Modern construction economics [Book Review]

The editor, Gerard de Valence, points out in the preface, this book is neither a textbook nor a guide to what is done by construction managers and construction economists – read quantity surveyors and the like. Rather, de Valence notes it comprises a collection of chapters each of which focus on matters at the industry level and, in doing so, illustrates that a substantially improved understanding of the building and construction industry can be gained beyond the economics of delivering projects. Before giving some thought to how far each of the chapters achieve this, it’s worth reflecting on the virtues of developing construction economics as its own discipline or sub-discipline in general economics and the bold manner by which de Valence is proposing we do this. That is, de Valence proposes partitioning industry and project economics - as explained in the preface and in Chapter 1. de Valence’s view that “the time seems right” for these developments is also worthy of some consideration.

Quality management in construction projects

[Quality Management in Construction Projects by Abdul Razzak Rumane, CRC Press, Boca Raton, FL, 2011, 434 pp, ISBN 9781439838716] Issues of quality management, quality control and performance against specification have long been the focus of various business sectors. Recently there has been an additional drive to achieve the continuous improvement and customer satisfaction promised by the 20th-century ‘gurus’ some six or seven decades ago. The engineering and construction industries have generally taken somewhat longer than their counterparts in the manufacturing, service and production sectors to achieve these espoused levels of quality. The construction and engineering sectors stand to realize major rewards from better managing quality in projects. More effort is being put into instructing future participants in the industry as well as assisting existing professionals. This book comes at an opportune time.

Safety culture research in the construction sector : interlocked projects in safety competency and safety effectiveness indicators

Safety culture is a concept that has long been accepted in high risk industries such as aviation, nuclear industries and mining, however, considerable research is now being undertaken within the construction sector, with varying levels of success. The current paper discusses three recent interlocked projects that have had some success in the Australian construction industry. The first project examined the development and implementation of a safety competency framework targeted at safety critical positions across first tier construction organisations. Combining qualitative and quantitative methods, the project: developed a matrix of safety critical positions (n=11) and safety managements tasks (SMTs; n=39); mapped the process steps for their acquisition and ongoing development; detailed the knowledge, skills and behaviours required for all SMTs; and outlined organisational cultural outcomes that could be anticipated in a successful implementation of the framework. The second project extended research on safety competency and leadership to develop behavioural guidelines for leaders to drive safety culture change down to second tier companies. This was designed to assist smaller construction companies to customise their own competency framework and develop implementation guidelines that match their aspirations and resources. The third interlocked project explored the use of safety effectiveness indicators (SEIs) as an industry-relevant assessment tool for reducing risk on construction sites. With direct linkages to safety competencies and safety management tasks, the SEIs are the next step towards an integrated safety cultural approach to safety and extend the concept of positive performance indicators (PPIs) by providing a valid, reliable, and user friendly measurement platform. Taken together, the results of the interlocked projects suggest that safety culture research has many potential benefits for the construction industry, particularly when research is conducted in partnership with industry stakeholders. Suggestions are made for future research, including further application and testing of the safety competency framework and aligning SEIs across construction projects of varying size, location and design.

Practice and Procedure. Self-executing order - construction - whether further judicial at required for self-executing order to take effect

In Mango Boulevard Pty Ltd v Spencer [2010] QCA 207, a self-executing order had been made in consequence of continuing default by parties to the proceedings in meeting their disclosure obligations. The case involved several questions about the construction and implications of the self-executing order. This note focuses on the aspects of the case relating to that order.

Property investment, construction and economic growth : the case of Malaysia

It is generally accepted that there is a close relationship between property investment and construction activity. The construction sector plays a crucial role in economic development, especially for a developing nation such as Malaysia. However, the volume of new properties added to the property market is only a fraction of the total volume of the property market. Is the conventional assumption of the relationship between property investment and construction supported by empirical data? This paper revisits the tripartite relationships between economic growths, property investment and construction activities with official Malaysian 2000Q1-2010Q4 quarterly time series data. The Granger causality tests are used to establish the causality runs from the GDP to the value of property transactions, and the growth of construction activities to GDP growth. The result is expected to be useful for policymakers and industrial practitioners in formulating industrial policies and corporate strategies.

The Profiling of Property, Plant & Equipment (PPE) Contributions in Australia and Malaysia Public Listed Construction Companies

The purpose of this paper is to study the profiling of property, plant and equipment (PPE) contributions in Australia and Malaysia construction companies. A company’s worth is usually based on the listed share price on the stock exchange. In arriving at the net profit, the contribution of PPE in the company’s assets is somehow being neglected. This paper will investigate the followings; firstly the level of PPE contribution in the construction firms by comparing the PPE contributions to the company’s asset as a whole which includes fixed (non-current) assets and current assets. This will determine the true strength of the companies, rather than relying on the share prices alone. Secondly, the paper will determine the trend of company’s asset ownership to show the company’s performance of the PPE ownership during the period of study. The data is based on the selected construction companies listed on the Australian Stock Exchange (ASX) and Malaysian Stock Exchange, known as Bursa Malaysia. The profiling will help to determine the strength of the construction firms based on the PPE holding, and the level of PPE ownerships in the two countries construction firms during the period of study.

Identification of key competences of design-builders in the construction market of the People’s Republic of China (PRC)

Design-builders play a vital role in the success of DB projects. In the construction market of the People’s Republic of China, most of the design-builders, however, lack adequate competences to conduct the DB projects successfully. The objective of this study is, therefore, to identify the key competences that design-builders should possess to not only ensure the success of DB projects but also acquire the competitive advantages in the DB market. Five semi-structured face-to-face interviews and two rounds of Delphi questionnaire survey were conducted to identify the key competences of design-builders. Rankings have been assigned to these key competences on the basis of their relative importance. Six ranked key competences of design-builders have been identified, which are, namely, (1) experience with similar DB projects; (2) capability of corporate management; (3) combination of building techniques and design expertise; (4) financial capability for DB projects; (5) enterprise qualification and scale; and (6) credit records and reputation in the industry. The design-builders can make use of the research findings as guidelines to improve their DB competence. These research findings will also be useful to clients during the selection of design-builders.

The investigation of design-build variants in the construction market of the People’s Republic of China

Design-Build (DB) system has been widely adopted overseas but it has not received the same popularity yet in the People’s Republic of China. The selection of design-build variant is regarded as one of the critical obstacles to the application of this alternative. This paper investigates categories of design-build variants in the construction market of China. The develop-and-construction, enhanced design-build, traditional-design-build and engineering procurement-construction (EPC) are the four current designbuild variants adopted by clients. Each of them is developed to meet a varying set of circumstances and has its own advantages and disadvantages. The develop-and-construction is mostly used in large, complex projects in housing industry and it will guarantee client’s great control over the project while still leave some design room for the contractor. The traditional-design-build and enhanced-design-build systems are mostly applied in projects that are comparatively simple, small-scale, and the DB contractors will have greater control of the projects. The EPC is the extension of pure design-build method and is widely adopted in the petrochemical, metallurgical and electronic fields because of the high-technique requirements and the necessity for one entity to control the design, construction, procurement and commissioning etc. Four corresponding design-build projects are also presented in this paper in order to better illustrate the operational process and provide the insight for understanding the design-build variants in Mainland China.

Identification of key competences of DB clients in the construction market of China

The design-build system has been demonstrated as an effective delivery method and gained popularity worldwide. Although there are an increasing number of clients adopting DB method in China, most of them remain inexperienced with method. The objective of this study is therefore to identify the key competences that a client or its consultant should possess to ensure the success of DB projects. Face-to-face interviews and a two-round Delphi questionnaire survey were conducted to find the following six key competences of clients, which include the (1) ability to clearly articulate project scope and objectives; (2) financial capacity for DB projects; (3) capability in contract management; (4) adequate staff or consulting team; (5) effective coordination with contractors and (6) experience with similar DB projects. This study will hopefully provide clients with measures to evaluate their DB competence and further promote their understanding of DB system in the PRC.

Brisbane : urban construction, suburban dreaming

Brisbane, the capital city of Queensland, has catapulted from a small, provincial town to a larger metropolis within two decades from the inception of urban renewal in 1992. Once a low-density suburban city, its inner-city and some suburban areas are now medium to high density, with the rise in apartment buildings creating new and denser modes of living. This article suggests that urbanism demands different habits of living from suburbanism and examines the relationship between the material and representational city to explore the ways in which promotions of the “new” Brisbane during its early urban renewal period reproduces the ethos of suburban living.

Construction of Francophone families’ health literacy in a linguistic minority situation

With the increase in international mobility, healthcare systems should no longer be ignoring language barriers. In addition to the benefit of reducing long‐term costs, immigrant‐friendly organizations should be concerned with mitigating the way language barriers increase individuals’ social vulnerabilities and inequities in health care and health status. This paper reports the findings of a qualitative, exploratory study of the health literacy of 28 Francophone families living in a linguistic‐minority situation in Canada. Analysis of interviews revealed that participants’ social vulnerability, mainly due to their limited social and informational networks, influenced the construction of family health literacy. Disparities in access to healthcare services could be decreased by having health professionals’ work in alliance with Francophone community groups and by hiring bilingual health professionals. Linguistic isolation and lack of knowledge about local cultural organizations among Francophone immigrants were two important findings of this study

Motivating construction organisations through incentives : a case study for client managers

Client-side project manager face challenges in motivating project organisations to pursue exceptional design and construction performance. One approach to improving the motivation of project organisations is by offering a financial incentive reward for the achievement of voluntary performance standards above the minimum required standard. However, little investigation has been undertaken into the features of a successful incentive system as a part of an overall procurement strategy. In response to a lack of information available to client-side project managers tasked with the initial design of an incentive system, the paper explores motivation undera successful incentive and identifies key learnings for client-side project managers to consider when designing incentives. Our findings are based on the results of a large Australian case study which is interpreted against a conceptual framework based on both economic and psychological perspectives of motivation. The results suggest the motivation towards incentive goals is influenced by the value the project organisations place on the incentive reward as a commercial opportunity to increase their profit margins. However, perhaps more important are the relationship management processes that promote commitment to the project; and pride in the achievement of project goals. In the case study, these processes intensified the direct motivational effect of the incentive reward on offer. The findings also highlight the importance of ensuring that incentive goals and performance measurement processes remain relevant to the organisation throughout a project to continuously encourage motivation under changing project conditions.

Genesis and role of standards : theoretical foundations and socio-economical model for the construction and use of standards

A key issue in the economic development and performance of organizations is the existence of standards. Their definition and control are sources of power and it is important to understand their concept, as it gives standards their direction and their legitimacy, and to explore how they are represented and applied. The difficulties posed by classical micro-economics in establishing a theory of standardization that is compatible with its fundamental axiomatic are acknowledged. We propose to reconsider the problem by taking the opposite perspective in questioning its theoretical base and by reformulating assumptions about the independent and autonomous decisions taken by actors. The Theory of Conventions will offer us a theoretical framework and tools enabling us to understand the systemic dimension and dynamic structure of standards. These will be seen as a special case of conventions. This work aims to provide a sound basis and promote a better consciousness in the development of global project management standards. It aims also to emphasize that social construction is not a matter of copyright but a matter of open minds, collective cognitive process and freedom for the common wealth.

Genesis and role of standards : theoretical foundations and socio-economical model for the construction and use of standards

A key issue for the economic development and for performance of organizations is the existence of standards. As their definitions and control are source of power, it seems to be important to understand the concept and to wonder about the representations authorized by the concept which give their direction and their legitimacy. The difficulties of classical microeconomics of establishing a theory of standardisation compatible with its fundamental axiomatic are underlined. We propose to reconsider the problem by carrying out the opposite way: to question the theoretical base, by reformulating assumptions on the autonomy of the choice of the actors. The theory of conventions will offer us both a theoretical framework and tools, enabling us to understand the systemic dimension and dynamic structure of standards seen as special case of conventions. This work aims thus to provide a sound basis and promote a better consciousness in the development of global project management standards, aiming also to underline that social construction is not a matter of copyright but a matter of open minds, collective cognitive process and freedom for the common wealth.

The development of the graphics-decoding proficiency instrument

The Graphics-Decoding Proficiency (G-DP) instrument was developed as a screening test for the purpose of measuring students’ (aged 8-11 years) capacity to solve graphics-based mathematics tasks. These tasks include number lines, column graphs, maps and pie charts. The instrument was developed within a theoretical framework which highlights the various types of information graphics commonly presented to students in large-scale national and international assessments. The instrument provides researchers, classroom teachers and test designers with an assessment tool which measures students’ graphics decoding proficiency across and within five broad categories of information graphics. The instrument has implications for a number of stakeholders in an era where graphics have become an increasingly important way of representing information.