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.
International Journal of Construction Management, 2020
Offering an apology can easily be taken as admission of liability that might well be the least th... more Offering an apology can easily be taken as admission of liability that might well be the least thing the apology offeror has intended. Apology legislations have been enacted in many countries to alleviate this worry. In Hong Kong, the first-ever apology ordinance was enacted in 2017. This study applies the Kelman's Response-Restriction Theory and examines if offering an apology would solicit positive responses of the counterpart by overcoming barriers against settlement in construction dispute negotiation (CDN). From a literature review, four forms of apology of potential use and six settlement barriers were identified. A pilot with practising mediators confirmed the potential use of these four forms of apology in CDN. With data collected from construction professionals in Hong Kong, multiple regression analyses were conducted. It is found that congruence-driving apology is the most versatile in moderating positive responses with respect to the six settlement barriers. However, only ice-breaking apology offers significant mediating effect in overcoming settlement barriers. It can be concluded that an apology is more likely to be a moderator than a mediator in CDN. In practical terms, the value of offering an apology is to solicit reciprocation of positive responses thereby fostering win-win outcome. It is further suggested that 1) offer which form of apology should be based on the nature of the settlement barrier; 2) an apology should be offered at an appropriate time and manner to maximise its effectiveness.
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.
This is a PDF file of an article that has undergone enhancements after acceptance, such as the ad... more This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.
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...
Micronization of ibuprofen using bottom-up process via rapid expansion of supercritical solution ... more Micronization of ibuprofen using bottom-up process via rapid expansion of supercritical solution (RESS) were conducted to investigate its effects on formation of micronized ibuprofen. Physicochemical properties of processed ibuprofen were analyzed using XRD, DSC, FT-IR, SEM, laser diffractometer and dissolution testing. Effects of extraction pressure, extraction temperature and nozzle diameter on particle size were optimized using Taguchi's orthogonal array and analyzed using analysis of variance (ANOVA). Processed ibuprofen retained its crystalline structure and has a similar chemical structure with unprocessed ibuprofen. The average particle size of ibuprofen was reduced from its original 48.549±2.304 µm into 3.765±0.024 µm under the optimum condition (T at 45 o C, P at 200 bar and nozzle diameter at 200 µm). The processed ibuprofen showed an enhanced its dissolution rate by 1.79 times compare to unprocessed ibuprofen.
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...
International Journal of Project Organisation and Management, 2015
Construction is a very competitive business in Hong Kong. Very often, no contingency is provided ... more Construction is a very competitive business in Hong Kong. Very often, no contingency is provided for the risks and uncertainties that may arise during the onsite production stage. It is therefore not uncommon to find contractors making use of the loopholes in the contract to raise claims and practise opportunistic acts to recoup loss due to excessive risk-taking. These phenomena can be found in transaction cost economics (TCE). The behavioural assumptions employed in TCE are bounded rationality and opportunism. Opportunism is of particular concern for transactions that involve asset specificity. Building on these conceptualisations, this study aims to enhance the understanding of opportunism in construction contracting through the identification of its minefield and manifestation as well as their occurrence likelihood. This study therefore posits that in construction contracting, incomplete contracts are minefield of opportunism and asset specificity informs opportunism manifestation.
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.
International Journal of Construction Management, 2020
Offering an apology can easily be taken as admission of liability that might well be the least th... more Offering an apology can easily be taken as admission of liability that might well be the least thing the apology offeror has intended. Apology legislations have been enacted in many countries to alleviate this worry. In Hong Kong, the first-ever apology ordinance was enacted in 2017. This study applies the Kelman's Response-Restriction Theory and examines if offering an apology would solicit positive responses of the counterpart by overcoming barriers against settlement in construction dispute negotiation (CDN). From a literature review, four forms of apology of potential use and six settlement barriers were identified. A pilot with practising mediators confirmed the potential use of these four forms of apology in CDN. With data collected from construction professionals in Hong Kong, multiple regression analyses were conducted. It is found that congruence-driving apology is the most versatile in moderating positive responses with respect to the six settlement barriers. However, only ice-breaking apology offers significant mediating effect in overcoming settlement barriers. It can be concluded that an apology is more likely to be a moderator than a mediator in CDN. In practical terms, the value of offering an apology is to solicit reciprocation of positive responses thereby fostering win-win outcome. It is further suggested that 1) offer which form of apology should be based on the nature of the settlement barrier; 2) an apology should be offered at an appropriate time and manner to maximise its effectiveness.
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.
This is a PDF file of an article that has undergone enhancements after acceptance, such as the ad... more This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.
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...
Micronization of ibuprofen using bottom-up process via rapid expansion of supercritical solution ... more Micronization of ibuprofen using bottom-up process via rapid expansion of supercritical solution (RESS) were conducted to investigate its effects on formation of micronized ibuprofen. Physicochemical properties of processed ibuprofen were analyzed using XRD, DSC, FT-IR, SEM, laser diffractometer and dissolution testing. Effects of extraction pressure, extraction temperature and nozzle diameter on particle size were optimized using Taguchi's orthogonal array and analyzed using analysis of variance (ANOVA). Processed ibuprofen retained its crystalline structure and has a similar chemical structure with unprocessed ibuprofen. The average particle size of ibuprofen was reduced from its original 48.549±2.304 µm into 3.765±0.024 µm under the optimum condition (T at 45 o C, P at 200 bar and nozzle diameter at 200 µm). The processed ibuprofen showed an enhanced its dissolution rate by 1.79 times compare to unprocessed ibuprofen.
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...
International Journal of Project Organisation and Management, 2015
Construction is a very competitive business in Hong Kong. Very often, no contingency is provided ... more Construction is a very competitive business in Hong Kong. Very often, no contingency is provided for the risks and uncertainties that may arise during the onsite production stage. It is therefore not uncommon to find contractors making use of the loopholes in the contract to raise claims and practise opportunistic acts to recoup loss due to excessive risk-taking. These phenomena can be found in transaction cost economics (TCE). The behavioural assumptions employed in TCE are bounded rationality and opportunism. Opportunism is of particular concern for transactions that involve asset specificity. Building on these conceptualisations, this study aims to enhance the understanding of opportunism in construction contracting through the identification of its minefield and manifestation as well as their occurrence likelihood. This study therefore posits that in construction contracting, incomplete contracts are minefield of opportunism and asset specificity informs opportunism manifestation.
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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