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.

Joint venture behaviour in construction industry : an Australia case study

Joint ventures can take many forms and can be formed for different reasons, from sharing resources to creating future business opportunities. At the same time, there is increasing interest and discussion of alternative procurement methods, moving away from traditional procurement systems to relational approaches. Business systems and strategies need to be redefined and move from a short-term project to project culture to a more strategic, long-term perspective. Joint ventures of construction organisations, global and local, have become increasingly popular to deliver large-scale infrastructure construction projects. However, successful strategic collaborations require project organisations to formulate a fit between contractual and operational arrangements for each situation. This study reviews the movement from traditional procurement methods towards relational contracting approaches in Queensland, Australia. The study examines the organisational factors that facilitates sustainable relationship between project organisations and hence, lead to long-term business success. This paper reports on initial findings captured from a survey undertaken with construction contracting organisations in Australia, focusing on the supply chain relationships. Contractors’ perceptions of the relationship management process and the engagement of the supply chain are also presented.

Australian construction industry KPIs

The Australian Construction Industry Forum (which is a peak industry association) and the Australian Procurement and Construction Council (which is a peak government organisation) have jointly agreed on a set of KPIs for the Australian Construction Industry. The goal of such a process is to work collaboratively in order to lift industry performance overall, and thereby bring about economic and social benefits to the industry and broader community. This paper seeks to underpin the process of KPI measurement by providing: an overview of international approaches to KPI measurement, summary of difficulties identified in performance measurement together with possible responses to these problems, and finally a discussion on the various methods for reporting KPIs. A number of findings throughout the paper, based on the review, made in order to advance the goal of performance measurement in the construction industry in Australia. Such findings would be relevant to other countries considering a KPI measurement process as well.

The role of education and awareness in workplace alcohol and drug use in the Australian construction industry : proposed program of research and preliminary results

The main aim of this paper is to outline a proposed program of research which will attempt to quantify the extent of the problem of alcohol and other drugs in the Australian construction industry, and furthermore, develop an appropriate industry-wide policy and cultural change management program and implementation plan to address the problem. This paper will also present preliminary results from the study. The study will use qualitative and quantitative methods (in the form of interviews and surveys, respectively) to evaluate the extent of the problem of alcohol and other drug use in this industry, to ascertain the feasibility of an industry-wide policy and cultural change management program, and to develop an appropriate implementation plan. The study will be undertaken in several construction organisations, at selected sites in South Australia, Victoria and Northern Territory. It is anticipated that approximately 500 employees from the participating organisations across Australia will take part in the study. The World Health Organisation’s Alcohol Use Disorders Identification Test (AUDIT) will be used to measure the extent of alcohol use in the industry. Illicit drug use, ‘‘readiness to change’’, impediments to reducing impairment, feasibility of proposed interventions, and employee attitudes and knowledge regarding workplace AOD impairment, will also be measured through a combination of interviews and surveys. Among the preliminary findings, for 51% (n=127) of respondents, score on the AUDIT indicated alcohol use at hazardous levels. Of the respondents who were using alcohol at hazardous levels, 76% reported (n97) that they do not have a problem with drinking and 54% (n=68) reported that it would be easy to ‘‘cut down’’ or stop drinking. Nearly half (49%) of all respondents (n=122) had used marijuana/cannabis at some time prior to being surveyed. The use of other illicit substances was much less frequently reported. Preliminary interview findings indicated a lack of adequate employee knowledge regarding the physical effects of alcohol and other drugs in the workplace. As for conclusions, the proposed study will address a major gap in the literature with regard to the extent of the problem of alcohol and other drug use in the construction industry in Australia. The study will also develop and implement a national, evidence-based workplace policy, with the aim of mitigating the deleterious effects of alcohol and other drugs in this industry.

Input–output structures of the Australian construction industry

The Australian construction industry continues to play an important role in the national economy. Analysis using input–output tables makes it possible to understand the role of the construction industry in Australia’s economy and its relationships to other major industries over years. This study applies several economic indicators to investigate the construction industry’s contributions to gross national product and gross national income, as well as its backward and forward linkage indicators, and its output and input multipliers. The paper also investigates the purchases of goods and services by the construction industry from other sectors and its sales to other industries over the analysis period. Findings from this research may help policymakers to better understand the economic linkages between the construction industry and other major industries, and the structural changes in its inputs and outputs in relation to these others.

Using input-output data in life cycle inventory analysis

The impacts on the environment from human activities are of increasing concern. The need to consider the reduction in energy consumption is of particular interest, especially in the construction and operation of buildings, which accounts for between 30 and 40% of Australia's national energy consumption. Much past and more recent emphasis has been placed on methods for reducing the energy consumed in the operation of buildings. With the energy embodied in these buildings having been shown to account for an equally large proportion of a building's life cycle energy consumption, there is a need to look at ways of reducing the embodied energy of buildings and related products. Life cycle assessment (LCA) is considered to be the most appropriate tool for assessing the life cycle energy consumption of buildings and their products. The life cycle inventory analysis (LCIA) step of a LCA, where an inventory of material and energy inputs is gathered, may currently suffer from several limitations, mainly concerned with the use of incomplete and unreliable data sources and LCIA methods. These traditional methods of LCIA include process-based and input-output-based LCIA. Process-based LCIA uses process specific data, whilst input-output-based LCIA uses data produced from an analysis of the flow of goods and services between sectors of the Australian economy, also known as input-output data. With the incompleteness and unreliability of these two respective methods in mind, hybrid LCIA methods have been developed to minimise the errors associated with traditional LCIA methods, combining both process and input-output data. Hybrid LCIA methods based on process data have shown to be incomplete. Hybrid LCIA methods based on input-output data involve substituting available process data into the input-output model minimising the errors associated with process-based hybrid LCIA methods. However, until now, this LCIA method had not been tested for its level of completeness and reliability. The aim of this study was to assess the reliability and completeness of hybrid life cycle inventory analysis, as applied to the Australian construction industry. A range of case studies were selected in order to apply the input-output-based hybrid LCIA method and evaluate the subsequent results as obtained from each case study. These case studies included buildings: two commercial office buildings, two residential buildings, a recreational building; and building related products: a solar hot water system, a building integrated photovoltaic system and a washing machine. The range of building types and products selected assisted in testing the input-output-based hybrid LCIA method for its applicability across a wide range of product types. The input-output-based hybrid LCIA method was applied to each of the selected case studies in order to obtain their respective embodied energy results. These results were then evaluated with the use of a number of evaluation methods. These evaluation methods included an analysis of the difference between the process-based and input-output-based hybrid LCIA results as an evaluation of the completeness of the process-based LCIA method. The second method of evaluation used was a comparison between equivalent process and input-output values used in the input-output-based hybrid LCIA method as a measure of reliability. It was found that the results from a typical process-based LCIA and process-based hybrid LCIA have a large gap when compared to input-output-based hybrid LCIA results (up to 80%). This gap has shown that the currently available quantity of process data in Australia is insufficient. The comparison between equivalent process-based and input-output-based LCIA values showed that the input-output data does not provide a reliable representation of the equivalent process values, for material energy intensities, material inputs and whole products. Therefore, the use of input-output data to account for inadequate or missing process data is not reliable. However, as there is currently no other method for filling the gaps in traditional process-based LCIA, and as input-output data is considered to be more complete than process data, and the errors may be somewhat lower, using input-output data to fill the gaps in traditional process-based LCIA appears to be better than not using any data at all. The input-output-based hybrid LCIA method evaluated in this study has shown to be the most sophisticated and complete currently available LCIA method for assessing the environmental impacts associated with buildings and building related products. This finding is significant as the construction and operation of buildings accounts for a large proportion of national energy consumption. The use of the input-output-based hybrid LCIA method for products other than those related to the Australian construction industry may be appropriate, especially if the material inputs of the product being assessed are similar to those typically used in the construction industry. The input-output-based hybrid LCIA method has been used to correct some of the errors and limitations associated with previous LCIA methods, without the introduction of any new errors. Improvements in current input-output models are also needed, particularly to account for the inclusion of capital equipment inputs (i.e. the energy required to manufacture the machinery and other equipment used in the production of building materials, products etc.). Although further improvements in the quantity of currently available process data are also needed, this study has shown that with the current available embodied energy data for LCIA, the input-output-based hybrid LCIA appears to provide the most reliable and complete method for use in assessing the environmental impacts of the Australian construction industry.

Alcohol and other drugs in the Australian construction industry : A national evaluation and the best way forward

Anecdotal evidence highlights issues of alcohol and other drugs (AODs) and its association with safety risk on construction sites. Information is limited however regarding the prevalence of AODs in the workplace and there is limited evidential guidance regarding how to effectively address it. This research aimed to scientifically evaluate the use of AODs within the Australian construction industry in order to reduce the potential resulting safety and performance impacts and engender a cultural change in the workforce. A national qualitative and quantitative evaluation of the use of AODs was conducted with approximately 500 employees. Results indicate that as in the general population, a proportion of those sampled in the construction sector may be at risk of hazardous alcohol consumption and support the need for evidence-based, tailored responses. This is the first known study to scientifically evaluate the use of AODs and potential workplace safety impacts in the construction sector.

Ecological sustainable development: a study of the obstacles in Australia's construction industry

Ecological sustainable development (ESD), defined as that which meets the needs of the present without compromising the ability of future generations to meet their own needs, has much to offer in enhancing the quality of life of people and maintaining the environment for future generations by reducing the pollution of water, air and land, minimizing the destruction of irreplaceable ecosystems and cutting down the amount of toxic materials released. However, there is still much to do to achieve full implementation world-wide. This paper reports on three factors-design, attitudes and financial constraints - that are likely barriers to the implementation of ESD within the built environment in Australian industry. A postal questionnaire survey is described aimed at soliciting views on detailed aspects of the factors. This shows that ESD in the Australian built environment has also not been successfully implemented. The main reason is found to be due to the perceived costs involved - the cost of using environmental materials being a predominant factor. The design of ESD, being more sophisticated, also is perceived as involving stakeholders in more expense. There also appears to be a lack of knowledge and a lack of specialised and interdisciplinary design teams available in the Australian context.

Construction 2020 - A vision for Australia's Property and Construction Industry

Construction 2020 is a national initiative undertaken by CRC for Construction Innovation to focus its ongoing leadership of the Australian property and construction industry in applied research and best contribute to the industry's national and international growth and competitiveness. It is the first major report on the long-term outlook for the industry since the late 1990s. The report identifies nine key themes for the future of the property and construction industry. These visions describe the major concerns of the industry and the improved future working environment favoured by its stakeholders. The first and clearest vision, agreed across the industry, is that environmentally sustainable construction the creation of buildings and infrastructure that minimise their impact on the natural environment is an area of huge potential. Here technologies like Construction Innovation's LCADesign can make a big difference. This is a calculator that works out automatically from 3D computer-aided design the environmental costs of materials in a building all at the push of a button. By working with industry, we'd expect to have a comprehensive set of eco-design tools for all stages of the construction life cycle, to minimise energy use, greenhouse and other forms of waste or pollution. Other significant areas of focus in the report include the development of nationally uniform codes of practice, new tools to evaluate design and product performance, comparisons with overseas industries, and a worldwide research network to ensure that Australian technology is at the cutting edge.

Development of the sustainable building and construction products industry in Australia

This paper draws on a major study the authors conducted for the Australian Government in 2009. It focuses on the diffusion issues surrounding the uptake of sustainable building and construction products in Australia. Innovative sustainable products can minimise the environmental impact during construction, while maximising asset performance, durability and re-use. However, there are significant challenges faced by designers and clients in the selection of appropriate sustainable products in consideration of the integrated design solution, including overall energy efficiency, water conservation, maintenance and durability, low-impact use and consumption. The paper is a review of the current state of sustainable energy and material product innovations in Australia. It examines the system dynamics surrounding these innovations as well as the drivers and obstacles to their diffusion throughout the Australian construction industry. The case product types reviewed comprise: solar energy technology, small wind turbines, advanced concrete technology, and warm-mixed asphalt. The conclusions highlight the important role played by Australian governments in facilitating improved adoption rates. This applies to governments in their various roles, but particularly as clients/owners, regulators, and investors in education, training, research and development. In their role as clients/owners, the paper suggests that government can better facilitate innovation within the construction industry by adjusting specification policies to encourage the uptake of sustainable products. In the role as regulators, findings suggest governments should be encouraging the application of innovative finance options and positive end-user incentives to promote sustainable product uptake. Also, further education for project-based firms and the client/end users about the long-term financial and environmental benefits of innovative sustainable products is required. As more of the economy’s resources are diverted away from business-as-usual and into the use of sustainable products, some project-based firms may face short-term financial pain in re-shaping their businesses. Government policy initiatives can encourage firms make the necessary adjustments to improve innovative sustainable product diffusion throughout the industry.

Social outcomes in the construction industry : the case of the Western Australia ‘Percent for Art’ policy

Social outcomes, in particular intangible social outcomes, are generally difficult to achieve in the construction industry due to the predominantly episodic, fragmented and heavily regulated nature of construction that presupposes a tendency towards mainstream construction processes and design. The Western Australian ‘Percent for Art’ policy is recognized for stimulating social outcomes, by creating richer and more aesthetically pleasing social environments through the incorporation of artwork into public buildings. A case study of four Percent for Art projects highlights the role of the Artwork Selection Committee in incorporating artwork into construction. A total of 20 semi-structured interviews were conducted with committee members and policy officers. Data analysis involved a combination of pattern coding and matrix categorization, and resulted in the identification of the committee’s three key elements of collaborative communication, democratic decision-making and project champions. The findings suggest these key elements foster the interaction, communication and relationships needed to facilitate feedback, enhance relationships, create cross-functional teams and lower project resistance, which are all necessary to overcome constraints to social outcomes in construction. The findings provide greater insight into the mechanisms for achieving social outcomes and a basis for future discussion about the processes for achieving social outcomes in the construction industry.

Equal employment opportunity and its links to the participation of women in the construction industry : the case of Australia

Australia is currently experiencing a resources boom and jobs in the male dominated fields of construction and engineering are at a premium. Employment in the construction industry, historically and today, is overwhelmingly male and, with an ageing population this predominately older male workforce will be retiring in greater numbers in the coming decade. Despite more that 25 years of anti- discrimination legislation and equal opportunity legislation these industries still employ few women in operational roles. This paper investigates the issue of the low representation of women in the construction industry. Our investigation involves the analysis of 95 organisation progress reports on the equal opportunity strategic programs in the construction industry. Findings indicate that this industry is not engaging with equal employment opportunity programs and further that equity outcomes for women in the industry are not evident.

NEC Contracting: Evaluation of the Inclusion of Dispute Review Boards in lieu of Adjudication in the Construction Industry in the United Kinddom

The construction industry is renowned for spending vast sums in the resolution of disputes, but never in the prevention. The purpose of this paper is to analyse the New Engineering Contract (NEC) to determine whether or not adjudication has become misaligned with the contract’s objective of promoting effective management. In doing so, the paper examines dispute review boards in order to ascertain if they could be a viable alternative to adjudication. A sequential mixed methodology is adopted including a detailed literature review, eight semi-structured interviews, culminating in the circulation and analysis of a questionnaire, to record the significance of the factors identified. The research concludes that the majority of individuals agree that dispute review boards would be more aligned with the NEC. The familiarity of members, the potential to curb rogue behaviour of parties and the proactive nature of the board are flagged as positive features, however the cost aspect requires further investigation. The reservations made in the study about adjudication, such as the priority given to speed over accuracy and also the adversarial nature of the process, suggest that a preventative step prior to proceeding to adjudication would coincide more with the three core themes of the NEC Contract and therefore, be a positive addition.