Labour productivity in Iranian construction projects perceptions of chief executive officers

Purpose – The purpose of this paper is twofold. First, it aims to highlight the main factors and items affecting the productivity of construction projects, based on the perceptions of CEOs in construction companies in Iran. Second, the study compares the elicited CEOs’ perceptions against the findings of studies based on the views of such as project managers, middle managers and employees in other levels. Design/methodology/approach – The study drew upon literature on construction work to develop a conceptual model. Further, a total of 60 CEOs from road construction companies were surveyed using a five-point Likert scale questionnaire to generate the data. The collated data were categorised and ranked according to the CEOs perceived level of importance using the relative importance index. Findings – The findings highlight the main factors and items affecting labour productivity in construction projects in Iran as perceived by CEOs, which are mainly of human resources management nature and could be attributed to motivation and managerial policy aspects. The study also recognises that factors associated with the working environment particularly safety and health are perceived as insignificant by Iranian CEOs which could be a concern for the Iranian construction industry. The discussions shed some light on the discrepancies between the perceptions of CEOs and previous studies in regards to major determinants of productivity in the construction context. Originality/value – This study is the first study aiming at discussing the perceptions of CEOs of construction companies active in construction projects in Iran. As such, the study highlights the standpoint of the main decision makers in construction companies in regards to labour productivity in the construction sector. Thus, the key contribution of the present study is providing insight into the perceptions of CEOs, who play the most vital role in strategic development of construction companies whereas previous studies have mostly focused on project or middle managers having a lower influence in determining the strategic plans of companies.

Carbon productivity: a case study in the Australian construction industry

Climate change is a severe threat to human development. Environmental protection and economic growth are two significant dimensions of promoting sustainable global development. In this research, a two-step procedure has been applied to investigate carbon productivity, which is deemed an appropriate indicator to measure sustainable development in conjunction with carbon reduction and production advancement. A decomposition method with the Log Mean Divisia Index has been applied to explore the factors influencing carbon productivity change, including technological innovation and regional adjustment. The carbon productivity of the Australian construction industry from 1990 to 2012 was then investigated. Research results indicate that carbon productivity in Australian construction had increased significantly and could be further improved. Technological innovation has played an important role in promoting carbon productivity, while regional adjustment has remained roughly steady. Based on correlation analyses, scale of the construction market and stock of machinery and equipment had shown weak correlations with carbon productivity changes, and it was clear that improvement in carbon productivity could benefit capital productivity and investment return. The research has systematically defined carbon productivity and for the first time measured it for the construction industry. The results are expected to assist construction industries worldwide to investigate productivity performance and to identify the influencing factors for improving development sustainability.

Construction labor productivity convergence: a conditional frontier approach

Purpose-Understanding and simulating construction activities is a vital issue from a macro-perspective, since construction is an important contributor in economic development. Although the construction labor productivity frontier has attracted much research effort, the temporal and regional characteristics have not yet been explored. The purpose of this paper is to investigate the long-run equilibrium and dynamics within construction development under a conditional frontier context. Design/methodology/approach-Analogous to the simplified production function, this research adopts the conditional frontier theory to investigate the convergence of construction labor productivity across regions and over time. Error correction models are implemented to identify the long-run equilibrium and dynamics of construction labor productivity against three types of convergence hypotheses, while a panel regression method is used to capture the regional heterogeneity. The developed models are applied to investigate and simulate the construction labor productivity in the Australian states and territories. Findings-The results suggest that construction labor productivity in Australia should converge to stable frontiers in a long-run perspective. The dynamics of the productivity are mainly caused by the technology utilization efficiency levels of the local construction industry, while the influences of changes in technology level and capital depending appear limited. Five regional clusters of the Australian construction labor productivity are suggested by the simulation results, including New South Wales; Australian Capital Territory; Northern Territory, Queensland, and Western Australia; South Australia; and Tasmania and Victoria. Originality/value-Three types of frontier of construction labor productivity is proposed. An econometric approach is developed to identify the convergence frontier of construction labor productivity across regions over time. The specified model can provides accurate predictions of the construction labor productivity.

A survey of the factors affecting the productivity of construction projects in Iran

The intense competition between the Iranian construction companies has led them to take all appropriate measures to decrease the costs as much as possible. Hence, due to the pivotal role of human resources in construction projects cost, a major part of Iranian construction companies seek their profitability and survival in maximizing the productivity of their operatives. Because of the widespread belief among contractors about the low productivity of daily workers and operatives with basic salary, they commit a major part of their projects activities to sub-contractors. Deployment of sub-contractors by construction firms has become largely conventional in country's construction projects. The aims of this paper is defined as determining the factors and grounds affecting sub-contractors productivity and evaluate their overall negative side effects on project productivity via a structured questionnaire. A total of 31 factors selected and were divided into 7 broad categories. The perceptions of companies managers were asked about the level of effect brought about by the mentioned factors and groups upon productivity on a time based criterion. The analysis indicated that the most important grounds affecting sub-contractors productivity in descending order include: Materials/Tools, Construction technology and method, Planning, Supervision system, Reworks, Weather, and Jobsite condition. Project managers should focus on the identified major grounds and relevant factors in order to improve productivity as long as they commit construction activities to sub-contractors. © 2012 Copyright Vilnius Gediminas Technical University (VGTU) Press Technika.

Knowledge transfer : a model framework for construction knowledge integration

Managing information and knowledge in the construction industry is an important focus for research. The goal is to expedite better integration of construction knowledge amongst the stakeholders. Better use of this knowledge could allow the building industry to achieve quality outputs making best use of resources – the linked goals of time, cost and quality. Information networks and knowledge transfer are central to this and are recognized as integral to an industry strategy to improve productivity. However, poor delivery of information to those at the construction site and lack of effective methods of transferring knowledge between parties involved in construction become major challenges. Based on a critical review of literature and an interview survey, this paper identifies the information networks adopted in the Malaysian construction industry and models these using four knowledge transfer components classified as ‘control’, ‘innovation’, ‘best practice’ and ‘audit’ element. Knowledge integration practices - attitude, communication, skills, commitment and monitoring; and factors related to information barriers including accessibility, service delivery, information updates and publication, were identified as critical features for the success of knowledge integration in the Malaysian construction industry. A framework for knowledge transfer is proposed to promote better practices in the Malaysian construction industry.

Study of the road construction industry in Sri Lanka: emphasis on improving performance of the industry

Outcome of the research is to identify significant factors influencing the productivity and performance of the road construction industry in Sri Lanka and to compare the identified factors with the Australian construction industry. Also to recommend strategies to improve productivity and performance of the Sri Lankan Industry.

The advantages of the construction sector of China and India: a comparison

With the spectacular rise of the Chinese and Indian economies the accompanying growth in these two countries' construction sectors justifies more understanding. There is, however, a lot of unknowns about the two countries' construction sectors from a comparative perspective. This study attempted to identify and compare the comparative/competitive advantages of the two fast-growing economies in construction in pursuit of policy and management implications, which can benefit not only the two countries but also other developing countries. In this regard, a comparative advantage framework and Porter's Diamond Framework were applied to analyze the relative advantages of the Chinese and Indian construction sectors. The comparative analyses showed that China appears better endowed in labor with high productivity. Government intervention was identified as benefiting Chinese firms with support for the development of human resources. China also benefits from superior access to a wide range of inputs, including equipment, construction materials, and technology. The existence of large corporate champions provides scale of economy and contributes to the advantage of the construction sector of China. In contrast, India benefits from the increased competitive rivalry thanks to its more hands-off government policies that focus primarily on providing a good business environment with a favorable tax system, market entry policies, laws and regulations, and code/standard systems. The differences identified provide policy implications to the decision makers of the two countries in further developing their construction sectors. © 2014 American Society of Civil Engineers.

Construction industry performance measurement with carbon reduction

The research developed non-parametric approaches for measuring construction industry performance in sustainable development. The research results support the improvement of value added and the reduction of carbon emissions, which have positive environmental and economic implications in the Australian construction industry.

Implementing the international benchmarking labour productivity theoretical model

Purpose – Building upon the results of a critical review of previous studies, the purpose of this paper is to present a framework to enhance the reliability of the theoretical model for international benchmarking of labour productivity (TMIBLP) method for construction project activities. The next part of the paper presents the results of implementing the proposed framework for construction activities in the Iranian construction industry. Design/methodology/approach – This paper draws upon a critical review of the literature to highlight the drawbacks of the previous studies concerning implementing TMIBLP within the construction industry. Identifying these shortcomings, the authors propose a framework for construction projects, which presents the procedure for deploying TMIBLP for construction activities in a reliable manner. The final section of the paper demonstrates the empirical implementation of the proposed framework within the Iranian construction industry. Findings – The primary contributions of the paper include: identifying the drawbacks of previous studies within the construction context, the framework that would lead construction managers towards more reliable implementation of benchmarking for construction projects, and determining the baseline of erecting steel structures in a developing country. Practical implications – A practical implementation of the TMIBLP method was presented to address the lack of research in Iran and to show the feasibility of using the framework developed. The authors investigated the daily labour productivity for the activity of structural steel erection for six projects in Tehran in order to determine the values of the baseline productivity for each project. Accordingly, the disruption index, performance ratio and project management index as the project benchmarks were calculated for all six projects. Originality/value – Underlining the necessity of implementing methods such as TMIBLP, this study outlines the outcomes of the first study on the benchmarking of construction activities deploying the proposed framework and using the data on erecting steel structures from six construction projects in Iran. The discussions provide guidelines for construction project managers regarding benchmarking labour productivity. The paper concludes with suggestions for future research opportunities.