Econometric techniques for estimating construction demand in Australia

This study aims to develop reliable demand estimation models, at both national and regional levels, for the Australia’s construction market. The developed models would benefit the industry by serving as a reliable aid to policy in the areas of tendering, pricing, resource allocating, labour and workload 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.

Prison architecture and privatisation : project delivery in the Australian context

The study is a comparison of the relationship between the architect and associated parties in the planning, design and construction of private and public prisons in Australia between 1985-2000.

Innovation in construction : experiences from a hypocaust system in Australia

Introducing new technologies poses a particular challenge to the players involved in a project. For a successful low energy building, a new design process is required and players must assume new and additional responsibilities. Hypocaust systems, where conditioned or non-conditioned air is passed through ducts within the concrete floor or ceiling of a building prior to its delivery to the rooms, are starting to appear in new buildings in Australia. This paper describes the lessons learned from the early experiences with a hypocaust system, installed in a new building in Melbourne. It concludes that a more cooperative process among all those involved in introducing and using a new 'technology' is essential if the problems described are to be avoided or at least minimized.

A comparative study of construction industry size and structure between the UK and Australia and the significance of industry fragmentation

While comparing both the size and structure between the UK and Australian construction industries, this study reveals that the UK construction industry is about two and a half times larger than the Australian construction industry, and both industries are dominated by the proportion of small firms. The issue of fragmentation is characteristic of the construction industries in these two countries, and beyond. This study then develops a self recruiting-subletting cost indifference point model to explain why fragmentation occurs. Although the high proportion of small firms in the construction industry has been criticised as it prevents the exploitation of economies of scale, the self recruiting-subletting cost indifference point model theoretically proposes that subletting is usually profitable for construction firms. Thus the size distribution of the construction industry has a propensity to skew towards small firms.

A comparative study on economic factors of construction industries in Australia and China

The construction sector produces the facilities needed for a large majority of the production of goods and services, in which a sizeable proportion of Gross Domestic Product is generated. Recent trends in the globalisation of construction markets indicate that many countries consider construction industry competitiveness as crucial, and are working to increase construction productivity, in particular where the construction industries play an important role in their economic development. This paper first points out the research importance in international construction. Based on economic analyses of construction industries, a study is then carried out to focus on the economic sizes and benefits of the Chinese construction industry and to compare them with the Australian construction industry. Results derived from such an international construction comparison will assist in the Australian construction communities understanding the construction markets and industries in China and will benefit in international construction participation and cooperation.

The relevance of professional institutions to students and early career practitioners in the property and construction industries within Australia

The role of professional institutions and the transition from student membership to full professional membership among real estate and construction students in Australia is examined. Students’ perceptions of professional qualifications and institution membership is explored to show that graduates seek networking and career advancement opportunities over professional training and development opportunities. The expectation of many young practitioners is that they will work outside Australia during their career and this has significant implications for the future policy development of professional bodies. The paper provides a valuable insight into the aspirations of young professionals and goes some way to identifying the reasons for the low level of transition from student membership to full membership of the national and international professional bodies.

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.

Investigating relationships of construction prices in Australia using cointegration analysis

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 examines the long run equilibrium relationships within the regional markets, and the error correction models explore the short run disequilibrium relationships. Finds of this study reveal that the economic system in which the construction industry participants operate is characterized by a highly competitive, integrated marketplace, Especially in Melbourne and Sydney. But exclude Northern Territory and Queensland. Furthermore, the results of long term relationships estimation suggest that there are 15 pairs of regional construction prices have long term equilibrium relationships. Additionally, the causalities and diffusion among the construction price indices in six states and two territories of Australia are estimated in this study. These outcomes suggest that causal links between regions mainly exist among adjoining states.

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.

The activities and impacts of part-time employment on full time undergraduate students in property and construction courses in Australia

This paper examines the extent of part-time employment of undergraduate students enrolled in property and construction related courses in five universities across Australia. Forty five percent of the students responded to a questionnaire on their part-time work. Past research reveals that there is need for a more accurate understanding as to why students seek part-time work to the extent that they do and that working long hours has a negative effect on the study patterns of undergraduate students. Increased employer work demands results in less time available for study and an inability to attend lectures because of work. There is growing concern that students are increasingly disinterested in connecting with the broader and total university experience and are instead, seeking to adopt a minimalist approach to education.

Analysis of current research for Property and construction students’ results reveals that students are working on average 18 hours per week during semester time. The students therefore appear to be working beyond what is considered beneficial to their studies, although their contextual understanding and work ethic improves.

The paper concludes with some approaches that could re- engage students into the learning process. It may be helpful to develop a partnership between the University and the industry thereby providing work experience that complements the program of study. Otherwise students may not get the range of experience they need and may struggle to find the linkages between theory and practice.

Measuring the occupational health and safety performance of construction companies in Australia

Many facility managers are now required to deal directly with small firms engaged in the maintenance, alteration and cleaning of physical infrastructure. Increasingly the performance of small firms reflects on the manager of the facility, and so an understanding of their operation is required. It is mandatory for all firms to provide a safe working environment for their workers and subcontractors. Consequently, occupational health and safety (OHS) is a major issue for companies mainly due to the fear of prosecution. The introduction of Zero Tolerance by the Victorian government WorkCover Authority in 1999 provided even higher OHS safety standards for the construction industry. This has placed an increased burden on construction and maintenance companies especially small firms that are not in a position of financial strength. The size of the company has been found to be a major contributing factor to the OHS performance of construction contractors. This research is based on a benchmarking study of 44 construction companies in Victoria, Australia. The results show that the major factors influencing safety performance were; company size, and management and employee commitment to OHS.

Pathways to industry : work practices of undergraduate students in construction programs in Australia

This research reports the impact of work on undergraduate students enrolled in construction programs. Students responded to a questionnaire on the nature of their paid work while enrolled in full-time study in six universities across Australia. The results indicate that students are working on average 19 hours per week during semester time. The results indicate that students in the early years tend to undertake casual work that is not related to their degree. However, this pattern changes in the later years of the program, where students switch to roles in construction that does relate to their coursework. The students start working on average 16 hours in the first year of their degree, and the number rises to 24 hours in their final year. Past research suggests that students may be working to an extent beyond what is considered beneficial to their studies. Past research has shown that working long hours has a negative effect on the study patterns of undergraduate students. The implications of the amount of time working and the type of work are discussed. The paper concludes by suggesting that universities need a greater awareness of the impact of paid employment on student engagement.