Relationship between head contractors and subcontractors in the construction industry : a critical review

The interaction between head contractor and subcontractor in modern construction often contributes to the degree of success or failure of any large-scale construction project. In this paper, previous research on the relationship and interaction between head contractor and subcontractor is examined in order to establish how these relationships will affect the overall performance of a project. Based on the review, research questions on how to best manage the interaction and relationship between these two vital project participants are proposed and future research direction discussed.

A systemic view of innovation adoption in the Australian beef industry

Significant investments in developing technological innovations have been made in the Australian beef industry but with low adoption rates. By modelling the key variables and their interactions in the innovation adoption process, this research seeks to demonstrate the complexity and dynamics of the process. This research uses causal loop modelling and develops a holistic model of the current innovation adoption system in the Australian beef industry to show the complexity of dynamic interactions among multiple variables. It is suggested that innovation adoption is such an extremely complex issue, and we need to shift our views on this issue from a paradigm of linear thinking to systems thinking. Innovation adoption is more likely to be enhanced based on a full understanding of the complexity and dynamics of the system as a whole. The paper demonstrates to practitioners and developers of innovation the multiple variables and interactions impacting innovation adoption.

Analysing governance categories used on project alliances in the construction industry

In Australia, collaborative contracts, and in particular, project alliances, have been increasingly used to govern infrastructure projects. These contracts use formal and informal governance mechanisms to manage the delivery of infrastructure projects. Formal mechanisms such as financial risk sharing are specified in the contract, while informal mechanisms such as integrated teams are not. Given that the literature contains a multiplicity of often untestable definitions, this paper reports on a review of the literature to operationalize the concepts of formal and informal governance. This work is the first phase of a study that will examine the optimal balance of formal and informal governance structures. Desk-top review of leading journals in the areas of construction management and business management, as well as recent government documents and industry guidelines, was undertaken to to conceptualise and operationalize formal and informal governance mechanisms. The study primarily draws on transaction-cost economics (e.g. Williamson 1979; Williamson 1991), relational contract theory (Feinman 2000; Macneil 2000) and social psychology theory (e.g. Gulati 1995). Content analysis of the literature was undertaken to identify key governance mechanisms. Content analysis is a commonly used methodology in the social sciences area. It provides rich data through the systematic and objective review of literature (Krippendorff 2004). NVivo 9, a qualitative data analysis software package, was used to assist in this process. A previous study by the authors identified that formal governance mechanisms can be classified into seven measurable categories: (1) negotiated cost, (2) competitive cost, (3) commercial framework, (4) risk and reward sharing, (5) qualitative performance, (6) collaborative multi-party agreement, and (7) early contractor involvement. Similarly, informal governance mechanisms can be classified into four measureable categories: (1) leadership structure, (2) integrated team, (3) team workshops, and (4) joint management system. This paper explores and further defines the key operational characteristics of each mechanism category, highlighting its impact on value for money in alliance project delivery. The paper’s contribution is that it provides the basis for future research to compare the impact of a range of individual mechanisms within each category, as a means of improving the performance of construction projects.

Antecedents of consumer brand loyalty in the Australian wine industry

The wine industry has become fiercely competitive worldwide and as a result, consumers are increasingly exposed to a wider range of wines in retail outlets. This expanding consumer choice means that there is a need for Australian wineries to develop and build consumer loyalty toward their brands. This paper aims to empirically examine the factors influencing consumer loyalty to wine brands. Using data from Australian wine consumers, the authors empirically test a model of antecedents of wine brand loyalty. The model considers wine brand trust, wine brand satisfaction, wine knowledge, and wine experience. Hypotheses were tested with structural equation modeling. The findings of this study show that wine knowledge and wine experience affect wine brand loyalty indirectly through wine brand trust and wine brand satisfaction. In addition, it is demonstrated that consumer satisfaction with a wine brand is the strongest driver of wine brand loyalty. The result of this study has value for Australian wineries, wine retailers, and wine marketers.

The potential of XML technology as an answer to the data interchange problems of the construction industry

The complex supply chain relations of the construction industry, coupled with the substantial amount of information to be shared on a regular basis between the parties involved, make the traditional paper-based data interchange methods inefficient, error prone and expensive. The successful information technology (IT) applications that enable seamless data interchange, such as the Electronic Data Interchange (EDI) systems, have generally failed to be successfully implemented in the construction industry. An alternative emerging technology, Extensible Markup Language (XML), and its applicability to streamline business processes and to improve data interchange methods within the construction industry are analysed, as is the EDI technology to identify the strategic advantages that XML technology provides to overcome the barriers to implementation. In addition, the successful implementation of XML-based automated data interchange platforms for a large organization, and the proposed benefits thereof, are presented as a case study.

A Triple Bottom Line Planning Tool for Measuring Sustainability : A Systems Approach to Sustainability Using the Australian Dairy Industry as a Case Study

Sustainability is a key driver for decisions in the management and future development of organisations and industries. However, quantifying and comparing sustainability across the triple bottom line (TBL) of economy, environment and social impact, has been problematic. There is a need for a tool which can measure the complex interactions within and between the environmental, economic and social systems which affect the sustainability of an industry in a transparent, consistent and comparable way. The authors acknowledge that there are currently numerous ways in which sustainability is measured and multiple methodologies in how these measurement tools were designed. The purpose of this book is to showcase how Bayesian network modelling can be used to identify and measure environmental, economic and social sustainability variables and to understand their impact on and interaction with each other. This book introduces the Sustainability Scorecard, and describes it through a case study on sustainability of the Australian dairy industry. This study was conducted in collaboration with the Australian dairy industry.

ACE research briefing paper 007 : Ken Talbot - an entrepreneur's contribution to the growth of the Australian Mining Industry

Ken Talbot was one of Australian mining’s most successful entrepreneurs and rose to the top of his industry to become one of Australia’s wealthiest men. Although the nation’s resources industry is synonymous with global names such as Xstrata, BHP Billiton and Rio Tinto, Ken was an individual who made a big impact on the development and growth of the sector. This case study examines Ken’s achievements, his transition from employee to entrepreneur, and the qualities that enabled him to succeed at such a high level. In particular, it focuses on his Jellinbah and Coppabella mining developments that directly led to the creation of Macarthur Coal and the Talbot Group. By the time of his premature death in an African plane crash in 2010, Ken had amassed a fortune estimated at almost $1 billion and was aged just 59. The last publically available Talbot Group annual report for calendar year 2009 showed that the investment portfolio of the group returned 113 per cent that year. Even throughout the global financial crisis the portfolio made a positive return on investment of no less than 10 per cent. Ken’s sense of mateship and his tremendous people skills were keys to his success in the mining industry and the wider community. In addition to excelling in business, he is also remembered for his philanthropy and leaving 30 per cent of his estate to charity through the Talbot Family Foundation.

Embedded creatives in the Australian manufacturing industry

According to 2011 Australian Census figures, embedded creative employees (creative employees not working in the core Creative Industries) make up 2 per cent (or a total of 17 635) of manufacturing industry employees. The average for all industries is 1.6 per cent. In the 2011–2012 financial year the manufacturing industry formed 7.3 per cent of Australia’s gross domestic product (GDP), contributing approximately AU$106.5 billion to the economy (Department of Industry, Innovation, Science, Research and Tertiary Education 2013). Manufacturing is central to innovation, accounting for over one-quarter of all business expenditure in R&D in 2010–2011, representing around AU$4.8 billion invested in R&D (ibid.). Facing challenges such as sustainability concerns, ever-increasing offshore production and the global financial crisis, the Australian manufacturing industry needs to remain relevant and competitive to succeed. Innovation is one way to do this. Given the contribution of the manufacturing industry to the Australian economy, and the above-average portion of embedded creatives in manufacturing, it is important to consider what exactly embedded creatives add to the industry. This chapter, inspired by the Getting Creative in Healthcare report (Pagan, Higgs and Cunningham 2008), examines the contribution of embedded creatives to innovation in the manufacturing industry via case studies and supplemental data.

An exploration of the extent, use and success in the application of Building Information Modelling (BIM) in the UK construction industry

Building Information Modelling (BIM) has been regarded as a one stop shop capable of addressing the ills of the construction industry. Yet, while some firms have accepted BIM as a new way to work and gone on to record success, others (which have not so done) have raised such questions as: ‘How is BIM defined? Is it a tool or a process? Which kinds and sizes of organisations stand to benefit from BIM?’ These questions form the basis of this research. Hence, having explored the relevant body of literature, this research investigates three organisations within the UK – described as the earliest adopters of BIM – and considers how they have fared in terms of project performance in the years since adopting BIM; focusing on project cost, delivery time and quality achievement. This investigation also probed two of the leading voices in BIM in the UK in search of the much needed answers. The findings of the research show that successful projects executed in the organisations that have used BIM is predicated on its adoption as a process, rather than as a tool of technology; a process that changes the way work in the construction industry is typically done. Moreover, the successes recorded in the firms researched give credence to project success consequent upon adopting BIM. Nevertheless, the findings of this research show that the cornerstone of this success is leadership-driven innovation.

Spinning a sustainable yarn : environmental sustainability and brand story in the Australian fashion industry

In the Australian fashion industry, few fashion brands have intervened in the design of their products or the systems around their product to tackle environmental pollution and waste. Instead, support of charities (whether social or environmental) has become conflated with sustainability in the eyes of the public. Thus it is difficult to assess with any accuracy fashion brands’ response to sustainability. This article aims to address this through proposing a categorization system to structure the various interventions that a company may make. This system is applied to two case studies, analysing campaigns that respond to environmental sustainability by two established Australian brands, Country Road and Billabong. The case studies demonstrate how the interventions employed by a company, at least in the Australian context, are carefully developed to align with their brand story, revealing the interplay between the intangible aspects of a brand’s positioning and the tangible, measurable impacts of their garments.

Improving safety communication of ethnic minorities in the construction industry of Hong Kong

The construction workforce in Hong Kong is experiencing a severe ageing problem and labour shortage. One initiative to enhance the supply of manpower is to assist ethnic minorities joining the industry. It is foreseeable that the percentage of ethnic minorities in the construction workforce will keep increasing. Statistics show that ethnic minorities were nearly 30% more likely to have work-related injuries than local workers in some developed countries. However, official statistics on the safety of ethnic minorities are not available in Hong Kong. A search in newspaper archive revealed that ethnic minorities in the construction industry of Hong Kong are subjected to higher fatality rate than local workers, just as is the case in many developed countries. This reflects that the safety of ethnic minorities has not received the attention it rightly deserves. Safety communication has been one of the key factors leading to accidents. Safety communication barriers of ethnic minorities impede them from receiving safety training and acquiring safety information effectively. Research towards improving the safety communication of ethnic minorities in the construction industry of Hong Kong becomes more urgent. This paper will provides an initial report on a research project which focuses on improving the safety communication of ethnic minorities in the construction industry of Hong Kong. Quantitative and qualitative research methods including Social Network Analysis (SNA) applied in conducting the research are first discussed. Preliminary statistics of construction accidents related to ethnic minorities in Hong Kong are then presented.

The application of social network analysis in the construction industry of Hong Kong

The Hong Kong construction industry is currently facing ageing problem and labour shortage. There are opportunities for employing ethnic minority construction workers to join this hazardous industry. These ethnic minority workers are prone to accidents due to communication barriers. Safety communication is playing an important role for avoiding the accidents on construction sites. However, the ethnic minority workers are not very fluent in the local language and facing safety communication problems while working with local workers. Social network analysis (SNA), being an effective tool to identify the safety communication flow on the construction site, is used to attain the measures of safety communication like centrality, density and betweenness within the ethnic minorities and local workers, and to generate sociograms that visually represent communication pattern within the effective and ineffective safety networks. The aim of this paper is to present the application of SNA for improving the safety communication of ethnic minorities in the construction industry of Hong Kong. The paper provides the theoretical background of SNA approaches for the data collection and analysis using the software UCINET and NetDraw, to determine the predominant safety communication network structure and pattern of ethnic minorities on site.

Three-dimensional printing in the construction industry: A review

3D printing (3Dp) has long been used in the manufacturing sector as a way to automate, accelerate production and reduce waste materials. It is able to build a wide variety of objects if the necessary specifications are provided to the printer and no problems are presented by the limited range of materials available. With 3Dp becoming cheaper, more reliable and, as a result, more prevalent in the world at large, it may soon make inroads into the construction industry. Little is known however, of 3Dp in current use the construction industry and its potential for the future and this paper seeks to rectify this situation by providing a review of the relevant literature. In doing this, the three main 3Dp methods of contour crafting, concrete printing and D-shape 3Dp are described which, as opposed to the traditional construction method of cutting materials down to size, deliver only what is needed for completion, vastly reducing waste. Also identified is 3Dp’s potential to enable buildings to be constructed many times faster and with significantly reduced labour costs. In addition, it is clear that construction 3Dp can allow the further inclusion of Building Information Modelling into the construction process - streamlining and improving the scheduling requirements of a project. However, current 3Dp processes are known to be costly, unsuited to large-scale products and conventional design approaches, and have a very limited range of materials that can be used. Moreover, the only successful examples of construction in action to date have occurred in controlled laboratory environments and, as real world trials have yet to be completed, it is yet to be seen whether it can be it equally proficient in practical situations. Key Words: 3D Printing; Contour Crafting; Concrete Printing; D-shape; Building Automation.

Jobs for creatives outside the creative industries: A study of creatives working in the Australian manufacturing industry

More creatives work outside the creative industries than inside them. Recent Australian Census data show that 52 per cent of creatives work outside of the core creative industries. These embedded creatives make up 2 per cent of manufacturing industry employees. There is little qualitative research into embedded creatives. This paper aims to address this by exploring the contribution of creative skills to manufacturing in Australia. Through four case studies of designers and marketing staff in lighting and car seat manufacturing companies, this paper demonstrates some of the work that embedded creatives undertake in the manufacturing industry and some of the ways that they contribute to innovation. The paper also considers perspectives embedded creatives bring to manufacturing and challenges involved in being a creative worker in a non-creative industry. This research is important to economic development issues, demonstrating some of the roles of key innovators in an important industry. This work also informs the education of creative industries students who will go on to contribute in a variety of industries. Furthermore, this research exemplifies one industry where employment is available to creatives outside of the creative industries.