Modelling labour intensive construction and its effect on a developing economy

Wibowo, M A (2004) Modelling labour intensive construction and its effect on a developing economy. PhD thesis, University of Nottingham, UK.

Abstract

Construction products, such as roads, bridges, railways, irrigation, schools, hospitals, dwellings, offices and factories are an important element in the economy and in improving living standards. The importance of the industry is not only in its product, but also in the scale of the industry, its share in the national economy and how it affects society. The construction industry in developing countries should reflect this situation by applying the appropriate methods and technology. This includes the choice between labour intensive and equipment based construction techniques. However, the detailed way in which all these aspects interact is not well understood. This thesis describes research to integrate a variety of aspects in order to model different types of construction method used (labour intensive and equipment based methods) and their effects on a developing economy. Surveys and questionnaires were used to collect the data required in Indonesia. Soft systems methodology was used as preliminary model in order to show inter relationship of elements considered. This preliminary model was further developed using hard systems theory. The hard systems models produced consist of one system and seven sub systems model that represented the construction industry in Indonesia. The models were validated and calibrated against information obtained from the questionnaires. A series of Indonesian input-output tables (1985, 1990, 1995 and 1998) also were used to investigate the Indonesian construction industry from the macro economic perspective. The results of the model simulations using the models suggest that in an unrestricted industry labour intensive construction would generate three times as much income for the local population as would equipment based method. The results also indicate that a labour intensive method could employ eight times as much labour as would equipment based methods. However, when the industry was restricted by lack of professionals, severe reduction occur in the local labour force even when investment increases. A proposal is made to use the models as the basis for a decision support system to assist institutional decision about construction investment.

Item Type: Thesis (Doctoral)
Uncontrolled Keywords: Indonesia; construction method; construction products; decision support; developing countries; dwellings; equipment; income; investment; irrigation; population; schools; soft systems methodology; standards; systems theory
Index terms: income, national economy, modelling, construction industry, Indonesia, population, input-output table, questionnaire, systems theory, construction product, proposal, developing country, society, labour force, decision support, soft systems methodology, construction method, survey, developing economy
Subjects: economics, decision analysis, industry analysis, data collection methods, economic development, theoretical framing, research methods, Geography, development economics, demography, building construction, communities and social development, project planning, economic analysis, analytical methods
Topics: Supply Chain Management, Risk Management, Engineering Principles, Project Management, Geographical Context, Site Management, International Construction, Urban Studies, Stakeholder Management, Research Practice, Business Strategy
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here