New housing supply and residential construction costs in Australia : a panel ECM approach

The supply of new housing in Australia has been experiencing a low increase rate since the 1990s in conjunction with an increasingly strong housing demand. On the contrary, residential construction costs across Australia?s states maintained dramatic increases simultaneously. Economic theory suggests that new housing supply is correlated to the costs of residential constructions. However, few empirical studies have focused on examining this relationship for Australian housing markets. To comprehensively investigate the relationship between the supply of new housing and residential construction costs a function for new housing supply considering the effects of regional heterogeneities is introduced in this study. By estimating a panel error correction model (ECM) applicable for quantifying the correlation with regional heterogeneities, this research identifies that a causal link and a strong correlation exist in between new housing supply and residential construction costs in Australia.

A review of the cost estimation issues in the tender preparation process in construction industry

Cost estimation process is undertaken to predict the total cost of the project. Studies indicate that one of the construction company failures in contracting is because of the uncertain, incorrect, and unrealistic cost estimation. Cost estimation process are heavily influenced by the complexity of the project, scale and scope of construction, market conditions, method of construction, site constraints, client’s financial position, buildability and the location of the project. However, there are other combinations factors that have not been studied thus far. Hence, this paper focuses on the review of other researchers’ findings in relation to cost estimation issues in the construction industry. Among the findings, it has been revealed that the cost estimation issues are related to accuracy, human factors, practical knowledge and insufficient cost data/information. The aim of this paper is to investigate these factors and determining other potential factors that may influence cost estimation process in the construction industry.

lnvestigating spatial linkages of construction prices in Australia's regions

Linkages among different construction markets have attracted great of attention from the construction economist. With notable exceptions, most of this infestation has carried out by using input-output analysis. Interactions among regional construction markets have been discussed in few studies and none of them investigate spatial effects on the regional construction markets. This study employed spatial econometric techniques, spatial autocorrelation and convergence tests, to analysis interactions and linkages among construction price indices in Australian six states and two territories. The empirical results indicate the presence of significant positive spatial correlation between the construction prices in Australian eight construction markets and the degree of dependence decrease sufficiently quickly as the space between units increase. The results of convergence test further present evidence on "ripple effect" in the construction prices in Australian regional markets and the changes in regional construction price would positively influence neighboring states first, and then spread out into others, and then the regional prices converge and reach a long-run equilibrium in the following quarters. Urban development policymakers and construction developers could benefit from the analysis of spatial linkages in regional construction markets.

Research of the construction industry efficiency in China-based on DEA panel data approach

The efficiency of the construction industry is analyzed based on provinces panel data in China in this paper. The Mean Number of Employee and the Mean Completed Investment are used as inputs. The Mean Actual Sales of Commercial Houses and the Mean Net Profit are used as outputs. Data Envelopment Analysis (DEA) model is used to measure the efficiency of the construction industry. Shanghai and Zhejiang are found technically efficient. Shandong is scale efficient but technology efficiency is lower. There are two provinces are decreasing returns to scale and other provinces are increasing returns to scale. On the whole, the technology efficiency of the construction industry of China is lower. Based on the conclusions, the paper proposes some suggestions to improve the efficiency of the construction industry in China.

Factors affecting commitment and satisfaction of project managers in the construction industry

Construction project managers normally need develop their professional knowledge and practical skills in construction technologies and management on the basis of long term work experience. Their organizational commitment and job satisfaction level significantly influence their performance attitudes and job achievements. Keeping construction project managers highly committed to and satisfied with the employed companies is extremely vital to employed construction companies but is really difficulty due to the non-attractive job circumstances. This research investigates the major demographic variables that affect the organizational commitment and job satisfaction of project managers in the construction industry. Based on an empirical study, the statistical results indicate that some demographical variables play a substantial role in construction project managers' organizational commitment and job satisfaction. With this knowledge, construction organizations can draw up operational strategies to retain their project managers.

Lessons learned practices in the UAE construction industry

The failure of learning from our mistakes or those of others, has generated unnecessary waste of time and costs, in the construction industry, due to its project based, fragmented and unstable nature. Lessons Learned, as an important way of improving projects performance, is analyzed in this study, with the aim to explore the current practice of Lessons Learned in the UAE construction industry. A literature review has revealed what “Lessons Learned” is under different contexts, and focused on various factors influencing a Lessons Learned Programme. The research method of a series of structured interviews, followed by an on line questionnaire, is adopted in this study. It was found that although the concept of Lessons Learned is quite familiar by most of professionals in the project management in the UAE construction industry, Lessons Learned practice is mainly performed in an informal way (individually or ad hoc). As for barriers for Lessons Learned practice, Culture factors, such as “Afraid to be blamed for mistakes” and “lack of learning culture” (1st and 2nd rank) influence significantly in Lessons Learned practice. It is also found that a formal lessons learned programme does exist in some organizations. However, with the lack of a dedicated Lessons Learned repository and Lessons Learnt system, Lessons Learned has yet a long way to reach its potential.

Improving the practice of subcontract nomination in the UAE construction industry

Subcontracting is a common aspect of procurement strategy in construction. The practice of subcontract nomination has produced many problems to the construction industry in the UAE. Examining the nature of associated challenges and investigating new approaches to improve the nomination practice become more critical and demanding. An initial research on the relevant literature was conducted to establish a better understanding of the problems and possible solutions. Then, a series of semi structured interviews were carried out with senior construction professionals in the UAE to examine how the findings of the initial research apply and relate to the UAE construction industry. The analysis and findings of the interviews formed the basis of a closed questions questionnaire. The respondents of the questionnaire were mainly asked to rate the nomination challenges and the approaches to improve the nomination practice. The research concluded that despite the significant reasons and benefits of nomination, the associated risks and challenges don’t encourage adopting it. The full involvement of the MC in the nomination process from the outset and the better detailed provisions of the contract nomination clauses were found the best possible approaches to improve the practice of subcontract nomination in the UAE.

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.

Hungry for change: the food banking industry in Australia

Purpose – Over the last 20 years, food banks in Australia have expanded nationwide and are a well-organised “industry” operating as a third tier of the emergency food relief system. The purpose of this paper is to overview the expansion and operation of food banks as an additional self-perpetuating “tier” in the response to hunger.

Design/methodology/approach – This paper draws on secondary data sourced from the internet; as well as information provided by Foodbank Australia and Food Bank South Australia (known as Food Bank SA) to outline the history, development and operation of food banks. Food banking is then critically analysed by examining the nature and framing of the social problems and policies that food banking seeks to address. This critique challenges the dominant intellectual paradigm that focuses on
solving problems; rather it questions how problem representation may imply certain understandings.

Findings – The issue of food banks is framed as one of food re-distribution and feeding hungry people; however, the paper argue that “the problem” underpinning the food bank industry is one of maintaining food system efficiency. Food banks continue as a neo-liberal mechanism to deflect query, debate and structural action on food poverty and hunger. Consequently their existence does little to ameliorate the problem of food poverty.

Practical implications – New approaches and partnerships with stakeholders remain key challenges for food banks to work more effectively to address food poverty.

Social implications – While the food bank industry remains the dominant solution to food poverty in Australia, debate will be deflected from the underlying structural causes of hunger.

Originality/value – This paper contributes to the limited academic literature and minimal critique of the food bank industry in Australia. It proposes that the rapid expansion of food banks is a salient marker of government and policy failure to address food poverty.