The evidence of complex variability in construction labour productivity

The complex variability of the 12 construction labour productivity data sets has been examined by analysing the central moments of tendency, and applying the Kolmogorov-Smirnov and Anderson-Darling tests of normality. The results consistently show that the productivity is not normally distributed. In addition, undefined variance causes a failure of the central limit theorem, thus indicating that some basic statistical diagnostics like correlation coefficients and t statistics may give misleading results and are not applicable. A brief comparison with volatility studies in econometrics has revealed surprising similarity with Pareto distributions, which can model undefined or infinite variance. Such distributions are typical of chaotic systems like the logistic equation, whose properties also are described briefly. Therefore, it is suggested that future research should be focused on studying the applicability of chaos theory to construction labour.     

An analysis of construction productivity in Malaysia

The construction industry is an industry of major strategic importance. Its level of productivity has a significant effect on national economic growth. Productivity indicators are examined. The indicators consist of labour productivity, capital productivity, labour competitiveness, capital intensity and added value content of data, which are obtained from the published census/biannual surveys of the construction industry between the years 1999 and 2011 from the Department of Statistics of Malaysia. The results indicated that there is an improvement in the labour productivity, but the value-added content is declining. The civil engineering and special trades subsectors are more productive than the residential and non-residential subsectors in terms of labour productivity because machine-for-labour substitution is a more important process in those subsectors. The capital-intensive characteristics of civil engineering and special trade works enable these subsectors to achieve higher added value per labour cost but not the capital productivity. The added value per labour cost is lower in larger organizations despite higher capital productivity. However, the capital intensity is lower and unit labour cost is higher in the larger organizations.     

Assessing the impact of materials tracking technologies on construction craft productivity

Even though previous studies indicate that construction labor productivity can benefit from automated tracking technologies for field materials management purposes, the actual impact of these technologies on construction productivity has not been fully investigated. This study attempted to quantify the productivity impact of automating the identification and localization of engineered components on industrial sites. For this purpose, an extensive field trial was conducted on a power-plant project. Data from both a traditional tracking process and an automated tracking process designed for the purposes of this study were collected. By considering the traditional tracking process as the baseline for comparison, this study quantified and assessed the impact of the automated tracking methodology. The results indicate that materials tracking technologies can significantly improve craft labor productivity.     

The divergence in aggregate and activity estimates of US construction productivity

Discrepancies exist between aggregate and activity productivity measurements in the US construction industry. Multiple studies using aggregate industry measures suggest that construction productivity has declined over the long term. A longstanding problem with the aggregate measures concerns the difficulty of controlling for inflation so as to accurately measure real output. As an alternative, average activity productivity, measured by individual work activities, indicates that construction productivity has increased over the same time period. Activity measurement data have been collected for 200 construction activities over a 22-year time period from commercial estimation manuals used by contractors and owners to estimate the cost and time requirements for construction. This paper examines the discrepancies between aggregate and activity measurements and suggests possible reasons for their existence.     

An analysis of construction productivity differences between Canada and the United States

Comparisons of industry sectors in advanced economies since the 1960s show that the construction sector has lagged in productivity growth rates, especially in the United States. Although the US and Canadian economies are highly integrated, Canada’s experience differs in key ways. Analysis of these differences offers insight into fundamental construction productivity drivers. Three levels of analyses of construction productivity in the US are provided in this study. The first analysis compared international levels of labour productivity growth. The second compared construction productivity between the US and Canada, and the third analysed cost estimating data from RS Means estimating manuals to measure the changes in labour and partial factor productivity in the US from 1995 to 2009. Statistical significance testing indicates that labour productivity remained nearly constant in the building sub-sector and that partial factor productivity has improved at an annual compound rate of 0.66%. This supports previous findings that US construction has stagnated but is still improving in Canada, with wage differentials and training systems as potential drivers of this difference. While growth rates of productivity seem to decline with higher absolute levels of productivity, there is no evidence that high absolute productivity levels preclude significant growth.     

The elasticity of capital-labour substitution in Singapore construction

A central issue in improving construction productivity is the flexibility in which capital and labour may be substituted. Empirical estimation using Singapore data suggests that the hypothesis of a unitary elasticity of substitution cannot be rejected, thereby providing justification for policy measures to alter the relative prices of factor inputs to encourage mechanisation in construction. The finding is consistent with an earlier study on the American construction industry as well as numerous production function studies conducted for other industries.     

The measurement of productivity in the construction industry

Productivity in the use of resource inputs is of critical importance to the construction industry. This paper is intended to discuss the relative merits of the most commonly used measures of productivity for the purpose of assessing the productive and allocative efficiency of construction in the 1980s.

The paper concludes that the total factor productivity method is the ideal against which the other approaches should be judged. Both average labour productivity and average capital productivity suffer from serious problems in assessing the efficiency of contracting operations. However, under certain circumstances, either can provide an adequate alternative measure.

Of the two main single-factor measures of productivity, capital productivity appears to be superior in most aspects to average labour productivity as a means of assessing the overall financial management of a construction firm. Notwithstanding the problems associated in contracting activities and also the difficulties inherent in obtaining suitable data, capital productivity is recommended for most circumstances when total-factor productivity measures cannot be applied.     

The Singapore buildable design appraisal system: a preliminary review of the relationship between buildability,site productivity and cost.

This paper presents preliminary findings of a study to examine the relationship between site productivity, construction costs and the ‘buildable score’ of a buildable design appraisal system recently developed by the Singapore Construction Industry Development Board. The buildable score for a building is a numerical figure computed by taking into account the level of standardization, simplicity and extent of integrated elements used in the design of a building. The stated objective of the appraisal system is ‘to promote more buildable designs in the industry through assessing the contribution of design to site efficiency and produc6 tivity’. Empirical results from 37 completed building projects provide support for the appraisal system's proposition that ‘a design with a higher buildable score will result in more efficient labour usage in construction and therefore higher site labour productivity’. However, the relationship between construction costs and buildable score is less distinct.     

Forecasting construction industry demand,price and productivity in Singapore: the BoxJenkins approach

In academic research, the traditional Box-Jenkins approach is widely acknowledged as a benchmark technique for univariate methods because of its structured modelling basis and acceptable forecasting performance. This study examines the versatility of this approach by applying it to analyse and forecast three distinct variables of the construction industry, namely, tender price, construction demand and productivity, based on case studies of Singapore. In order to assess the adequacy of the Box-Jenkins approach to construction industry forecasting, the models derived are evaluated on their predictive accuracy based on out-of-sample forecasts. Two measures of accuracy are adopted, the root mean-square-error (RMSE) and the mean absolute percentage error (MAPE). The conclusive findings of the study include: (1) the prediction RMSE of all three models is consistently smaller than the model's standard error, implying the models' good predictive performance; (2) the prediction MAPE of all three models consistently falls within the general acceptable limit of 10%; and (3) among the three models, the most accurate is the demand model which has the lowest MAPE, followed by the price model and the productivity model.     

Construction quality in China during transition: A review of literature and empirical examination

Proper management processes were often regarded as the most important factors affecting construction quality, while the availability of capital, plant, and labour were taken for granted and the demands of property users were always ignored. The phenomenon that the construction quality of projects undertaken by State-Owned Enterprises (SOEs) was better than that of non-SOEs revealed that in developing countries such as China during transition, the availability of resources could be very important to construction quality. By utilizing regression models to evaluate 550 robust province level data from 1993 to 2001, this paper will offer an insight into the hard factors affecting construction quality. It is found that higher power of machinery per labourer, the use of more plants or machinery per m² of floor space, properties with larger unit areas, the growth of GDP, the higher labour productivity tender to be associated with higher quality.     

Constructability rules: guidelines for successful application to bespoke buildings

It is widely recognized that building design has a significant impact on construction productivity and quality. Constructability rules are one way of transferring construction knowledge to building designers. These rules are statements, such as ‘design for minimum time below ground’, which encapsulate a specific aspect of construction best practice. Although constructability rules are relatively easy to formulate and/or obtain, there is little evidence of their successful application. Indeed, architects continue to be held responsible for productivity and quality problems because of their lack of construction knowledge. This paper reports research that informed and included the development of guidelines for successful application of constructability rules to bespoke buildings - those being buildings that are designed to fulfil the requirements of one particular client and/or a single specific location. Findings suggest that there are actions that can be taken to widen the application of rules and increase their success. Potential sources for rules are described. Guidelines are introduced, and information about how they can be actioned by different construction organizations is provided.     

Did the late-2000s financial crisis influence construction labour productivity?

The late-2000s global financial crisis has wrought dramatic impacts on the construction industry. However, the issue of whether the crisis influenced the behaviours of the construction industry has not been addressed yet. This research presents an econometric approach to investigating the effects of the recent global financial crisis on construction labour productivity. By employing the error correction model and panel regression methods, the direct and indirect effects of the financial crisis on the changes in Australian construction labour productivity are explored at national and state levels. Neither the direct nor the indirect effects appear statistically significant. The results indicate that the direct effect of the financial crisis drives up construction labour productivity at the national level, while the indirect effect diminishes productivity. The effects of the financial crisis on the state construction labour productivity vary from state to state. The financial crisis influenced construction labour productivity directly and significantly in the northern and eastern regions, while the direct effects appear not significant in the other states and territories. The indirect effects of the financial crisis on productivity are statistically significant in three regions: the Australian Capital Territory, the Northern Territory and Western Australia. By comparison, the model with the financial effects fails to provide more accurate simulating results. As such, this research concludes that the influence of the late-2000s financial crisis on Australian national and state construction labour productivity is limited.     

The impact of training on labour productivity in the European utilities sector: An empirical analysis

This paper investigates the effects of firm training on productivity growth among sustainable utility companies in Europe during the Great Recession (2008–2010). The empirical analysis uses an ad-hoc dataset based on the merge between financial and sustainability reporting. Evidence indicates the existence of positive effects of both training flow and training stock on average labour productivity, showing the crucial role of firm-sponsored human capital development in the utilities sector. Results and implications offer useful insights for a faster recovery of the utilities sector after severe recessions and in presence of major techno-organizational changes through countercyclical training investments.     

The construction industry as a loosely coupled system: implications for productivity and innovation

Previous research suggests that the construction industry is characterized by (1) particular complexity factors owing to industry specific uncertainties and interdependences, and (2) inefficiency of operations. The aim of this study was to analyse the operations and behaviour of firms as a means of dealing with complexity. The observations made indicate that the industry as a whole is featured as a loosely coupled system. Taking this as a starting point, the couplings among activities, resources and actors were analysed in different dimensions. The pattern of couplings builds on two interdependent layers: tight couplings in individual projects and loose couplings based on collective adaptations in the permanent network. It is concluded that the pattern of couplings seems to favour short term productivity while hampering innovation and learning.     

Construction resource/method factors influencing productivity for high rise concrete construction

Research among European countries had confirmed variance in productivity rates ascribed by construction planning engineers for identical operations. Similar differences in planned construction resource/method factors also had been identified. It is hypothesized that such variance may be due to differences in contractor preference, resulting from socio-economic and corporate objective impacts. Analysis of variance and correlation tests are used to examine this hypothesis on data obtained from French, German and UK contractors. Numerous construction resource/method factors are tested for their impact on mean productivity rates for principal high rise in situ concrete construction operations. Significant productivity rate variations are identified for reinforcement fixing and formwork erection, while variance in concrete placing productivity rates are not found to be dependent upon construction resource/method factors. Contractors seeking to improve productivity might wish to consider solutions for construction resource/method decisions that have been found herein to be related to higher productivity rates and (in some cases) lower costs.     

The European construction industry and its competitiveness: a construct of the European Commission

The 'European construction industry' is a fiction that tends to obscure its heterogeneous character and to mar studies and policies of the European Commission aimed at improving the internal and external 'competitiveness' of the sector. In order to assess the process of integration in Europe under the impact of its own dynamics as well as Union policies, this paper looks at the dynamics of the sector from three different aspects: as investment, production and labour process. It shows, in particular, the persistent regional and social disparities dividing the industry into separate entities. Political attention tends to focus on a small number of construction companies competing for a few projects which represent the European dimension. Yet, these companies still rely on their respective national bases and local labour from the place where construction is carried out. Persistent divisions between the states are also reflected in the low level of transnational organization of the construction industry. The policy of the European Commission generally ignores these divisions and attempts to establish principles intended to make a whole sector more 'competitive', while its component parts, operating at hugely different levels of productivity, do not even meet on the same market. This paper argues that, instead of trying in vain to introduce a 'knock-out' system of competition in the EU Member States, a targeted approach might help raise productivity in lagging regions and thus improve the basis of competitiveness on global markets.     

House building,profits and social efficiency in Sweden and Britain

The paper examines why the housing sector in Britain performs so badly in producing housing. Completion rates are decreasing, dwelling quality is getting worse, while both construction costs and consumer costs are increasing. It does this through discussion of alternative routes to profitability in house building, supported by a comparative analysis of two contrasting cases: Britain and Sweden. In Britain land development gains and speculative extra profits are significant profit sources for house‐builders. Making profits through building itself is neglected; the concomitant is a fragmented labour process, loss of scale economies, low capitalisation, inadequate technical innovation and stagnant labour productivity. In Sweden house‐builders do not have easy access to land development gains or extra profits. Moreover, they are faced by a well organised and well paid labour force. They are pushed onto the road of making profit through increasing labour productivity and through product improvement. The result is controlled construction costs, improving housing quality and the capacity for sustained output.     

工程机械涂装品质管理

对比工程机械行业与汽车行业在涂装方面的特点,介绍工程机械涂装品质管理的方法和意义.从原材料管理--包括化学原材料供应商资格管理、涂装原材料管理-加强常规性能指标进厂检验及功能性指标的检测、金属原材料管理-加强防腐蚀保护;现场5S管理;工艺管理--建立完善的工艺管理体系,制定相关工艺文件和加强对外协厂家涂装质量的控制,制定相应的管理制度,签订相关的技术协议;质量管理--顾客级、公司级、部门级和自主级的4级质量控制体系;供应商服务--设置专职售后技术服务人员及人员培训等多方面,对工程机械企业涂装品质管理的方法进行了探讨.指出工程机械产品涂装贯彻"持续改善的思想",在满足基本设备的条件下,采取合理的管理制度,开拓思维,充分调动每一位员工的聪明才智,工程机械企业也能做到高品质的涂装质量.     

Does senior executives’ perception of environmental uncertainty affect the strategic functions of construction firms?

Insofar as the dynamic interaction between construction firms and their external environment is concerned, little empirical work has been done to examine how the external environment as it is perceived by senior executives affects the way firms operate. Results from 526 firms across various construction-related sectors show a link exists between senior executives’ perceived environmental uncertainty and the kinds of activities or strategic functions that firms use. Results also show that while the day-to-day firm support activities are not generally affected by differences in perceived managerial environmental uncertainty, firms do not seem to consistently put more emphasis on strategic functions like long-range planning process, and R&D activities even when the perceived environmental uncertainty is high. The contradictory results indicate that broader industry characteristics might be at play in influencing this lack of innovativeness by firms to pursue high-end strategic functions that could potentially improve the competitiveness of the industry.     

The impact of non‐financial incentives on bricklayers' productivity in Nigeria

High productivity is regarded as a goal that ensures long‐term survival of firms. In Nigeria's labour‐intensive construction industry, firms are currently applying various non‐financial incentive schemes aimed at improving operatives' productivity. A questionnaire survey involving the management and operatives of construction firms was conducted to determine the impact of these scheme on the productivity of bricklayers. The survey was complemented with on‐site observation and measurement of bricklayers' output on 40 construction projects in order to determine the impact of non‐financial incentive schemes on productivity. Comparative analysis of sites with and without incentives showed that non‐financial incentive schemes significantly improved bricklayers' productive time and these schemes accounted for 6% to 26% of the variations in output between the two sets of sites on block laying and concreting activities measured.