Reforming the procurement of construction and financing of Australian infrastructure : advancing capacity, competition and investment

Funded by an Australian Research Council (ARC) Linkage grant over four years (2009–13), the Major Infrastructure Procurement project sought to find more effective and efficient ways of procuring and delivering the nation’s social and economic infrastructure by investigating constraints relating to construction capacity, competition, and finance in new public sector major infrastructure.1 The research team comprised researchers in construction economics and finance from Queensland University of Technology (QUT), Griffith University (GU), The University of Hong Kong (UHK), and The University of Newcastle (UoN). Project partners included state government departments and agencies responsible for infrastructure procurement and delivery from all Australian mainland states, and private sector companies and peak bodies in the infrastructure sector (see “Introduction” for complete list). There are a number of major outcomes from this research project. The first of these is a scientifically developed decisionmaking model for procurement of infrastructure that deploys a novel and state-of-the-art integration of dominant microeconomic theory (including theories developed by two Nobel Prize winners). The model has been established through empirical testing and substantial experiential evidence as a valid and reliable guide to configuring procurement of new major and mega infrastructure projects in pursuance of superior Valuefor- Money (VfM). The model specifically addresses issues of project size, bundling of contracts, and exchange relationships. In so doing, the model determines the suitability of adopting a Public-Private Partnership (PPP) mode.

Cost estimating practice incorporating Building Information Modelling (BIM): Malaysian Quantity Surveyors perspectives

Cost estimating is a key task within Quantity Surveyors’ (QS) offices. Provision of an accurate estimate is vital to ensure that the objectives of the client are met by staying within the client’s budget. Building Information Modelling (BIM) is an evolving technology that has gained attention in the construction industries all over the world. Benefits from the use of BIM include cost and time savings if the processes used by the procurement team are adapted to maximise the benefits of BIM. BIM can be used by QSs to automate aspects of quantity take-off and the preparation of estimates, decreasing turnaround time and assist in controlling errors and inaccuracies. The Malaysian government has decided to require the use of BIM for its projects beginning from 2016. However, slow uptake is reported in the use of BIM both within companies and to support collaboration within the Malaysian industry. It has been recommended that QSs to start evaluating the impact of BIM on their practices. This paper reviews the perspectives of QSs in Malaysia towards the use of BIM to achieve more dependable results in their cost estimating practice. The objectives of this paper include identifying strategies in improving practice and potential adoption drivers that lead QSs to BIM usage in their construction projects. From the expert interviews, it was found out that, despite still using traditional methods and not practising BIM, the interviewees still acquire limited knowledge related to BIM. There are some drivers that potentially motivate them to employ BIM in their practices. These include client demands, innovation in traditional methods, speed in estimating costs, reduced time and costs, improvement in practices and self-awareness, efficiency in projects, and competition from other companies. The findings of this paper identify the potential drivers in encouraging Malaysian Quantity Surveyors to exploit BIM in their construction projects.

Deriving optimal competition in infrastructure procurement

Typically only a limited number of consortiums are able to competitively bid for Public Private Partnership (PPP) projects. Consequently, this may lead to oligopoly pricing constraints and ineffective competition, thus engendering ex ante market failure. In addressing this issue, this paper aims to determine the optimal number of bidders required to ensure a healthy level of competition is available to procure major infrastructure projects. The theories of Structure-Conduct-Performance (SCP) paradigm; Game Theory and Auction Theory and Transaction Cost Economics are reviewed and discussed and used to produce an optimal level of competition for major infrastructure procurement, that prevents market failure ex ante (lack of competition) and market failure ex post (due to asymmetric lock-in).

Sleep quantity and quality during heat-based training and the effects of cold-water immersion recovery

- Introduction Heat-based training (HT) is becoming increasingly popular as a means of inducing acclimation before athletic competition in hot conditions and/or to augment the training impulse beyond that achieved in thermo-neutral conditions. Importantly, current understanding of the effects of HT on regenerative processes such as sleep and the interactions with common recovery interventions remain unknown. This study aimed to examine sleep characteristics during five consecutive days of training in the heat with the inclusion of cold-water immersion (CWI) compared to baseline sleep patterns. - Methods Thirty recreationally-trained males completed HT in 32 ± 1 °C and 60% rh for five consecutive days. Conditions included: 1) 90 min cycling at 40 % power at VO2max (Pmax) (90CONT; n = 10); 90 min cycling at 40 % Pmax with a 20 min CWI (14 ± 1 °C; 90CWI; n = 10); and 30 min cycling alternating between 40 and 70 % Pmax every 3 min, with no recovery intervention (30HIT; n = 10). Sleep quality and quantity was assessed during HT and four nights of 'baseline' sleep (BASE). Actigraphy provided measures of time in and out of bed, sleep latency, efficiency, total time in bed and total time asleep, wake after sleep onset, number of awakenings, and wakening duration. Subjective ratings of sleep were also recorded using a 1-5 Likert scale. Repeated measures analysis of variance (ANOVA) was completed to determine effect of time and condition on sleep quality and quantity. Cohen's d effect sizes were also applied to determine magnitude and trends in the data. - Results Sleep latency, efficiency, total time in bed and number of awakenings were not significantly different between BASE and HT (P > 0.05). However, total time asleep was significantly reduced (P = 0.01; d = 1.46) and the duration periods of wakefulness after sleep onset was significantly greater during HT compared with BASE (P = 0.001; d = 1.14). Comparison between training groups showed latency was significantly higher for the 30HIT group compared to 90CONT (P = 0.02; d = 1.33). Nevertheless, there were no differences between training groups for sleep efficiency, total time in bed or asleep, wake after sleep onset, number of awakenings or awake duration (P > 0.05). Further, cold-water immersion recovery had no significant effect on sleep characteristics (P > 0.05). - Discussion Sleep plays an important role in athletic recovery and has previously been demonstrated to be influenced by both exercise training and thermal strain. Present data highlight the effect of HT on reduced sleep quality, specifically reducing total time asleep due to longer duration awake during awakenings after sleep onset. Importantly, although cold water recovery accelerates the removal of thermal load, this intervention did not blunt the negative effects of HT on sleep characteristics. - Conclusion Training in hot conditions may reduce both sleep quantity and quality and should be taken into consideration when administering this training intervention in the field.

Market Structures in Air Conditioning Maintenance Activity

It is questionable whether activities like construction, including maintenance and repair, can be considered a single entity or industry - on the basis that different sectors of construction/maintenance use fundamentally distinct resource and skill bases. This creates a number of issues including the development of competition and reform policy. de Valance deployed the Structure-Conduct-Performance model (SCP) to delineate sectors of new/installation construction activity and, in doing so, proposes that there exists multiple market structures in a given project. The purpose of this paper is to apply the SCP model to a different sector of construction activity, that is air conditioning maintenance and test de Valance's proposition concerning the existence of multiple market structures in a supply chain but this time to a built facility. The research method combines secondary data concerning the "Structure" component of the SCP model and primary data with regard to the "Conduct" and "Performance" parts of the SCP model. The results provide further support (beyond de Valance's analysis of new/installation activity) that a sector system approach using the SCP model is a more effective way to analyse market structures in construction activity. This paper also supports de Valance's proposition concerning the existence of multiple market structures in a supply chain to a project/facility.

The Get Marketer Challenge Innovation: Challenging students using a tournament style competition

This paper presents an assessment innovation which used a tournament style competition to challenge and engage first year marketing students. The course-wide competition required student teams to solve real-world marketing problems for industry sponsors. Student feedback reflects enjoyment of the task and the competition, with students welcoming the opportunity to put theory into practice. Student attendance in the lectures and tutorials involving team presentations was improved. This structure can be adapted for any course with large enrolments. We recommend that instructors adopting a tournament structure consider grading mechanisms that promote equal effort and additional rewards, such as bonus marks, for teams progressing in subsequent rounds.

Synopolies: The use of cryptographic technologies to impede competition in multiple jurisdictions

Many jurisdictions have developed mature infrastructures, both administratively and legislatively, to promote competition. Substantial funds have been expended to monitor activities that are anticompetitive and many jurisdictions also have adopted a form of "Cartel Leniency Program", first developed by the US Federal Trade Commission, to assist in cartel detection. Further, some jurisdictions are now criminalizing cartel behaviour so that cartel participants can be held criminally liable with substantial custodial penalties imposed. Notwithstanding these multijurisdictional approaches, a new form of possibly anticompetitive behaviour is looming. Synergistic monopolies („synopolies‟) involve not competitors within a horizontal market but complimentors within separate vertical markets. Where two complimentary corporations are monopolists in their own market they can, through various technologies, assist each other to expand their respective monopolies thus creating a barrier to new entrants and/or blocking existing participants from further participation in that market. The nature of the technologies involved means that it is easy for this potentially anti-competitive activity to enter and affect the global marketplace. Competition regulators need to be aware of this potential for abuse and ensure that their respective competition frameworks appropriately address this activity. This paper discusses how new technologies can be used to create a synopoly.

Competition laws and policies in China and Hong Kong : a tale of two regulatory journeys

Reviews the background to China's enactment of the Anti-Monopoly Law in 2007 and compares the debate surrounding the proposed introduction of similar legislation in Hong Kong. Examines the main issues arising during the Law's 13 year drafting stage, its key provisions and the remaining areas of uncertainty concerning its enforcement. Discusses ongoing efforts to introduce competition law regulations in Hong Kong, the main features of the draft General Competition Law and the shortcomings of its approach to penalties and exemptions.

The economics of credence goods: An experimental investigation of the role of verifiability, liability, competition and reputation in credence goods markets

Credence goods markets are characterized by asymmetric information between sellers and consumers that may give rise to inefficiencies, such as under- and overtreatment or market break-down. We study in a large experiment with 936 participants the determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields efficiency, we find that liability has a crucial, but verifiability only a minor effect. Allowing sellers to build up reputation has little influence, as predicted. Seller competition drives down prices and yields maximal trade, but does not lead to higher efficiency as long as liability is violated.