Costs, benefits and risks of IT in construction

Construction organisations were found to be reluctant to invest in IT due to the lack of a technique that accurately assesses the costs, benefits and risks. More importantly the associated indirect costs that are often overlooked can constitute up to 80% of costs related to investing in IT.

Using national input-output data for embodied energy analysis of individual residential buildings

Embodied energy (EE) analysis has become an important area of energy research, in attempting to trace the direct and indirect energy requirements of products and services throughout their supply chain. Typically, input-output (I-O) models have been used to calculate EE because they are considered to be comprehensive in their analysis. However, a major deficiency of using I-O models is that they have inherent errors and therefore cannot be reliably applied to individual cases. Thus, there is a need for the ability to disaggregate an I-O model into its most important 'energy paths', for the purpose of integrating case-specific data. This paper presents a new hybrid method for conducting EE analyses for individual buildings, which retains the completeness of the I-O model. This new method is demonstrated by application to an Australian residential building. Only 52% of the energy paths derived from the I-O model were substituted using case-specific data. This indicates that previous system boundaries for EE studies of individual residential buildings are less than optimal. It is envisaged that the proposed method will provide construction professionals with more accurate and reliable data for conducting life cycle energy analysis of buildings. Furthermore, by analysing the unmodified energy paths, further data collection can be prioritized effectively.

Australia's residential building faults : a view from the state of Victoria

Presented is an examination of residential building faults in the Australian Slate of Victoria. The aim is to determine the interconnections between identified main house faults., with a view to establishing their cause· effect relationships. A total of 42753 residential houses in Victoria were examined for nine key faults fully documented in Archicentre's database. These faults are: rising damp. framing fault, illegal building, stump fault, timber rot, cracking, electrical fault, roof fault and water supply issue. Second to framing fault, roof fault was found to be closely associated with other house faults examined. Hence, this paper concludes that a properly framed and roofed house could limit most of these faults. As illegal building was observed to have only a little overall association with other house faults, this study has implications for the Australia Productivity Commission's on-going efforts to deregulate various aspects of the building and construction industry professions.

Modelling direct and indirect water requirements of construction

Water consumed directly by the construction industry is known to be of little importance. However, water consumed in the manufacture of goods and services required by construction may be significant in the context of a building's life cycle water requirements and the national water budget. This paper evaluates the significance of water embodied in the construction of individual buildings. To do this, an input-output-based hybrid embodied water analysis was undertaken on 17 Australian non-residential case studies. It was found that there is a considerable amount of water embodied in construction. The highest value was 20.1 kilolitres (kL)/m2 gross floor area (GFA), representing many times the enclosed volume of the building, and many years worth of operational water. The water required by the main construction process is minimal. However, the water embodied in building materials is considerable. These findings suggest that the selection of elements and materials has a great impact on a building's embodied water. This research allows the construction industry to evaluate design and construction in broad environmental terms to select options that might be cost neutral or possibly cost positive while retaining their environmental integrity. The research suggests policies focused on operational water consumption alone are inadequate.

Procurement of construction facilities: a case study of design management within a design and construct organisation

Presents a case study of design management within an Australian design-construct organization on a large residential apartment project, with the purpose of identifying and analysing issues associated with the organization, responsibilities and stages of development in a typical design-construct project. Discusses the nature of introspection in the Australian construction industry, the shift in procurement methods, the design and build approach, whole life issues, the need for a design manager, and the role of the facilities manager. Profiles the case study organization and its contracts and procurement methods, before focusing on weaknesses in the company, the role of the project design development manager in leading the design team, managing the design consultants, and interacting and advising the developer in relation to design decisions. Suggests from the exercise that: the project manager should remain the overall project leader, manager and interface between design, cost, programme, buildability, construction and user requirements; the design manager should be responsible for issuing all documentation; and the design cost manager should be responsible for verifying that the design developed accords with project budgets, project brief and quality requirements in conjunction with the design manager.

Can you seek security for costs in international arbitration in Australia?

International arbitrations can be conducted under either federal or State legislation in Australia. In both cases complexities arise in the resolution of procedural questions, such as whether security for costs can be granted. There is scant Australian case law on such issues. This article considers whether an arbitral tribunal or a court has the power [*2] to order security for costs in an international arbitration in Australia. After analysing Australia's international arbitration laws and discussing New Zealand and House of Lords' authority, it is argued that unless the parties have specifically empowered the arbitral tribunal to order security for costs, only the relevant court has that power, and even that is uncertain.

A new paradigm for sustainable residential buildings

This paper explores a new paradigm in housing, where dwellings will be pre-fabricated, modular, energy efficient, transportable and use renewable and/or recyclable resources. The paper reviews previous attempts to produce housing, which meets some of the criteria for this new paradigm. Their advantages and disadvantages are discussed. An approach towards a new type of modular prefabricated unit is proposed. A preliminary energy analysis, comparing a present relocatable classroom construction with one upgraded, is provided as an example towards low energy building operation. Finally, conclusions are drawn about the requirements of future housing if we are to progress towards sustainability.

Construction supply chain modeling : a research review and interdisciplinary research agenda

Supply chain management has emerged as a popular and useful concept in the construction industry and research community since the mid 1990s. Research in construction supply chain management draws from a broad range of disciplines, notably: (1) Industrial organization economics to better understand market structure and forces and their effect on firm and supply chain behavior and (2) Analytic modeling of supply chains to improve supply chain performance along metrics such as speed, cost, reliability, quality, etc. Both industrial organization and analytic modeling provide useful but ultimately incomplete perspectives and prescriptions for construction supply chain management. As such, this paper proposes development of an interdisciplinary research agenda that draws from both fields. Towards that agenda, a review of research is presented to introduce the main ideas, relevant literature, and theory and methods in each of the two areas. From these independent reviews, applications that could benefit from a combined perspective are identified and used as a basis for development of an interdisciplinary research agenda.

Construction supply chain management : a research review and interdisciplinary research agenda

Supply chain management has emerged as a popular and useful concept in the construction industry and research community since the mid 1990s. Research in construction supply chain management draws from a broad range of disciplines, notably: (1) industrial organization economics to better understand market structure and forces and their effect on firm and supply chain behavior and (2) Analytic modeling of supply chains to improve supply chain performance along metrics such as speed, cost, reliability, quality, etc. Both industrial organization and analytic modeling provide useful but ultimately incomplete perspectives and prescriptions for construction supply chain management. As such, this paper proposes development of an interdisciplinary research agenda that draws from both fields. Towards that agenda, a review of research is presented to introduce the main ideas, relevant literature, and theory and methods in each of the two areas. From these independent reviews, applications that could benefit from a combined perspective are identified and used as a basis for development of an interdisciplinary research agenda.

Joint European masters awards in construction management and construction economics : a positive step for surveying education?

The Royal Institution of Chartered Surveyors (RICS) 5th European Conference in November 2004 focussed on enhancing collaboration at master's level in real estate education across Europe. In a context of increased global economic activity and increasing ties within the EU, there are benefits to business and to students in offering this type of educational provision. But is this paradigm true for construction economics (CE) and construction management (CM)? This paper examined the potential for collaboration and joint European awards in CM and CE. There is a political will for collaboration in HE based on economic drivers for the growth of the EU and changes are being implemented to enhance transparency and mobility for students. Professional bodies are expanding their European presence. Globalisation has resulted in greater opportunities for international real estate, and construction and there is growth in these sectors for practitioners. The difficulties with joint European collaboration are short course duration and the need to cover extensive subject matter. Other barriers are university structures, quality assurance procedures, costs and finances issues as well as IT, student services and support issues. The survey revealed that there are no RICS accredited CM / CE courses outside of the UK which inhibits collaboration. The sample was split in perceived demand for collaboration and the European focus within the courses is limited, as are field trips outside the UK. Student exchange on courses is rare. Generally there is a lag between the political will to greater student mobility and collaboration and the market, which is showing growth in multinational organisations and demand for pan European construction services and a professional body keen to deliver and support this growth. Within academia the barriers and current economic climate in HE preclude the widespread adoption of greater collaboration and development of joint awards, however this position may change.

Skills and qualities and the effective project manager in the UK construction industry

The professional project manager is a sought after commodity (McManus, 1995:12). Many companies face increasing demands to complete projects faster, at lower costs and to higher specifications and as Lock (1996;50) comments; “This work, far from requiring specialisation, demands a sufficient general understanding of the work carried out by those participants for the project manager to be able to discuss the work sensibly”. Though for some the term project manager can be clearly identified, others believe the terms project manager and project management, as used in the construction industry, mean all things to all men and lead to confusion (The Chartered Institute of Building, 1982;12). The lack of clarity surrounding the role of project manager made this area worthy of investigation.

This research sought a deeper understanding of the project management role and an identification of the skills and professionals associated with it. The desk top study revealed definitions of the role and perceptions of the skills involved. The literature showed that authors believed in the need for a balance between knowledge, experience and training and the types of professions involved. The research methodology comprised a qualitative approach, with a questionnaire sent out to a non-random sample of practices specialising in project management. The data analysis adopted uni and bi-variant methods, using SPSS. The research found that the role of the project manager is very broad. Furthermore it is adopted by many construction professions as the background of the project manager is largely perceived as irrelevant to the role. A definition is proposed and relevant skills are identified, finally the importance of experience and training is highlighted.

Project management practice in transition of old residential region

With the rapid urbanisation worldwide, the transitions of old residential regions inside or close to the urban districts have been challenging both governments and professionals. The sustainable maintenance, innovation and construction of these regions incorporate the history, culture, environment and policy factors into the economic objectives. Over the long and complex process of a transition project, the dedicated project management crew are frequently confronted with diversified novel issues and obliged to contribute appropriate solutions urgently. In this paper, the authors first analyse the state of the art of transition projects of old residential regions based on their practices in real projects. Furthermore, the authors explore the sustainable alternatives of transition projects from the reservation and development perspectives of culture, environment, society and infrastructure. Finally, the authors develop a multi-dimensional implementary framework for guiding the practices of management of transition projects.

Towards the development of a construction supply chain transaction cost economic model for strategic infrastructure procurement evaluation

Australia has adopted public-private partnership (PPP) as a major strategy for procuring infrastructure for decades. However, even though considered to be a mature and sophisticated market, several major
failures have occurred resulting in increasing financial burdens on taxpayers. Failures have typically been traced back to economic evaluation and, in particular, value-for-money across the supply chain
in the original proposal. However, the literature review identified that there was no economic model that evaluated holistically the transaction costs of PPPs across the supply chain. In this paper, theories of transaction cost economics and construction supply chain economics are critiqued and analysed in order to develop a strategic infrastructure procurement evaluation model. The model will offer decision makers with an insight into project life cycle economic outcomes needed to successfully deliver PPPs.

Convergence among the sub-markets in Australian regional building and construction sector

Studies on market convergence are well considered in the literature. However, the majority of the previous research focused on housing markets and few studies have concentrated on construction markets. Owing to a simultaneously dramatic increase in the construction prices of the sub-markets in the building construction sector in Australia, this paper aims to identify the convergence among these markets, involving house construction market, other-residential building construction market, and non-residential building construction market. To achieve it the Granger causality test and generalized response function depending on the vector error correction model with the quarterly data of Australia’s eight states from 1998 to 2010 will be applied. Based upon the econometric tests, the price diffusion patterns among these construction markets have been identified. Research on the convergences of construction markets not only helps construction firms perform well in business operations and arbitrage activities, but also provides policy makers with useful information for enacting effective construction policies for national perspectives and approaches to infrastructure planning.

Analysis of the cost performance of structural building frames in Australia

The significance of this research is that it is the first comprehensive analysis of cost performance across Australia. It is well known that measuring cost performance is not an easy task; comparisons of building projects on a `like-for-like’ basis are uncommon, and rarely occur in the real world. However, this paper analyses 120 different structural frame models that represent various; structural designs, construction methods, grid spans, and locations.

The research produced price models that were representative of structural frames used in medium-rise non-residential buildings. It is based on pricing a number of standard building frame designs in five Australian cities. The results represent the cost of producing the same building in different locations, using similar building construction techniques. By utilizing a standard model, project variables like building quality, ground conditions and access were eradicated, thereby facilitating an unbiased comparison of cost performance. I addition, the results are an indicator of building productivity based on costs per square metre of various construction types.

This research provides the Australian industry with robust data about the relative cost performance of various structural building frames. In addition, this research has wider implications because the models may also become useful data for the measuring relative cost performance in other countries.