Introduction During the construction phase of the



A questionnaire survey is one of the most popular and effective
ways to consider the opinion of a large number of peoples in the process in
order to achieve better results. The previous chapters present the important prerequisite
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 and finally the
operation and maintenance during the concession period, for different
participants and from different stakeholders’ point of views. 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.


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


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


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
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. 

factors affecting opinions

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

–   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

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

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 Infrastructure and Heavy
Construction market requires different types of skills and high specialized engineers
and contractors. These types of projects currently, have urgent request in
Egypt and all development countries.


4.4     Company Size


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.


has been no commonly accepted definition of SMEs (Curran and Blackburn 2001).
Definitions vary from country or industrial sector to another. Various
definitions used by researchers and governments 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-sized businesses (SMBs) are
businesses whose personnel numbers within certain limits. The abbreviation
“SME” is used in the European Union and by international
organizations such as the United Nations, the World Trade Organization (WTO), and
the World Bank. 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
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.


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

Either turnover or balance sheet total.





Balance sheet


< 250 ? € 50 m ? € 43 m Small < 50 ? € 10 m ? € 10 m Micro < 10 ? € 2 m ? € 2 m   The European definition of SME follows: "The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro." EU countries' members have had individual border numbers of what constitutes an SME. For example, the definition in Germany had a limit of 255 employees, while in Belgium it could have been 100. In Australia, a small business is defined in 2009 as one with fewer than 15 employees. By comparison, a medium-sized business or mid-sized business has less than 500 employees in the US, and fewer than 200 in Australia.   Construction companies ranked in Egypt according to Egyptian Federation for Construction & Building Contractors (EFCBC).  EFCBC ranks all its members, according to their number of employees, previously executed projects and firm capital, into various size ranks. EFCBC till last three years was categorizing the construction companies in every sectors to seven levels based on the following criteria: Capital Assets; Highest yearly value of work during the last five years; Value of largest project totally executed during the last five years; Value of owned equipment; Company experience; Total numbers of technical, financial, legal and administrative staff;   Currently, categorize of construction companies changed to be based on the following data only: Highest yearly value of work during the last five years; Value of largest project totally executed during the last five years; Company experience;   Based on the above data, each recorded company in Egypt was classified and has its level in every different construction types which determine the maximum allowable tender size to participate and consequently construct.   4.7     Sample size In order to ensure that the data collected is reliable and adequate, it was necessary to have a population sample that is homogeneous and comprehensive.   Questionnaire 1 was submitted to special type of engineering whom are familiar or has enough experience in PPP projects. So, the normal ways to calculate the sample size are not suitable in this type of questionnaire which will directed to a special expert. Statistical methods for calculating the sample size are suitable and required for questionnaire number 2.   Before calculate the sample size, a few things about the target population and the sample need to define: Population Size — how many total people fit the requirements of the respondent? It is common for the population to be unknown or approximated. Margin of Error (Confidence Interval) — No sample will be perfect; all surveys need to decide how much error to allow. The confidence interval will determine how much higher or lower than the population mean are expected. It will look something like this: "68% of voters said yes to Proposition Z, with a margin of error of +/- 5%." Confidence Level — How confident the actual mean falls within the confidence interval? The most common confidence intervals are 90% confident, 95% confident and 99% confident. In this research 90% confident level was chosen (Z Score 1.645). Standard of Deviation — how much variance expected in responses? The common number to use 0.5 – and to ensure that the sample will be large enough.   The total numbers in engineers in Egypt according the Egyptian Engineering syndicate more than 650,000 Engineers in different engineering branches. This numbers covers all Egyptian governments and sure unreachable and also, about 100,000 engineers with experience less 5 years which is not suitable for the topic of measuring performance.   Based on the above population size may be considered 10% from the total acceptable level of experience engineers which is about 50,000 Engineers.    The Necessary Sample Size = (Z-score) ² * StdDev*(1-StdDev) / (Margin of error) ²   = (1.645)2 x 0.5 * 0.5 / (0.05)2 = 270 respondents are needed   Nearly the same results could be obtained from many sample size calculation equations considering the population size.   The actual numbers of respondents in the questionnaire number 2 are 230 respondents which represent confidence level about 87%.   The response rate 70% is not only common and acceptable but it could be considered very good compared with the opinions of Akintoye (2006) and Dolami et al (2003). They reported that the normal response rate in the construction industry for postal questionnaires is around 20-30 percent.   Summary 


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