Investing for impact : Constructing a better built environment

This publication, Investing for Impact, is a key outcome of Project 2.7 Leveraging R&D Investment for the Australian Built Environment. This information will be included in a more comprehensive book being prepared for publication in 2014 (Taylor and Francis). It draws together research findings and case studies from CIB Task Group 85 members from across the globe, highlighting their diversity and similarities. The evaluation of international case studies on the role and impact of R&D on national development has allowed us to demonstrate examples from different sectors of the built environment of R&D investment models that provide return on investment and other benefits for companies, governments and the general community.

Modelling, collaboration and integration : a case study for the delivery of public buildings

An evolution in the use of digital modelling has occurred in the Queensland Department of Public Works Division of Project Services over the last 20 years from: the initial implementation of computer aided design and documentation (CADD); to experimentation with building information modelling (BIM); to embedding integrated practice (IP); to current steps towards integrated project delivery (IPD) including the active involvement of consultants and contractors in the design/delivery process. This case study is one of three undertaken through the Australian Sustainable Built Environment National Research Centre investigating past R&D investment. The intent of these cases is to inform the development of policy guidelines for future investment in the construction industry in Australia. This research is informing the activities of CIB Task Group 85 R&D Investment and Impact. The uptake of digital modelling by Project Services has been approached through an incremental learning approach. This has been driven by a strong and clear vision with a focus on developing more efficient delivery mechanisms through the use of new technology coupled with process change. Findings reveal an organisational focus on several areas including: (i) strategic decision making including the empowerment of innovation leaders and champions; (ii) the acquisition and exploitation of knowledge; (iii) product and process development (with a focus on efficiency and productivity); (iv) organisational learning; (v) maximising the use of technology; and (vi) supply chain integration. Key elements of this approach include pilot projects, researcher engagement, industry partnerships and leadership.

The construction contract bidder homogeneity assumption : an empirical test

This paper describes an empirical study to test the proposition that all construction contract bidders are homogeneous ie. they can be treated as behaving collectively in an identical (statistical) manner. Examination of previous analyses of bidding data reveals a flaw in the method of standardising bids across different size contracts and a new procedure is proposed which involves the estimation of a contract datum. Three independent sets of bidding data were then subjected to this procedure and estimates of the necessary distributional parameters obtained. These were then tested against the bidder homogeneity assumption resulting in the conclusion that the assumption may be appropriate for a three parameter log-normal shape, but not for scale and location.

Mobile cost estimating

Martin Skitmore introduces a most "remarkable couple", Rod and Annie Stewart of Huntsville, Alabama (and elsewhere), and their post retirement business, Mobile Data Services. Contrary to popular expectations, Rod and Annie are not only computer-friendly, but are almost entirely dependent on the new technology for their survival.

The effect of project information on the accuracy of building price forecasts

A fundamental proposition is that the accuracy of the designer's tender price forecasts is positively correlated with the amount of information available for that project. The paper describes an empirical study of the effects of the quantity of information available on practicing Quantity Surveyors' forecasting accuracy. The methodology involved the surveyors repeatedly revising tender price forecasts on receipt of chunks of project information. Each of twelve surveyors undertook two projects and selected information chunks from a total of sixteen information types. The analysis indicated marked differences in accuracy between different project types and experts/non-experts. The expert surveyors' forecasts were not found to be significantly improved by information other than that of basic building type and size, even after eliminating project type effects. The expert surveyors' forecasts based on the knowledge of building type and size alone were, however, found to be of similar accuracy to that of average practitioners pricing full bills of quantities.

The image of the Hungarian and UK building industries : a comparative analysis

Concern that poor image of UK construction industry is restricting recruitment has lead to call for action. This paper gives the results of a recent comparative analysis of the image of both UK and Hungarian industries which indicates the UK image to be relatively good. The perceived cause of Hungarian problems is the poor level of organisation and management.

A multivariate approach to bidding strategies

A multivariate approach to bidding strategy is presented in comparison with previous standard approaches. An optimal formulation is derived and a method of parameter estimation proposed. A case study illustrates the derivation of optimal and other strategic mark up values against a single bidder. Concluding remarks concern extensions to multiple competitors differing levels of information, and sensitivity analysis.

Which estimating technique?

This paper presents a unified view of the relationship between (1) quantity and (2) price generating mechanisms in estimating individual prime construction costs/prices. A brief review of quantity generating techniques is provided with particular emphasis on experientially based assumptive approaches and this is compared with the level of pricing data available for the quantities generated in terms of reliability of the ensuing prime cost estimates. It is argued that there is a tradeoff between the reliability of quantity items and reliability of rates. Thus it is shown that the level of quantity generation is optimised by maximising the joint reliability function of the quantity items and their associated rates. Some thoughts on how this joint reliability function can be evaluated and quantified follow. The application of these ideas is described within the overall strategy of the estimator's decision - "Which estimating technique shall I use for a given level of contract information? - and a case is made for the computer generation of estimates by several methods, with an indication of the reliability of each estimate, the ultimate choice of estimate being left to the estimator concerned. Finally, the potential for the development of automatic estimating systems within this framework is examined.

Heuristics and building price forecasting

The construction industry contains two types of estimators the contractors' estimator and the designers' price forecaster. Each has two models of the building in which to systemize his procedures - the production model and the design model. The use of these models is discussed in the light of the industry's particular problems of complexity and uncertainty together with the pressures of the market. It is argued that estimators and forecasters, in order to function effectively in these conditions, are forced to exercise a high degree of subjective judgment. Means of eliciting good heuristics involved in judgment making are considered by reference to the artificial intelligence and construction literature and a methodology is proposed based on these findings. The results of two early trials of the method with students are given, indicating the usefulness of the approach.

The distribution of construction project bids

This paper describes an analysis of construction project bids to determine (a) the global distribution and (b) factors influencing the distribution of bids. The global distribution of bids was found, by using a battery of ll test statistics, to be approximated by a three-parameter log normal distribution. No global spread parameter was found. A multivariate analysis revealed the year of tender to be the major influencing factor. Consideration of the construction order, tender price and output indices lead to the conclusion that distributional spread reflected the degree of difference in pricing policies between bidders and the skewness of the distributions reflected the degree of competition. The paper concludes with a tentative model of the causal relationships between the factors and distributional characteristics involved.

Theoretical framework for a management decision evaluation system

A theoretical framework for a construction management decision evaluation system for project selection by means of a literature review. The theory is developed by the examination of the major factors concerning the project selection decision from a deterministic viewpoint, where the decision-maker is assumed to possess 'perfect knowledge' of all the aspects involved. Four fundamental project characteristics are identified together with three meaningful outcome variables. The relationship within and between these variables are considered together with some possible solution techniques. The theory is next extended to time-related dynamic aspects of the problem leading to the implications of imperfect knowledge and a non­deterministic model. A solution technique is proposed in which Gottinger's sequential machines are utilised to model the decision process,