Advanced
search

To read this content please select one of the options below:

Application of a bottom-up approach to estimate economic impacts of building maintenance projects: cladding rectification program in Australia

Pauline Teo (School of Property, Construction and Project Management, College of Design and Social Context, RMIT University, Melbourne, Australia)
Akvan Gajanayake (School of Property, Construction and Project Management, College of Design and Social Context, RMIT University, Melbourne, Australia)
Sajani Jayasuriya (School of Property, Construction and Project Management, College of Design and Social Context, RMIT University, Melbourne, Australia)
Ali Izaddoost (School of Civil Engineering, College of Engineering, University of Tehran, Tehran, Iran)
Treshani Perera (School of Property, Construction and Project Management, College of Design and Social Context, RMIT University, Melbourne, Australia)
Nader Naderpajouh (School of Property, Construction and Project Management, College of Design and Social Context, RMIT University, Melbourne, Australia)
Peter S.P. Wong (School of Property, Construction and Project Management, College of Design and Social Context, RMIT University, Melbourne, Australia)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 26 February 2021

Issue publication date: 10 February 2022

563

Abstract

Purpose

This paper critically reviews economic impact assessment methods adopted in construction-related projects, to develop and present a novel bottom-up approach suitable to estimate regional economic impacts of building maintenance projects.

Design/methodology/approach

A thorough literature review of economic impact assessment in construction projects is carried out to identify the most relevant approach to estimate wider economic impacts of building maintenance projects. Based on these findings, a model based on the bottom-up approach to estimate wider economic impacts is developed. The applicability and face validity of the developed model is demonstrated through a case of cladding replacement program in Australia.

Findings

The literature review revealed that bottom-up models are better suited for estimating regional economic impacts of maintenance projects, given the challenges of obtaining micro-level economic data in the maintenance sector. In relation to the total economic impacts (direct and indirect), the results show that for every $1 of government spending on similar projects the Gross State Product would increase by $1.34. In terms of employment impact, over 70% of the direct economic value addition is driven by the increase in labour, where close to 3 FTE jobs will be required for each $1 million of spending on cladding replacement projects.

Originality/value

This paper presents a model to estimate the wider economic impacts of building maintenance projects, which is typically overlooked in the construction management field. The proposed model is developed to incorporate the variability of different building maintenance projects so that the economic impact resulting from these projects could be estimated more accurately. This model can be used by local government decision-makers to justify and prioritise maintenance projects in a similar manner to new construction projects.

Keywords

Acknowledgements

This research is supported by the Queensland Government Department of Housing and Public Works (QDHPW) through the Sustainable Built Environment National Research Centre under the grant number 3.66. Any opinions, findings, conclusions, and recommendations expressed in this paper are those of the authors and do not necessarily reflect the views of the funding agency.

Citation

Teo, P., Gajanayake, A., Jayasuriya, S., Izaddoost, A., Perera, T., Naderpajouh, N. and Wong, P.S.P. (2022), "Application of a bottom-up approach to estimate economic impacts of building maintenance projects: cladding rectification program in Australia", Engineering, Construction and Architectural Management, Vol. 29 No. 1, pp. 333-353. https://doi.org/10.1108/ECAM-10-2020-0802

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

Related articles

Manage cookies

We’re listening — tell us what you think

Join us on our journey