Towards a relational contracting framework in the Australian construction industry : an initial framework

The Australian construction industry is characterized as being a competitive and risky business environment due to lack of cooperation, insufficient trust, ineffective communication and adversarial relationships which are likely lead to poor project performance. Relational contracting (RC) is advocated by literature as an innovative approach to improve the procurement process in the construction industry. Various studies have collectively added to the current knowledge of known RC norms, but there seem to be little effort on investigating the determinants of RC and its impact on project outcomes. In such circumstances, there is lack of evidence and explanation on the manner on how these issues lead to different performance. Simultaneously, the New Engineering Contract (NEC) that embraced the concept of RC is seen as a modern way of contracting and also considered as one of the best approaches to the perennial problem of improving adversarial relationships within the industry. The reality of practice of RC in Australia is investigated through the lens of the NEC. A synthesis of literature views on the concept, processes and tools of RC is first conducted to develop the framework of RC. A case study approach is proposed for an in-depth analysis to explore the critical issues addressed by RC in relation to project performance. Understanding the realities of RC will assist stakeholders in the construction industry with their investment in RC.

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.

Digital image processing techniques for pavement macro-texture analysis

Road surface macro-texture is an indicator used to determine the skid resistance levels in pavements. Existing methods of quantifying macro-texture include the sand patch test and the laser profilometer. These methods utilise the 3D information of the pavement surface to extract the average texture depth. Recently, interest in image processing techniques as a quantifier of macro-texture has arisen, mainly using the Fast Fourier Transform (FFT). This paper reviews the FFT method, and then proposes two new methods, one using the autocorrelation function and the other using wavelets. The methods are tested on pictures obtained from a pavement surface extending more than 2km's. About 200 images were acquired from the surface at approx. 10m intervals from a height 80cm above ground. The results obtained from image analysis methods using the FFT, the autocorrelation function and wavelets are compared with sensor measured texture depth (SMTD) data obtained from the same paved surface. The results indicate that coefficients of determination (R2) exceeding 0.8 are obtained when up to 10% of outliers are removed.

The big picture : an integrated approach to fashion design education

This paper examines current teaching practice within the context of the Bachelor of Design (Fashion) programme at AUT University and compares it to the approach adopted in previous years. In recent years, staff on the Bachelor of Design (Fashion) adopted a holistic approach to the assessment of design projects similar to the successful ideas and methods put forward by Stella Lange at the FINZ conference, 2005. Prior to adopting this holistic approach, the teaching culture at AUT University was modular and divorced the development of conceptual design ideas from the technical processes of patternmaking and garment construction, thus limiting the creative potential of integrated project work. Fashion Design is not just about drawing pretty pictures but is rather an entire process that encapsulates conceptual design ideas and technical processes within the context of a target market. Fashion design at AUT being under the umbrella of a wider Bachelor of Design must encourage a more serious view of Fashion and Fashion Design as a whole. In the development of the Bachelor of Design degree at AUT, the university recognised that design education would be best serviced by an inclusive approach. At inception, Core Studio and Core Theory papers formed the first semester of the programme across the discipline areas of Fashion, Spatial Design, Graphic Design and Digital Design. These core papers reinforce the reality that there is a common skill set that transcends all design disciplines with the differentiation between disciplines being determined by the techniques and processes they adopt. Studio based teaching within the scope of a major design project was recognised and introduced some time ago for students in their graduating year, however it was also expected that by year 3 the student had amassed the basic skills required to be able to work in this way. The opinion concerning teaching these basic skills was that they were best serviced by a modular approach. Prior attempts to manage design project delivery leant towards deconstructing the newly formed integrated papers in order to ensure key technical skills were covered in enough depth. So, whilst design projects have played an integral part in the delivery of fashion design over the year levels, the earlier projects were timetabled by discipline and unconvincingly connected. This paper discusses how the holistic approach to assessment must be coupled with an integrated approach to delivery. The methods and processes used are demonstrated and some recently trialled developments are shown to have resulted in achieving the integrated approach in both delivery and assessment.

The use of supply chain management to reduce delays : Malaysian public sector construction projects

Construction delays are a critical problem for Malaysian public sector projects. These delays have been blamed mainly on inefficient traditional construction practices that continue to dominate the current industry. This paper reports the progress to date of a Ph.D. research project aimed at developing a framework to utilize Supply Chain Management (SCM) tools to improve the time performance of Malaysian Government projects. The potential of SCM has been identified for public sector governance and its use in Malaysia is now being considered within the strategy of the Malaysian Construction Industry Master Plan (2006-2015). Encouraged by success in the UK, there is a cautious optimism concerning the successful application of SCM in Malaysia. This paper considers delay as a problem in Malaysian public sector projects, establishes the need to embrace SCM and then elucidates the need and strategies for the development of a delay reduction framework. A literature review, survey mechanism and structured interview schedule will be undertaken to achieve the research objectives. The final research outcome will be a framework that addresses root delay contributors (“pathogens”) and applies SCM tools for their mitigation.

Monitoring energy performance of air conditioners in classrooms

Air quality and temperatures in classrooms are important factors influencing the student learning process. To improve the thermal comfort of classrooms for Queensland State Schools, Queensland Government initiated the "Cooler Schools Program". One of the key objectives under this program was to develop low energy cooling systems as an alternative to high energy demand conventioanl split system of air conditioning (AC) systems. In order to compare and evaluate the energy performance of different types of air conditioners installed in classrooms, monitoring systems were installed in a state primary school located in the greater outer urban area of Brisbane, Australia. It was found that the installation of monitoring systems could have a significant impact on the accuracy of the data being collected. By comparing the estimated energy efficiency ratio (EER)for four qualified air conditioners included in this study, it was also found that AC6, a hybrid air conditioner newly developed by the Queensland Department of Public Works (DPW), had the best energy performance, although the current data were not able to show the full advantages of the system.

Will insulation always bring benefits in energy saving and thermal comfort?

Building insulation is often used to reduce the conduction heat transfer through building envelope. With a higher level of insulation (or a greater R-value), the less the conduction heat would transfer through building envelope. In this paper, using building computer simulation techniques, the effects of building insulation levels on the thermal and energy performance of a sample air-conditioned office building in Australia are studied. It is found that depending on the types of buildings and the climates of buildings located, increasing the level of building insulation will not always bring benefits in energy saving and thermal comfort, particularly for internal-load dominated office buildings located in temperate/tropical climates. The possible implication of building insulation in face of global warming has also been examined. Compared with the influence of insulation on building thermal performance, the influence on building energy use is relatively small.

Relational contracting and its efficacy of project performance in the Australian construction industry

The Australian construction industry is characterized as being a competitive and risky business environment due to lack of cooperation, insufficient trust, ineffective communication and adversarial relationships which are likely lead to poor project performance. Relational contracting (RC) is advocated by literature as an innovative approach to improve the procurement process in the construction industry. Various studies have collectively added to the current knowledge of known RC norms, but there seem to be little effort on investigating the determinants of RC and its efficacy on project outcomes. In such circumstances, there is lack of evidence and explanation on the manner on how these issues lead to different performance. Simultaneously, the New Engineering Contract (NEC) that embraced the concept of RC is seen as a modern way of contracting and also considered as one of the best approaches to the perennial problem of improving adversarial relationships within the industry. The reality of practice of RC in Australia is investigated through the lens of the NEC. A synthesis of literature views on the concept, processes and tools of RC is first conducted to develop the framework of RC. A case study approach is proposed for an in-depth analysis to explore the critical issues addressed by RC in relation to project performance. Understanding the realities of RC will assist stakeholders in the construction industry with their investment in RC.

Relationship Based Procurement Strategies for the 21st Century

This book Relationship-based Procurement Strategies for the 21st Century, is an important foundation document to better understand social and industry drivers from traditional adversarial contracting techniques to a more relationship-based approach building on the strengths of individual partners. This publication has evolved from the Commonwealth Government’s sponsorship of the case study of The National Museum of Australia Project—the first building construction project (as distinct from a resource development or engineering project) undertaken by a project alliance anywhere in the world.

Construction project delivery and industry skills : crafting a better fit

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 trial. ----- ----- 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.

Profiles of organisational culture in Indonesian construction companies

Although relatively few studies have been undertaken analyzing the drivers of performance for construction companies in producing and delivering satisfactory quality of project works, findings from previous research reveal that there is a significant correlation between the company’s organisational culture and the quality performance of contractors. It has also been noted that the nature of organisational culture is a major determinant factor for quality improvement. This paper presents a summary of the results of a pilot study investigating the organisational culture profiles of five Indonesian construction companies. The survey utilizes the Organisational Culture Assessment Instrument (OCAI), which is based on the Competing Values Framework (CVF). This instrument assesses six important and significant traits of organisational culture: dominant characteristics, organisational leadership, management of employees, organisational ‘glue’, strategic emphasis, and criteria of success. These assessed cultural dimensions identify the most close-fitting perspective of a company’s inherent culture drawn from four possible types: clan, adhocracy, market, or hierarchy culture. Further discussion is presented, which describes the companies’ dominant cultural profiles in terms of strength and congruence and how an effective quality management system operates within the dominant culture type. This analysis contributes to the finding that a suitably ‘strong’ organisational culture impacts positively on construction organisation success within its own specific sector.

Strategic alliances in building construction : a tender evaluation tool for the public sector

Building construction is a highly competitive and risky business. This competitiveness is compounded where conflicting objectives amongst contracting and subcontracting firms set the stage for an adversarial and potentially destructive business relationship. Clients, especially those from the public sector, need broader tender evaluation criteria to complement the traditional focus on bid price. There is also a need for change in the construction industry—not only to a more cooperative approach between the constructing parties—but also from a confrontationist attitude to a more harmonious relationship between all stakeholders in providing constructed facilities. A strategic alliance is a cooperative relationship between two or more organisations that forms part of their overall strategies, and contributes to achieving their major goals and objectives. Strategic alliances in building construction may provide a useful tool to assist public sector construction managers evaluate tenders and concurrently encourage more cooperative relationships amongst construction stakeholders. This paper begins with an overview of the Australian building construction industry, then reviews the existing strategic alliance literature and describes an analysis framework comprising six attributes of strategic alliances for application to construction organisations—trust, commitment, interdependence, cooperation, communication, and joint problem solving. These attributes are currently being used to collect data from 70 building construction firms in Queensland to assess their respective levels of strategic alliance. Given the trend towards broader indicators of construction firm performance, these attributes are proposed as a tool for use in the tender evaluation process for public works.