Construction labor productivity convergence: a conditional frontier approach

Purpose-Understanding and simulating construction activities is a vital issue from a macro-perspective, since construction is an important contributor in economic development. Although the construction labor productivity frontier has attracted much research effort, the temporal and regional characteristics have not yet been explored. The purpose of this paper is to investigate the long-run equilibrium and dynamics within construction development under a conditional frontier context. Design/methodology/approach-Analogous to the simplified production function, this research adopts the conditional frontier theory to investigate the convergence of construction labor productivity across regions and over time. Error correction models are implemented to identify the long-run equilibrium and dynamics of construction labor productivity against three types of convergence hypotheses, while a panel regression method is used to capture the regional heterogeneity. The developed models are applied to investigate and simulate the construction labor productivity in the Australian states and territories. Findings-The results suggest that construction labor productivity in Australia should converge to stable frontiers in a long-run perspective. The dynamics of the productivity are mainly caused by the technology utilization efficiency levels of the local construction industry, while the influences of changes in technology level and capital depending appear limited. Five regional clusters of the Australian construction labor productivity are suggested by the simulation results, including New South Wales; Australian Capital Territory; Northern Territory, Queensland, and Western Australia; South Australia; and Tasmania and Victoria. Originality/value-Three types of frontier of construction labor productivity is proposed. An econometric approach is developed to identify the convergence frontier of construction labor productivity across regions over time. The specified model can provides accurate predictions of the construction labor productivity.

Barriers to implementing reverse logistics in South Australian construction organisations

Purpose - This paper aims to present a survey of the perceptions of the barriers to implementing reverse logistics (RL) practices in South Australian (SA) construction organisations. Despite the extensive research on forward logistics and RL, there is a paucity of studies that examine the barriers to implementing RL particularly within the Australian construction industry. This study builds on the ongoing research being undertaken by the authors, entitled “Designing for reverse logistics (DfRL) within the building life cycle: practices, drivers and barriers”, which is examining the best practices and drivers that could be used as a “road map” for developing appropriate solutions for the successful implementation of RL. Design/methodology/approach - Data were collected by utilising a triangulated data collection approach, a literature review and 49 questionnaires. The review of the literature identified 16 barriers to implementing RL. The quantitative survey data were subjected to descriptive and inferential statistics with correlation analysis to examine the relationships between different pairs of variables comprising RL’s critical barriers. Findings - The following barriers were indicated as most significant: lack of incorporation of salvaged materials by designers; regulation restrictions to usage of recovered materials and components; potential legal liabilities; higher costs; and longer-time association with deconstructing buildings. The least ranked barriers were mostly drawn from the operational and industrial categories as being: organisational lack of support for deconstruction due to incompatible design; lack of organisational support for deconstructing buildings due to higher health and safety risks; and inadequate skills and experience for deconstruction (operational). The industrial barrier was related to “higher costs of salvaged materials in comparison to virgin products”. Research limitations/implications - First, the reported findings are focussed on one study that used questionnaire surveys within the construction industry; therefore, the results may not be generalisable to other contexts. Further, studies should be conducted and extended to other industrial sectors beyond the construction industry. Second, the quantitative study (n 49) used a smaller sample, and the survey items were based on the review of the literature. Practical implications - The identified barriers could be used as a “road map” for the development of appropriate solutions for the successful implementation of RL, and to improve the environment-related decision-making processes of contractors. Originality/value - This study makes a contribution to the body of knowledge on the subject of RL within a previously unexplored SA context. In addition, the study provides some insights on the contributory effects of the barriers to the implementation of RL. It is the first work undertaken to determine the barriers to the adoption of RL within the SA construction industry.

Analysis of reverse logistics implementation practices by South Australian construction organisations

Purpose – A large number of benefits have been reported when reverse logistics (RL) is fully implemented in the construction industry. However, RL is yet to become common place in the construction sector, particularly in Australia. The particular sub-sector in which RL operates is small and weak and the remainder of the sector must embrace and accommodate it comfortably. Research is lacking on how to promoting RL in the construction industry. Very little has been done to identify the current practices that have the potential to promote RL industry-wide. The purpose of this paper is to identify the practices that work well in the sector, a strategy could be mapped out to promote RL to all stakeholders. Design/methodology/approach – In order to fill the above gap, the present study used a mixed method approach to gather and evaluate current practices and their potential to promote RL in South Australia’s construction industry. Practices that were identified using a comprehensive literature review were evaluated with a questionnaire survey and series of interviews involving construction professionals. Findings – The findings are that practices facilitating deconstruction is the most important, followed by practices facilitating the use of salvaged materials in new construction to promote RL in South Australia. Awareness of deconstruction benefits, challenges and procedures at the organisation level and facilities and services at industry level were associated with RL implementation. Availability of salvaged materials in the market was found to influence its use in new construction and as a consequence its demand. Designing for reverse logistics is another practice that could facilitate deconstruction and the onus of its promotion lies mainly with the designers. Research limitations/implications – This research was confined to one state in Australia. As such the generalisation to other states and other countries should be treated cautiously. Practical implications – The findings of this study can help inform the industry and its stakeholders on areas that they need to concentrate more on to make the South Australian construction industry a fully RL integrated one. To that end the authors propose some recommendations arising from the findings reported here. Originality/value – This study makes a contribution to the body of knowledge on reserve logistics within a previously unexplored South Australian context. In addition, the study provides valuable insights into the contribution of RL practices to the construction industry.

Implementation of innovative technologies in small-scale construction firms: five Australian case studies

Purpose - The users of construction technologies such as builders and trades people have been acknowledged as sources of potentially important innovations. These innovations may be in the form of safer, less labour intensive, or cheaper methods and processes. The purpose of this paper is to assess whether the Australian construction industry is providing an environment where user-based innovation is being supported and implemented. Design/methodology/approach - An explorative study was undertaken to provide an insight into actual experiences of the implementation of user-based innovation. The data were collected through faceto- face semi-structured interviews providing case studies on multiple aspects of the implementation of innovative construction technologies. The cases involved a cross section of advances, including product, tool, and system technologies. Findings - The main motivation behind developing the technologies was problem solving. The associated industries of manufacturing and retail, as well as consultants within the construction industry present the greatest barriers to implementation. Originality/value - This research provides a better understanding of the factors that are preventing the successful implementation of user-based innovative construction technologies in small firms.

A qualitative examination of major barriers in implementation of reverse logistics within the South Australian construction sector

Despite extensive research on the benefits of reverse logistics (RL), it has yet to become commonplace in the construction industry. Furthermore, the uptake and number of studies on RL remains very limited within the Australian context and particularly related to the construction industry. This paper is aimed at filling that knowledge gap by employing an exploratory approach to examine the critical barriers faced by South Australian construction organizations in implementing RL practices. Semi-structured interviews and a ranking approach facilitated the treatment of qualitative data through quantitative coding using cloud-based applications. The research identified 12 barriers to RL implementation, four of them very significant according to the responses of the interviewees: the regulatory environment, additional costs involved, lack of recognition in the construction supply chain, and extra effort required. The study also explored their inter-relationships through the Co-occurrence Index. The study proposes some remedial measures for RL implementation in South Australia based on the barriers identified.

Sustainability Evaluation of Green Building Certification Systems

The attention on green building is driven by the desire to reduce a building’s running cost over its entire life cycle. However, with the use of sustainable technologies and more environmentally friendly products in the building sector, the construction industry contributes significantly to sustainable actions of our society. Different certification systems have entered the market with the aim to measure a building’s sustainability. However, each system uses its own set of criteria for the purpose of rating. The primary goal of this study is to identify a comprehensive set of criteria for the measurement of building sustainability, and therefore to facilitate the comparison of existing rating methods. The collection and analysis of the criteria, identified through a comprehensive literature review, has led to the establishment of two additional categories besides the 3 pillars of sustainability. The comparative analyses presented in this thesis reveal strengths and weaknesses of the chosen green building certification systems - LEED, BREEAM, and DGNB.

Global virtual engineering teams (GVETs): a fertile ground for research in Australian construction projects context

Implementation of global virtual engineering teams (GVETs) commenced since at least two decades ago, but construction has been behind other industries in terms of harnessing this new paradigm. Nevertheless, GVETs are receiving increasing attention within the construction context due to numerous potential benefits they can bring about for the projects. On the other hand, the research about GVETs in Australia is still in its embryonic stages. Australian scholars noticeably have paid scant attention to GVETs in comparison to their colleagues in other developed countries. This paper assumes the process of implementation of a GVET as an isolated project. The study then highlights the well-known main areas of necessary knowledge for managing a GVET project within the construction context based on a project lifecycle approach. Recognizing the weaknesses of existing literature, the paper sets out an agenda for further research within Australian construction projects.

Decomposition of temporal changes in construction labour productivity

Construction productivity is recognized as an indicator reflecting the performance efficiency and competitiveness of the industry. A large amount of research has been carried out focusing on the decomposition of the influential factors and the temporal trends of construction productivity changes, respectively. However, the decomposition of the temporal changes in construction labour productivity has not yet been explored. Analogous to the framework of the productivity frontier, this research argues for a four-component decomposition of the temporal changes in construction labour productivity, including technology, technology-utilization efficiency, the capital-labour ratio and production capacity. An error correction model is subsequently estimated using the panel data regression method to investigate the effects of these components on the temporal changes in construction productivity across a sample of the Australian construction industry. The empirical results con?rm that the effects of the four components on the temporal changes in construction productivity changes vary over the observed time periods. From the aggregate level, the technology-utilization efficiency and capital-labour ratio across the regions are found to be barriers to growth in Australian construction productivity. Nevertheless, the effects of technology-utilization efficiency and production capacity varied significantly over the three sub-periods, when innovative national economic systems were introduced.

Skill development for innovative procurement environments in construction

The construction industry should be a priority to all governments because it impacts economically and socially on all citizens. Sector turnover in industrialised economies typically averages 8-12% of GDP. Further, construction is critical to economic growth. Recent Australian studies estimate that a 10% gain in efficiency in construction translates to a 2.5% increase in GDP Inefficiencies in the Australian construction industry have been identified by a number of recent studies modelling the building process. They have identified potential savings in time of between 25% and 40% by reducing non-value added steps in the process. A culture of reform is now emerging in the industry – one in which alternate forms of project delivery are being trialed. Government and industry have identified Alliance Contracting as a means to increase efficiency in the construction industry as part of a new innovative procurement environment. Alliance contracting requires parties to form relationships and work cooperatively to provide a more complete service. This is a significant cultural change for the construction industry, with its well-known adversarial record in traditional contracting. Alliance contracts offer enormous potential benefits, but the Australian construction industry needs to develop new skills to effectively participate in the new relationship environment. This paper describes a collaborative project identifying skill needs for clients and construction professionals to more effectively participate in an increasingly sophisticated international procurement environment. The aim of identifying these skill needs is to assist industry, government, and skill developers to prepare the Australian construction workforce for the future. The collaborating Australian team has been fortunate to secure the Australian National Museum in Canberra as its live case study. The Acton Peninsula Development is the first major building development in the world awarded on the basis of a joint alliance contract.

Collaboration and Engagement Throughout The Supply Chain : The Role of Government

Collaboration is acknowledged as a key to continued growth in the Australian construction industry. Government, as a major industry client, has an important role to play with respect to fostering collaboration and ensuring the global competitiveness of the industry. The paper draws upon data collected for the Construction 2020 study and aims to demonstrate that government can a) help to break down the adversarial situation that currently exists between clients, project managers and subcontractors; and b) allow the supply chain to collaborate more effectively in terms of satisfying the relational and financial needs of all parties. Government can also provide a clear set of guidelines (backed up by a functional dispute resolution system) that will promote confidence with respect to forging relationships. Thus, the paper will discuss the way in which public policy can be more closely aligned with actual industry needs in order to promote greater collaboration.

Key performance indicators for measuring construction success

The construction industry is dynamic in nature. The concept of project success has remained ambiguously defined in the construction industry. Project success is almost the ultimate goal for every project. However, it means different things to different people. While some writers consider time, cost and quality as predominant criteria, others suggest that success is something more complex. The aim of this paper is to develop a framework for measuring success of construction projects. In this paper, a set of key performance indicators (KPIs), measured both objectively and subjectively are developed through a comprehensive literature review. The validity of the proposed KPIs is also tested by three case studies. Then, the limitations of the suggested KPIs are discussed. With the development of KPIs, a benchmark for measuring the performance of a construction project can be set. It also provides significant insights into developing a general and comprehensive base for further research.

Supporting pre-tender construction planning with virtual prototyping

Purpose – Virtual prototyping technologies linked to building information models are commonplace within the aeronautical and automotive industries. Their use within the construction industry is now emerging. The purpose of this paper is to show how these technologies have been adopted on the pre-tender planning for a typical construction project. Design/methodology/approach – The research methodology taken was an “action research” approach where the researchers and developers were actively involved in the production of the virtual prototypes on behalf of the contractor thereby gaining consistent access to the decisions of the planning staff. The experiences from the case study were considered together with similar research on other construction projects. Findings – The findings from the case studies identify the role of virtual prototyping in components modelling, site modelling, construction equipment modelling, temporary works modelling, construction method visualization and method verification processes. Originality/value – The paper presents a state-of-the-art review and discusses the implications for the tendering process as these technologies are adopted. The adoption of the technologies will lead to new protocols and changes in the procurement of buildings and infrastructure.

Framework for measuring success of construction projects

The construction industry is dynamic in nature. The concept of project success has remained ambiguously defined in the construction industry. Project success means different things to different people. While some authors consider time, cost and quality as the predominant targets, others suggest that success is something more complex. The aim of this report is to develop a framework for measuring success of construction projects. A range of Key Performance Indicators (KPIs), measured both objectively and subjectively is developed. The identification of KPIs helps set a benchmark for measuring the performance of a construction project and provides significant insights into developing a general and comprehensive base for further research.

Evaluating equal employment opportunity and its impact on the increased participation of men and women in the transport industry

This paper seeks to identify the approaches undertaken in implementing equal employment opportunity in the transport industry in Australia and the links between these approaches and indicators of increased participation of women. This male dominated industry employs limited numbers of women with fewer numbers of women in management. The study analyses data from a unique set of equal opportunity progress reports from all organisations in the transport industry that are required to provide public reports under Australian legislation. The findings indicate a correlation between some approaches to equal opportunity and increased numbers of women in some areas. The study is equally remarkable for what it does not find. Despite widespread equal opportunity implementation across a broad number of employment measures there are limited measures that predict increases in the numbers of women in management or in non-traditional roles. This study differs from others in that it identifies issues specific to one industry and links organisational approach to equal opportunity with the employment status of both women and men.