Construction efficiency: A tale of two developed countries
By Prof Craig Langston MCIOB, Bond University, Australia
Published in Engineering, Construction and Architectural Management, Vol.21 No.3, pp. 320-335, 2014.
Abstract
The measurement of construction performance is a vexed problem. Despite much research effort, there remains little agreement over what to measure and how to measure it. The problem is made even more complicated by the desire to benchmark national industry performance against that of other countries. This paper introduces a new method for comparing international construction efficiency, tested on a dataset of 337 modern high-rise buildings in Australia and the United States. In doing so it demonstrates that the ratio of cost over time is capable of ranking the efficiency of projects, building contractors, cities and even entire industries – not only today, but also retrospectively.
The conclusion, based on data from the largest five cities in each country, is that efficiency on site is improving in both countries. The growth in baseline cost/m2 suggests a possible rise in project complexity over time. While the trend in efficiency improvement is similar, there is evidence that base costs in Australia have outstripped the United States. As a result, ‘real’ construction efficiency in Australia is relatively less. The USA is outperforming Australia in terms of construction efficiency by 1.10% per annum.
This paper was the Highly Commended Winner of the 2014 CIOB Research Paper Award.
The judge's said, “An extremely well-structured paper that outlines a new model for measuring construction efficiency. The author pulls together a considerable amount of existing data from the principal cities of Australia and USA. The paper tackles a very difficult subject that researchers and economists have struggled with for many years. It shows potential for moving towards more coherent global measures of construction performance, and how these can be used to inform management from an international perspective.”
--CIOB
Featured articles and news
Expert taskforce to spearhead new, new town generation
Sir Michael Lyons given 12 months for recommendations.
Government policy statement on new towns
A coded vision for a new generation of new towns.
AT Principal Designer exemplars published
Supporting clear and comprehensive demonstration of the skills required.
Homes England goes to TOWN for co-housing project
Marmalade Lane developer selected for Northstowe neighbourhood.
Cohousing and related approaches to solve housing issues
Different forms of community housing explained with examples.
Alternative and off-grid housing communities in the UK
From Hockerton Housing Project to Tinkers Bubble.
Skills gap highlighted to Minister for Industry
Key opportunity in mission for economic growth and net-zero.
World Green Building Week 9-13 September
Join in the 16th annual event led by the World GBC.
Specifying XPS in masonry cavity walls below DPC level
Moisture requirements, DPCs and third party certification.
Types of rigid foam insulation
A brief description and some of the main construction types.
Metal composite material panel systems MCM and MCP
Sandwich finishes, forms, details, core and their impacts.
Cumbria's vernacular architecture
A history of building impeded by unsettled times.
CIOB and MMC Ireland announce strategic partnership
For better working conditions, and a more productive construction sector.
Grenfell Phase 2 final report for construction, at a glance
Twenty-three key issues raised and their recommendations.
Approved Document B: Fire Safety upcoming updates
Including sprinklers in care homes, National classes and Fire resistance.
Tools and processes supporting a robust golden thread
BSRIA Handover Information and O&M Manuals guidance.