Causes and mitigation for declining productivity in the Australian mid-rise residential construction sector

Böhme, T; Escribano, A; Heffernan, E E and Beazley, S (2018) Causes and mitigation for declining productivity in the Australian mid-rise residential construction sector. Built Environment Project and Asset Management, 8(3), pp. 253-266. ISSN 2044-124X

Abstract

Purpose: The construction industry is a significant driver of economic activity in many countries. However, there has been a lack of growth in productivity within the Australian construction sector over recent years. The purpose of this paper is to gain an in-depth understanding of the causes for declining productivity within the Australian mid-rise residential construction network. Design/methodology/approach: Two in-depth case studies have been conducted with a builder and developer, both significant entities of the Australian mid-rise residential construction network. Case study data collection comprised a five-stage process including semi-structured interviews and archival information review. Findings: Drivers for declining construction productivity were identified under the categories of: industry-, firm- and project-level productivity. The drivers include: incomplete documentation, design changes, inefficient project management, supply chain fragmentation, among others. Originality/value: The contribution of this study is the identification and categorisation of major issues impacting sector productivity along the mid-rise residential construction supply chain. The research identified that the substructure and superstructure are the construction phases during which most productivity losses occur. Mitigations are discussed in terms of systemic sector productivity increases at an industry, firm and project levels.

Item Type: Article
Uncontrolled Keywords: Australia; building information modelling; case study; complexity-reduction strategies; construction productivity; lean production; mid-rise residential; offsite construction; project management
Index terms: mitigation, residential construction, methodology, complexity, project management, construction productivity, construction industry, economic activity, construction phase, construction sector, case study, interview, building information modelling, Australia, lean production, documentation, builder, productivity, fragmentation, design change, strategy
Subjects: practitioner, data collection methods, business, contractual arrangements, economic analysis, project delivery, operations management, Geography, financial risk, project management theory and practice, professional development, management, manufacturing engineering, construction integration, research methods, industry analysis, systems engineering, information systems
Topics: Roles and Professions, Procurement, Cost Management, Business Strategy, Information Management, Engineering Principles, Geographical Context, Project Management, Research Practice, Organizational Design, Digital Applications
Descriptive scope: 4 PCTE

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