Two special forms of bias, endowment and reactive devaluation are examined. Endowment effect (EE)... more Two special forms of bias, endowment and reactive devaluation are examined. Endowment effect (EE) describes the phenomenon that people would require more to relinquish items that they own than they would be willing to pay for the same. There are four sources of EE: ownership, loss aversion, status quo bias and strategic bargaining habit. It was further found that construction disputing parties from different construction sectors displayed a similar extent of EE behaviours in CDN. Reactive devaluation (RD) is another well-recognized psychological bias and describes the tendency of downgrading the value of offers proposed by the negotiating counterpart. Five taxonomies of RD behaviours in CDN were identified in this study. These are reluctance to change; doubts about counterpart’s ability; overconfidence; biased information processing and mistrust towards the counterpart. The potency of these taxonomies was validated with confirmatory factor analysis. The findings timely remind the co...
International Journal of Engineering Education, 2004
For educators at university level, acquiring new information to prepare and design creative cours... more For educators at university level, acquiring new information to prepare and design creative courses is a key to ensure the attractiveness and effectiveness of academic programmes. Nevertheless, educators are also expected to participate in value-added training such as education conferences, workshops, language and interpersonal skills seminars, and other continuing professional development-related activities. Furthermore, much time is also needed for research and administrative works. As such, less time is now available for discussion with students and out-classroom interactions. Indeed, effective learning requires active participation, peer supports and interactions. The diminishing traditional face-to-face interactions make it less contributive towards the provision of an active learning environment. This deficiency can be improved by using Web-based teaching/ learning. This paper presents a Web-based learning package, called the Construction Contracts Information Service (CCIS), ...
Conducive organisational culture has been identified as an essential organisational stabiliser an... more Conducive organisational culture has been identified as an essential organisational stabiliser and growth driver. Organisational culture represents the assumptions, beliefs and norms of an organisation shared by members of the organisation. However, cultural values of an organisation are difficult to be examined. Organisational scholars conceived that organisational culture can be expressed in a number of ways described as manifestations. Identity is one of the informing artifacts. This paper examines the notion of identity in the context of organisational culture. How identity affects the propensity to leave the organisation is illustrated by a study with quantity surveyors.
Contractors are often stepping into contracts that are notably inequitable as far as risks and re... more Contractors are often stepping into contracts that are notably inequitable as far as risks and responsibilities are concerned. In this study, Equity Gap (EG) is used to describe the differentials created ex ante between the developer and the contractor. This study analyses the roles of EG in cultivating disputes. Four EG elements are proposed: information, risk, power and return on efforts. The conceptualisation of EG was achieved by arranging the EG elements into a framework. This representation enabled statistical testing of the framework. Data were collected from 106 senior project professionals with almost numbers working for developer and contractor respectively. The conceptual framework was validated through PLS-SEM analysis. The followings are recommended to bridge EG ex post: (a) Setting relational incentive to balance power differential; (b) Allowing reallocation of risk and return as deemed necessary and appropriate; and (c) Enhancing tasks programmability for ease of monitoring and evaluation. It is believed that by addressing EG ex post, the chance of having disputes would be reduced.
Proceedings of International Structural Engineering and Construction, 2016
High price of private residential units is a social issue for many economies. The property price ... more High price of private residential units is a social issue for many economies. The property price of many developed cities has risen beyond reach of the general public. In 1996, the Hong Kong Consumer Council also commented that the residential market is quite concentrated. The enactment of the Hong Kong Competition Ordinance echoes the need to look into the market competition level so as to better protect consumer welfare. Market concentration is a major indicator to measure competition. The primary aim of this study is to evaluate the concentration level of the private new residential market in Hong Kong. The concentration level is mainly evaluated by concentration measures including the Concentration Ratio and Hirfindahl-Hirschman index. The result shows that the top five developers are holding a dominant position in the market. It is envisaged that the big developers could retain their dominance due to their substantial land bank.
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2020
It has been reported that the average dispute value (the additional entitlement included in the c... more It has been reported that the average dispute value (the additional entitlement included in the contract to resolve disputes) was US $84 million and average length of dispute (the period between the time a dispute is formalized and it is settled) was 14.6 months in Asia in the year of 2016 (Arcadis Global Construction Dispute Report 2017). These figures are not impressive in terms of the non-productive use of valuable resources. Endowment effect (EE), which was firstly coined by 2017 Nobel laureate in economics science professor Richard Thaler, is a behavioral phenomenon that people attribute more value to the things they own. EE would derail making rational decisions. This study explores the application of EE on disputants' behavior in construction project dispute resolution (CPDR). In this regard, four sources of EE in CPDR were identified. These are i) ownership, ii) loss aversion, iii) status quo bias and iv) bargaining habit.
Engineering, Construction and Architectural Management, 2019
Purpose This study aims to propose a framework of bias in construction project dispute resolution... more Purpose This study aims to propose a framework of bias in construction project dispute resolution (CPDR hereafter). Design/methodology/approach With reference to the literatures on effects of bias, manifestations of bias in CPDR were developed. Based on data obtained from construction professionals about their frequency of having these bias manifestations, the underlying constructs of biased behaviors were explored by a principal component factor analysis. A confirmatory factor analysis was further conducted to validate the framework of bias in CPDR. Findings Four types of bias were identified as the constructs that underlie biased behaviors in CPDR. These four biases were included in the bias framework proposed: preconception, self-affirmation, optimism and interest-oriented. The potency of these types of bias was also evaluated. Practical implications First, the findings inform that the existence of bias in CPDR is real. Early detection allows management to intervene and steer CPD...
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2017
AbstractThis study aims to contribute to the development of adjudication as an effective alternat... more AbstractThis study aims to contribute to the development of adjudication as an effective alternative dispute resolution mechanism under the Hong Kong proposed security of payment legislation (HKSOP...
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2016
AbstractRising construction costs are of great concern in all development projects. Cost increase... more AbstractRising construction costs are of great concern in all development projects. Cost increases may be the result of inflation but can also be attributable to malpractice, such as bid rigging. This paper first discusses bid rigging in general and focuses on agreements not to compete to illustrate the pitfalls of this relatively more subtle form of bid rigging. Decided cases from Hong Kong and the United Kingdom are used to illustrate that the common law approach to knock-out agreements, whereby potential buyers agree not to bid at an auction, finds them lawful. However, these cases were decided with regard to criminal charges of conspiracy to defraud and deceive. An agreement not to compete per se is insufficient to constitute conspiracy and deceit in common law. This study revisits the nature of such agreements from an anticompetition perspective and in light of the Hong Kong Competition Ordinance (CO). It is argued that agreements not to compete are anticompetition. Notwithstanding that such agreemen...
Australasian Journal of Construction Economics and Building, 2011
Michael Y. Mak and Albert T. So, City University of Hong Kong Press, ISBN:978-962-178-4 paperback... more Michael Y. Mak and Albert T. So, City University of Hong Kong Press, ISBN:978-962-178-4 paperback 304 pages, USD 29.00
Despite many competing software systems being of- fered by different vendors, studies in informat... more Despite many competing software systems being of- fered by different vendors, studies in information technology (IT) adoption rarely look at the adoption of competing products. We de- velop an extended theory of planned behavior (TPB), drawn from social psychology and marketing theories, to predict choice inten- tion and subsequently the choice of two products. The extended TPB is used to
... 560 Cheung and Suen Table 2 Summary of critical selection criteria in dispute resolution ... ... more ... 560 Cheung and Suen Table 2 Summary of critical selection criteria in dispute resolution ... In the ADR process, however, the neutral would attempt to satisfy the aspirations of the parties by coming up with a 'win–win' settlement. Degree of control by parties ...
This paper explores the current practice of capital budget planning and control in the Hong Kong ... more This paper explores the current practice of capital budget planning and control in the Hong Kong (HK) construction industry, based on two surveys undertaken in 1994 and 1999. The aims of these surveys were to uncover the financial planning, monitoring and control procedures used by building engineering contractors in HK. The results of the current survey reveal that less than
Two special forms of bias, endowment and reactive devaluation are examined. Endowment effect (EE)... more Two special forms of bias, endowment and reactive devaluation are examined. Endowment effect (EE) describes the phenomenon that people would require more to relinquish items that they own than they would be willing to pay for the same. There are four sources of EE: ownership, loss aversion, status quo bias and strategic bargaining habit. It was further found that construction disputing parties from different construction sectors displayed a similar extent of EE behaviours in CDN. Reactive devaluation (RD) is another well-recognized psychological bias and describes the tendency of downgrading the value of offers proposed by the negotiating counterpart. Five taxonomies of RD behaviours in CDN were identified in this study. These are reluctance to change; doubts about counterpart’s ability; overconfidence; biased information processing and mistrust towards the counterpart. The potency of these taxonomies was validated with confirmatory factor analysis. The findings timely remind the co...
International Journal of Engineering Education, 2004
For educators at university level, acquiring new information to prepare and design creative cours... more For educators at university level, acquiring new information to prepare and design creative courses is a key to ensure the attractiveness and effectiveness of academic programmes. Nevertheless, educators are also expected to participate in value-added training such as education conferences, workshops, language and interpersonal skills seminars, and other continuing professional development-related activities. Furthermore, much time is also needed for research and administrative works. As such, less time is now available for discussion with students and out-classroom interactions. Indeed, effective learning requires active participation, peer supports and interactions. The diminishing traditional face-to-face interactions make it less contributive towards the provision of an active learning environment. This deficiency can be improved by using Web-based teaching/ learning. This paper presents a Web-based learning package, called the Construction Contracts Information Service (CCIS), ...
Conducive organisational culture has been identified as an essential organisational stabiliser an... more Conducive organisational culture has been identified as an essential organisational stabiliser and growth driver. Organisational culture represents the assumptions, beliefs and norms of an organisation shared by members of the organisation. However, cultural values of an organisation are difficult to be examined. Organisational scholars conceived that organisational culture can be expressed in a number of ways described as manifestations. Identity is one of the informing artifacts. This paper examines the notion of identity in the context of organisational culture. How identity affects the propensity to leave the organisation is illustrated by a study with quantity surveyors.
Contractors are often stepping into contracts that are notably inequitable as far as risks and re... more Contractors are often stepping into contracts that are notably inequitable as far as risks and responsibilities are concerned. In this study, Equity Gap (EG) is used to describe the differentials created ex ante between the developer and the contractor. This study analyses the roles of EG in cultivating disputes. Four EG elements are proposed: information, risk, power and return on efforts. The conceptualisation of EG was achieved by arranging the EG elements into a framework. This representation enabled statistical testing of the framework. Data were collected from 106 senior project professionals with almost numbers working for developer and contractor respectively. The conceptual framework was validated through PLS-SEM analysis. The followings are recommended to bridge EG ex post: (a) Setting relational incentive to balance power differential; (b) Allowing reallocation of risk and return as deemed necessary and appropriate; and (c) Enhancing tasks programmability for ease of monitoring and evaluation. It is believed that by addressing EG ex post, the chance of having disputes would be reduced.
Proceedings of International Structural Engineering and Construction, 2016
High price of private residential units is a social issue for many economies. The property price ... more High price of private residential units is a social issue for many economies. The property price of many developed cities has risen beyond reach of the general public. In 1996, the Hong Kong Consumer Council also commented that the residential market is quite concentrated. The enactment of the Hong Kong Competition Ordinance echoes the need to look into the market competition level so as to better protect consumer welfare. Market concentration is a major indicator to measure competition. The primary aim of this study is to evaluate the concentration level of the private new residential market in Hong Kong. The concentration level is mainly evaluated by concentration measures including the Concentration Ratio and Hirfindahl-Hirschman index. The result shows that the top five developers are holding a dominant position in the market. It is envisaged that the big developers could retain their dominance due to their substantial land bank.
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2020
It has been reported that the average dispute value (the additional entitlement included in the c... more It has been reported that the average dispute value (the additional entitlement included in the contract to resolve disputes) was US $84 million and average length of dispute (the period between the time a dispute is formalized and it is settled) was 14.6 months in Asia in the year of 2016 (Arcadis Global Construction Dispute Report 2017). These figures are not impressive in terms of the non-productive use of valuable resources. Endowment effect (EE), which was firstly coined by 2017 Nobel laureate in economics science professor Richard Thaler, is a behavioral phenomenon that people attribute more value to the things they own. EE would derail making rational decisions. This study explores the application of EE on disputants' behavior in construction project dispute resolution (CPDR). In this regard, four sources of EE in CPDR were identified. These are i) ownership, ii) loss aversion, iii) status quo bias and iv) bargaining habit.
Engineering, Construction and Architectural Management, 2019
Purpose This study aims to propose a framework of bias in construction project dispute resolution... more Purpose This study aims to propose a framework of bias in construction project dispute resolution (CPDR hereafter). Design/methodology/approach With reference to the literatures on effects of bias, manifestations of bias in CPDR were developed. Based on data obtained from construction professionals about their frequency of having these bias manifestations, the underlying constructs of biased behaviors were explored by a principal component factor analysis. A confirmatory factor analysis was further conducted to validate the framework of bias in CPDR. Findings Four types of bias were identified as the constructs that underlie biased behaviors in CPDR. These four biases were included in the bias framework proposed: preconception, self-affirmation, optimism and interest-oriented. The potency of these types of bias was also evaluated. Practical implications First, the findings inform that the existence of bias in CPDR is real. Early detection allows management to intervene and steer CPD...
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2017
AbstractThis study aims to contribute to the development of adjudication as an effective alternat... more AbstractThis study aims to contribute to the development of adjudication as an effective alternative dispute resolution mechanism under the Hong Kong proposed security of payment legislation (HKSOP...
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2016
AbstractRising construction costs are of great concern in all development projects. Cost increase... more AbstractRising construction costs are of great concern in all development projects. Cost increases may be the result of inflation but can also be attributable to malpractice, such as bid rigging. This paper first discusses bid rigging in general and focuses on agreements not to compete to illustrate the pitfalls of this relatively more subtle form of bid rigging. Decided cases from Hong Kong and the United Kingdom are used to illustrate that the common law approach to knock-out agreements, whereby potential buyers agree not to bid at an auction, finds them lawful. However, these cases were decided with regard to criminal charges of conspiracy to defraud and deceive. An agreement not to compete per se is insufficient to constitute conspiracy and deceit in common law. This study revisits the nature of such agreements from an anticompetition perspective and in light of the Hong Kong Competition Ordinance (CO). It is argued that agreements not to compete are anticompetition. Notwithstanding that such agreemen...
Australasian Journal of Construction Economics and Building, 2011
Michael Y. Mak and Albert T. So, City University of Hong Kong Press, ISBN:978-962-178-4 paperback... more Michael Y. Mak and Albert T. So, City University of Hong Kong Press, ISBN:978-962-178-4 paperback 304 pages, USD 29.00
Despite many competing software systems being of- fered by different vendors, studies in informat... more Despite many competing software systems being of- fered by different vendors, studies in information technology (IT) adoption rarely look at the adoption of competing products. We de- velop an extended theory of planned behavior (TPB), drawn from social psychology and marketing theories, to predict choice inten- tion and subsequently the choice of two products. The extended TPB is used to
... 560 Cheung and Suen Table 2 Summary of critical selection criteria in dispute resolution ... ... more ... 560 Cheung and Suen Table 2 Summary of critical selection criteria in dispute resolution ... In the ADR process, however, the neutral would attempt to satisfy the aspirations of the parties by coming up with a 'win–win' settlement. Degree of control by parties ...
This paper explores the current practice of capital budget planning and control in the Hong Kong ... more This paper explores the current practice of capital budget planning and control in the Hong Kong (HK) construction industry, based on two surveys undertaken in 1994 and 1999. The aims of these surveys were to uncover the financial planning, monitoring and control procedures used by building engineering contractors in HK. The results of the current survey reveal that less than
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