Productivity measurement of the construction industry in Australia

This research adopts the Malmquist total factor productivity model with Lovell's decomposition and renovated partial factor model to evaluate changes of productivity levels in Australia's construction industry. Research results find that the average annual productivity levels for Australian states are slowly growing, except for Queensland's total factor and capital productivities.

Using a knowledge management evaluation framework for improving an ERP system - a Hong Kong construction industry case study

Organisations need to rely on leadership, information support and human capital in order to ensure a knowledge advantage over their competitors. Knowledge management (KM) provides organisations with sustainable competitive advantage, because it becomes extremely difficult for an organisation to cut expenditure and increase revenue by simply reengineering its business model. Project delivery and success has been traditionally viewed and measured as management of a three-legged stool, with the legs defined as cost, schedule and quality. However, KM can be linked to success by organisations becoming more effective as well as being more efficient.

This paper uses a KM framework, the Knowledge Advantage (K-Adv), developed initially for use by construction organisations. It assesses the impact of leadership and its supporting information communication technology infrastructure on the ability of people (by effectively creating, sharing, disseminating and using knowledge) to facilitate sustainable competitive advantage.

A case study that is presented is based upon the experience of a leading construction company using an Enterprise Resources Planning (ERP) system to demonstrate the effectiveness of KM from a cost management business unit perspective. Results are evaluated using a capability maturity model (CMM) - that forms the core of the K-Adv tool - to help improve processes that meet the needs of the organisation operating in a highly dynamic business environment. The case study is part of a broader doctoral research project that uses action learning to facilitate and measure ERP improvement.

The application of electronic commerce and information integration in the construction industry

Many parties involved in the construction industry have convinced the importance of electronic commerce (EC) for improving business processes, cutting cost, and providing comprehensive information. However, currently the application of EC is relatively limited and ineffective. These systems are always non-interoperable which creates problems for the stakeholders in construction projects. This paper aims to analyze the E-commerce application system and develop a system for the parties to collaborate and share information effectively. In this paper, four information flats are summarized based on the literature survey and field investigation, and the information integration model for EC is built up using IFC and XML. It should provide a useful reference for China to promote the development of EC in the construction industry.

An overview of previous studies in stakeholder management and its implications for construction industry

Purpose – The purpose of this paper is to provide an overview of previous studies in the field of stakeholder management, and propose implications for the construction industry.

Design/methodology/approach – Three major databases are searched: ABI, EI CompendexWeb, and ISI web of knowledge. Papers are searched on topic by using the keywords of “stakeholder management”, “management of stakeholders” and “management of stakeholder”. A brief review of the abstracts and conclusions of these papers is conducted to filter out the irrelevant and/or duplicate papers. After filtering, 159 articles with content relevant to stakeholder management are selected for analysis.

Findings – An overview of previous studies reveals that research interest in stakeholder management has turned to the descriptive approach. Through a critical review of stakeholder management process, three main problems of previous studies are identified: very few methods and tools are available to identify all stakeholders and their interests; limited studies involve the change management about the stakeholders' influence and relationship; and few studies are capable of reflecting the influence of the entire relationship network in practice.

Research limitations/implications – Two implications for the construction industry are suggested: establish a practical framework for managing stakeholders; and apply social network theory (SNT) in developing a stakeholder relationship model.

Originality/value – The overview and implications lead to new knowledge and an improved understanding of the management of multiple stakeholders in construction projects. The perspective of SNT avoids the deficiency of Freeman's dyadic ties model, and the project managers can make decisions in response to the stakeholder behaviours according to the entire relationship.

A critical analysis of techniques for risk mitigation in the construction industry

Risks exist in every form of construction project. The risks associated with construction projects are often diverse and varied and the management of these risks is nowadays considered compulsory in order to achieve project success. This paper analyses the diverse strategies of risk mitigation that have been employed in construction projects. These strategies are classified into analysed categories of procurement strategies. contingency and co-operative approach along with the utilisation of a designated risk manager. The analysis showed that in order to improve risk mitigation within the construction industry, there is a requirement tor an industry based standard. This standard will improve the efficiency and effectiveness of the risk mitigation response technique to risk management.

Malmquist indices of total factor productivity changes in the Australian construction industry

Construction is an important industry and forms a vital part of national economics in the world. Factors affecting the productivity of the construction industry should be measured appropriately to reflect its development situation and economic performance. The Malmquist index method with a novel decomposition technique is employed to estimate the total factor productivity of the Australian construction industry during the period 1990-2007 and to analyse the factors affecting the technological change in the industry. Research results exemplified by two input variables and one output variable elaborate how construction technology, pure technical efficiency and scale economy take effect in the change of construction productivity. In addition, based on temporal and spatial comparisons, the analysis for construction productivities reveals their changes over time and across the country. Proposals and recommendations are expected to be beneficial for policy making and strategic decisions to improve the performance of the Australian construction industry.

Chinese construction industry performance after entry into the world trade organization

The Chinese construction industry has had significant activity in the international market in the last decade following the entry into the World Trade Organization (WTO). However the degree of activity and the sector performance is still relatively uncertain. A review of the literature in this field indicates that there is very little rigor in relation to adoption of quantitative measurement and performance indicators for internationalization, in particular for the measurement of the degree of internationalization specifically related to the international construction sector at both firm and country level. In addition the estimation of the influence and status of a country's construction activity in the international market has not been considered. There are useful indicators that we can borrow and consider from mainstream economics literature, such as, Dunning's Eclectic Paradigm (based on the ownership (0), location (L) and internalization (1) advantages of a firm) and Low et al.'s OLI+S Model (based on the Ownership, Location, Internalization and Specialty). Through an analysis of the attributes of the Chinese construction industry and a discussion on trends for the last decade, this paper proposes to develop a new model by adapting the Dunning model and acknowledging the significance of "Specialty" to measure the degree of internationalization both at the firm and country level. The International Level and Status Index was generated to measure the level and status of a country's construction industry in the international market by adopting the Depth Index (revenue composition), Height Index (top enterprises) and Width Index (fields involved). The key finding is that the degree of internationalization of Chinese construction industry and the status and influence of Chinese construction industry in the international market has not increased quickly. Surprisingly even though China had expectations of high growth after entry to WTO it has in fact declined. Contrarily, both of them declined in the early years after the accession to WTO.

Implementing a suitable jobs register in the construction industry : preliminary evidence

This pilot study investigated the efficacy of a job register index to support return to work (RTW) for injured workers in the construction industry. Participants included injured workers (n = 22), supervisors/managers (n = 23), treating practitioners (n = 5), occupational rehabilitation consultants (n = 5), union representatives/occupational health and safety representatives (n = 5), RTW coordinators (n = 2), steering committee members (n = 4) and the designated project officer (n = 1). A pre–post test intact group design was used to evaluate the perceived utility of the job register. A partial set of the sample including injured workers and supervisors/managers participated in the pretrial phase (n = 28) while the trial phase included more numerous stakeholder groups to assess the perceived utility of the register (n = 39). Participants completed surveys that incorporated a number of differing sections including injury description and circumstances, communication and collaboration with others, their overall opinion of the return to work process in general and suggestions for future improvements. Additional questions were designed for those participating in the trial with regards to the efficacy of the register. Data were analysed using analysis of variance procedures with pairwise comparisons of pre–post intervention test means. Alternative job options were seen to be offered more frequently. Communication and cooperation improved post implementation. Supervisors perceived the job register a useful innovation to facilitate RTW. The register represents a new resource to the construction industry with potential for wider application following further study.

Benchmarking the implementation of continuing professional development in the Victorian construction industry

In the state of Victoria, the state government has taken a leadership position on the potential benefit of introducing voluntary continuing professional development (CPD) for registered building practitioners (RBPs) in the construction industry. Benefits are believed to accrue to the Victorian community through a more highly skilled and managed SME construction sector, improved quality buildings with fewer defects and greater efficiencies gained by a reduction in industry internal and external operating costs. This research has identified appropriate industry and community benchmarks to enable a quantification of the costs and benefits that result from this policy. These benchmarks will enable the policymaking body of Victoria, the Building Commission (BC) to evaluate the effects of the implementation of its policy and contribute to informing the debate about the merits and possible drawbacks of such a policy in the construction industry in Victoria.

The proposed Victorian CPD policy will affect a whole industry sector. This pioneering policy approach is already being viewed as a touchstone for other jurisdictions in Australia and abroad. Consequently, this research project is considered by our industry partner to be pivotal in the leadership position that they are taking in Victoria. This investigation is being conducted by the research team under the auspices, guidance and with the cooperation of the Building Commission (BC) and the Building Practitioners Board (BPB) of Victoria. This policy research evaluation is necessary to assess the proposed implementation of CPD in the Victorian construction industry. The identification and creation of agreed and significant industry benchmarks are crucial to evaluating this policy initiative. These benchmarks will serve as independent yardsticks for assessing the impact of the new policy and are described and discussed in this paper.

Pathways to formally assessed work placement : employers' perspectives on collaborative education in the Australian construction industry

The QS and construction industry is uniquely impacted by project-based work environments. This creates special challenges for collaborative, work-integrated education of pre-professional students. This research is based on investigating the attitudes of employer’s towards the use of formally assessed internships. The study comprised two stages- firstly a series of pilot interviews were undertaken with employers to test a number known issues and secondly, the results from the interviews were used to refine a set of questions that were put to a large focus group of employers who were invited from across the property and construction sector in Australia. The results showed that many employer organisations expressed considerable goodwill towards collaborative education with universities. However, the challenges caused by project-based work environments restrict employers' ability to provide comprehensive learning opportunities. This research discusses some of the distinctive issues associated with work-integrated learning in the construction industry and proposes some potential opportunities for overcoming these restrictions.

Major quantitative techniques for risk analysis in the construction industry : a comparative analysis

Risk analysis is one of the critical functions of the risk management process. It relies on a detailed understanding of risks and their possible implications. Construction projects, because of their large and complex nature, are plagued by a variety of risks which must be considered and responded to in order to ensure project success. This study conducts an extensive comparative analysis of major quantitative risk analysis techniques in the construction industry. The techniques discussed and comparatively analyzed in this report include: Programme Evaluation and Review Technique (PERT), Judgmental Risk Analysis Process (JRAP), Estimating Using Risk Analysis (ERA), Monte Carlo Simulation technique, Computer Aided Simulation for Project Appraisal and Review (CASPAR), Failure Modes and Effects Analysis technique (FMEA) and Advanced Programmatic Risk Analysis and Management model (APRAM). The findings highlight the fact that each risk analysis technique addresses risks in any or all of the following areas – schedule risks, budget risks or technical risks. Through comparative analysis, it has been revealed that a majority of risk analysis techniques focus on schedule or budget risks. Very little has been documented in terms of technical risk analysis techniques. In an era where clients are demanding and expecting higher quality projects and finishes, project managers must endeavor to invest time and resources to ensure that the few existing technical risk analysis techniques are developed and further refined, and that new technical risk analysis techniques are developed to suit the current construction industries requirements.