the sides or one of the corners represents one of the parameters being managed by the project team”.

User – “The person or organization that will use the project’s product or service”.

Quality – “is a meeting or exceeding customer expectation at a cost that represents a value to them” (Meredith & Mantel 2002)

1.6 Limitations of the Study

Construction of projects in the public sector has assumed different perspective, hence the need for assessment on the cost and time impacts of construction of projects in order to achieve overall project objectives. Historical project schedule and duration data is treated as confidential, hence getting data for this study was very difficult. Data collection and analysis will be therefore limited to the data received from project supervisors in the field of project construction.

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