An MCDM analysis of critical success criteria for medium and large construction projects in Australia and New Zealand

Abstract

Purpose

The global construction industry has a history of poor project success, with evident and frequent overruns in cost and schedule. This industry is a highly interconnected and complex system in which the components, i.e. suppliers, contractors, end-users, and stakeholders, are delicately linked to each other, the community, and the environment. Therefore, defining and measuring project success can be challenging for sponsors, contractors, and the public. To address this issue, this study develops and analyzes a more comprehensive set of success criteria for medium and large construction projects.

Design/methodology/approach

After reviewing the existing literature, this study identified 19 success criteria for medium and large construction projects, which were categorized into five groups. The fuzzy decision-making trial and evaluation laboratory (fuzzy DEMATEL) method was used to gain further insight into the interrelationships between these categories and explain the cause-and-effect relationships among them. Next, this study applied the modified logarithmic least squares method to determine the importance weight of these criteria using the fuzzy analytic hierarchy process.

Findings

28 project managers working in the construction industries in Australia and New Zealand participated in this study. Results suggest that “project efficiency” and “impacts on the project team” are cause criteria that affect “business success,” “impacts on stakeholders,” and “impacts on end-users.” Effective risk management emerged as the most crucial criterion in project efficiency, while customer satisfaction and return on investment are top criteria in “impacts on end-users” and “business success.”

Originality/value

Although numerous studies have been conducted on project success criteria, multicriteria analyses of success criteria are rare. This paper presents a comprehensive set of success criteria tailored to medium and large construction projects. The aim is to analyze their interrelationships and prioritize them thoroughly, which will aid practitioners in focusing on the most important criteria for achieving higher success rates.

Citation

Kiani Mavi, N., Brown, K., Fulford, R.G. and Goh, M. (2024), "An MCDM analysis of critical success criteria for medium and large construction projects in Australia and New Zealand", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-08-2023-0838