An economic analysis of construction industries producer prices in Australia

Research on construction prices is significant for contractors and traders. A comprehensive understanding of construction prices may influence crucial decisions in business operation and arbitrage activities. This study focuses on the cointegration relationships of regional construction prices in Australia by using a range of econometric techniques including the stationarity test, the Engle-Granger cointegration approach and error correction model. The cointegration relationships amongst the regional construction prices are detected in this study. The application of the Engle-Granger cointegration approach examines the long run equilibrium relationships within the regional markets, and the error correction models explore the short run disequilibrium relationships. Results of this study suggest that the economic system in which construction industry participants operate is characterised by a highly competitive integrated marketplace. Furthermore, the causalities and diffusion patterns among the construction price indices in six states and two territories of Australia are drawn by the cointegration analysis. These outcomes reveal a pattern of diffusion paths and network linkages among the six states and two territories, and then expose the regional price linkages.

Construction cost performance of structural frames in Australia

This research is concerned with the comparative cost of building structural frames in Australia. The research has been undertaken to evaluate the cost performance of a number of technologies that are typically used in medium-rise commercial buildings of ten storeys. The research methodology 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 using different building construction designs. By utilising a standard model, project variables like building quality, ground conditions and access were eradicated, thereby facilitating an unbiased comparison of cost performance. The second stage of the research invoiced a focus group of industry experts who were asked to validate the results of the cost study. In addition, participants of the focus group were asked to comment on the preferred construction practice for each of the typical building designs. Results suggest that post-tensioned in situ concrete frames have the best cost performance for most buildings. However, other designs can have good cost performance under some circumstances. Findings suggest that the Australian construction industry has long cultural preference for the use of in situ concrete in structural frames.

The effects of the late 2000s global financial crisis on Australia's construction demand

An accurate measurement of the impacts of external shocks on construction demand will enable construction industry policymakers and developers to make allowances for future occurrences and advance the construction industry in a sustainable manner. This paper aims to measurethe dynamic effects of the late 2000s global financial crisis on the level of demand in the Australian construction industry. The vector error correction (VEC) model with intervention indicators is employed to estimate the external impact from the crisis on a macro-level construction economic indicator, namely construction demand. The methodology comprises six main stages to produce appropriate VEC models that describe the characteristics of the underlying process. Research findings suggestthat overall residential and non-residential construction demand were affected significantly by the recent crisis and seasonality. Non-residentialconstruction demand was disrupted more than residential construction demand at the crisis onset. The residential constructionindustry is more reactive and is able to recover faster following the crisis in comparison with the non-residential industry. The VEC model with intervention indicators developed in this study can be used as an experiment for an advanced econometric method. This can be used to analyse the effects of special eventsand factors not only on construction but also on other industries.

Overcoming barriers to the reuse of construction waste material in Australia: a review of the literature

Although much has been written on how to improve the management of construction waste and increase the use of recycled materials, little progress has been made to address the reuse of construction waste. Yet there is a consensus in the literature that waste reuse practices have a decisive role to play in improving reduction of waste, and that institutional barriers are the most problematic obstacles to implementing identified reuse strategies. This paper examines the literature from the last 10 years on the issues facing different stakeholders around reuse of construction waste in Australia, and the causes and effects of the institutional barriers encountered. Key texts from before this period are also referenced. The findings reveal that institutional impediments are related to problems outside of the construction industry, such as social, economic and political barriers to change. A number of constraints are identified: lack of interest and demand from clients; attitudes towards reuse practices; and training all of which act as disincentives to a proactive and sustainable application of construction waste reuse strategies. Above all, it is argued that legislation should be better implemented to ensure that all states in Australia are required to implement strategies to reuse waste construction materials.

Environmental Assessment of Rammed Earth Construction Systems

Present concerns for sustainable development have led to a revival of traditional building practices using natural or recycled resources. There is a perception that buildings constructed from such materials are environmentally benign. This perception is questionable, as often no evaluation is undertaken to assess the associated environmental impacts. Rammed earth is one such construction technology that has seen renewed interest in recent years. The energy required to manufacture materials (i.e. embodied energy) is a significant component of the life cycle energy associated with buildings. This paper assesses the embodied energy of rammed earth construction relative to brick veneer and cavity brick construction. Rammed earth was found to have significantly less embodied energy than cavity brick construction (to which it is closer in thermal performance), but was approximately equivalent to brick veneer construction. Topics of further research identified include thermal performance and strategies for reducing the embodied energy of cement used for earth stabilisation.

An analysis of factors influencing waste minimisation and use of recycled materials for the construction of residential buildings

Residential building construction activities, whether it is new build, repair or maintenance, consumes a large amount of natural resources. This has a negative impact on the environment in the form depleting natural resources, increasing waste production and pollution. Previous research has identified the benefits of preventing or reducing material waste, mainly in terms of the limited available space for waste disposal, and escalating costs associated with landfills, waste management and disposal and their impact on a  building company's profitability. There has however been little development internationally of innovative waste management strategies aimed at reducing the resource requirement of the construction process. The authors contend that embodied energy is a useful indicator of resource value. Using data provided by a regional high-volume residential builder in the State of Victoria, Australia, this paper identifies the various types of waste that are generated from the construction of a typical standard house. It was found that in this particular case, wasted amounts of materials were less than those found previously by others for cases in capital cities (5-10 per cent), suggesting that waste minimisation strategies are successfully being implemented. Cost and embodied energy savings from using materials with recycled content are potentially more beneficial in terms of embodied energy and resource depletion than waste minimisation strategies.

A benchmark study on housing defects in Victoria, Australia

The construction industry consists of many small businesses employing less than five people. A challenge to the construction industry is to ensure that the many small firms and sub-contractors keep producing quality housing to meet the needs of their customers and clients. In attempts to continually improve the quality of housing various policies and mechanisms have been adopted. These have included industry sponsored quality programs and industry administered builder registration. However, these attempts have failed because of consumer mistrust of industry-sponsored programs. In addition, these mechanisms have been introduced in isolation and not as a part of an integrated industry initiative that includes education and training from the trade to tertiary level construction management courses. This work contributes to knowledge through a detailed on-going study of housing quality and defects. This research identifies the common forms of defects, which occur in housing and their incidences. The overall aim of this paper is to report the identification of defects in housing and the establishment of benchmarks (or a baseline) for the incidence defects in various functional elements within a house. It also suggests the areas where defects are likely to occur. From the knowledge gained from the study, industry and governments may make informed decisions of where resources may be directed to the areas where it will be most beneficial both to the house builder and the end user (customer). For this to occur the findings of this research will be disseminated into the housing industry and eventually integrated into tertiary courses in building and construction
management.

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.

The degree of job satisfaction experienced by site-based construction professionals

The construction industry worldwide is having problems attracting and retaining skilled workers. This study analyses a series of factors affecting job satisfaction of site-based construction professionals employed in medium to large scale metropolitan construction firms in Melbourne, Australia. The industry survey carried out identified salary as the strongest determinant of job satisfaction. However, many respondents reported being dissatisfied with pay levels when compared to other industries and the number of work hours expected. The greatest causes of dissatisfaction were related to difficulties in maintaining a work-life balance. The indicator "Variety, interest and challenge" was the most frequently cited positive aspect of a career in construction. Given the shortage of skilled construction workers in Australia, it is important for companies to maximise the retention of site-based construction professionals and ensure that key job satisfaction indicators are met.

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.

Building a symbiotic relationship between academia and industry: expectations and observations of construction management graduates

Construction management graduates are employed in job functions such as building and civil engineering contracting, construction and project management consulting, client organisations (public and private) and developer organisations. Considering the diversity of employment opportunities for construction management graduates, they increasingly need to have a portfolio of skills to work effectively and efficiently with other professions in the industry. In exploring this, the objective of the research presented in this paper is to determine if construction management graduates are meeting the expectations of their employers. In considering the competitive forces impacting the construction industry, the authors of this paper sought to establish whether construction managers are able to identify those key skills needed for the future success of the industry. In turn, this information is considered critical for the successful formulation of curricula. Therefore, to establish whether construction management graduates are meeting the expectations of contractors, a survey was distributed to managers to establish their expectations and observations of recent graduates. The survey results indicate that managers are generally satisfied with the skill level of graduate students. The survey also highlighted several important skills that were considered to be lacking in graduates. cknowledging that there is always a need to improve the skill level of graduates, the authors propose a number of recommendations that are considered to improve the content construction management curricula.

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.

Benchmarking occupational health and safety performance of Australian construction companies.

It is mandatory for Australian construction companies to provide a safe working environment for their workers and sub-contractors. Consequently, occupational health and safety (OHS) is a major issue for construction firms mainly due to the fear of prosecution. The recent introduction of Zero Tolerance by the Victorian government WorkCover Authority provided even higher OHS safety standards for the construction industry. This has placed a increased burden on construction companies especially small firms that are not in a position of financial strength.

The size of the companies has been found to be a major contributing factor to the OHS performance of construction contractors. This research is based on benchmarking study of 44 construction companies in Victoria, Australia. The results show that the major factors influencing safety performance were; company size, and management commitment to OHS.