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Construction is possibly one of the most cost orientated industries in any economy. The primary mode of supplier selection has always tended to be on the basis of lowest material or service cost at point of consumption. Indeed, this remains the case even in the post‐Latham (1994) and Egan (1998) world in which we live. In general, construction cost estimates are based on a straight ‘take off’ of the quantities required. All further ‘other’ costs in the form of overhead, profit, labour and wastage are consolidated into the cost of the materials. Construction is unique within the various industries making up a modern economy in that the bulk of the materials and components that it uses are of relatively low value while being of high volume. Consequently, a significant proportion of the ‘other’ costs associated with materials purchases must be in the form of transportation from the point of extraction and / or production to the point of consumption. This paper provides an overview of the hidden costs associated with the transportation of construction materials within the industry and proposes improved methods of managing the logistics of the construction process e.g. reverse logistics, in order to reduce costs and increase the basic sustainability of the construction process.

The New Zealand construction sector is similar to many other countries with a few large companies and many small and micro enterprises. It seeks to achieve a 20 per cent increase in productivity by 2020 which requires a step change in how the sector operates and buy-in from key stakeholders. The purpose of this paper is to provide a set of levers to improve productivity in the construction sector and develop an implementation schedule.

This paper adopts a systems approach taking account of the nature of the building sector and the whole life cycle of a building from design to end-of-life. Information gained from the post-construction phases informs the pre-construction and construction phases.

Productivity is an integrated model whereby increases in process efficiency are executed with quality materials and workmanship, in a manner that is affordable for both the client and contractor and sustainable over time. A series of interviews and workshops produced 10 nodal points and 19 crucial levers which were prioritised for implementation. Additionally, indicators were developed to monitor progress over time and provide information for further corrective action to the system.

The effect of using a few targeted levers in unison provided significantly more gains than individual applications. Modelling real world responses to process stimuli outlined in this paper is extremely valuable. This provided the opportunity for key construction stakeholders to estimate the effects of decision making during a project.

Previous studies identified factors affecting productivity. Piecemeal approaches to improve productivity have resulted in systemic failure. A whole of life approach provides valuable insights to improve productivity in the construction and pre-construction phases which have a flow-on effect through the life cycle. Importantly, this research proposes drivers, an implementation scheme and indicators that provide leverage on nodal points to improve productivity.

Today there are a number of different types of procurement routes available for clients to choose from. Each different type of procurement (traditional, design and build, management, etc.) has its own proponents and inherent strengths and weaknesses. Selection of optimal procurement systems is difficult, because even experienced clients cannot know all the potential benefits or risks for each system. Procurement is, therefore, a succession of ‘calculated risks’. Industry and academia have focussed research on reducing procurement risk through better procurement‐system selection methods. Current research considers procurement as a set of rationalistic decisions within a closed environment, aiming to produce generic, prescriptive rules for clients and advisers to use to select the ‘best’ procurement route for their project. This paper seeks to identify whether prescriptive procurement guidance was adhered to on a set of case study projects. It was found that clients usually selected appropriate procurement systems, and where an inappropriate system was selected, alterations were made in contract form to incorporate aspects of the ‘best’ procurement route.

The purpose of this paper is to consider the applicability of logistics management in construction and facilitate a better understanding of construction supply chains by studying the logistical functions of builders' merchants.

Given that logistics application in construction is still in its infancy, conceptual understanding of the problem is a prerequisite. Thus, a grounded theory approach is followed utilising pre‐existing data as a means of building a model faithful to evidence. The model is analysed by following a discrete‐event simulation modelling approach.

This research demonstrates that examining supply chains from a logistics viewpoint can provide significant insight into the performance of construction supply chains. The analysis also shows that logistics costs are exponentially related to the levels of material demand and number of vehicle movements.

The developed model has to be further investigated and tested for different scenarios. Supplementary refinements of the model are necessary in order to allow the generalisation of the results and the development of an analytical planning tool.

This research illustrates the increased potential of construction for benefiting from an improved capability within logistics which can lead to further developments within the field of logistics in the industry.

This paper considers the significant function of builders' merchants in the supply chains in order to balance the contractor‐centric research efforts that dominate existing literature and take into consideration the holistic nature of supply chain management and its operational aspects.

Within construction procurement, transaction cost economics offers a mechanism to understand “unseen” costs associated with the pre- and post-contract work. Pre-contract, these include costs related to information gathering and procurement. Post-contract they include activities of contract administration and enforcement. The purpose of this paper is to estimate the magnitude of transaction costs (TCs) for different procurement systems used in construction projects in New Zealand. Specifically estimating the relative values of TCs for Traditional and Design-Build delivery systems for the purpose of comparison.

This study develops a conceptual model for the relationship between procurement systems and TC. The model was operationalized and developed into a questionnaire. A cross-sectional sample approach was deployed, involving pilot and survey questionnaires, and results verification through “real world” cases. Data were sought from construction professionals in management, design and operations (i.e. project managers, architects, engineers, quantity surveyors, and procurement officers). TCs were measured using time-spent conducting procurement-related activities as a surrogate for cost. Professionals evaluate their time-spent in procurement activities using a Likert scale 1-5, comparing the Traditional and Design-Build delivery systems. Data were triangulated with “real world” cases to test and explain the developed model. The test included validity and reliability, path analysis, regression analysis, factor analysis, and structural equation modelling (SEM). The primary analytical technique used was SEM to yield information on goodness-of-fit, model development and comparison, and confirmatory strategies. SPSS Amos 21 statistical software was used for data analysis and model development.

The results suggest that procurement systems have indirect impact on TCs. The relationship between procurement system and TCs is fully mediated by costs of information, procurement, administration, and enforcement. Applying the developed models (the Traditional and Design-Build) to “real world” cases, it was found that TCs in the Traditional system amounts to 18.5 percent of the annual salary cost of a project manager (as an indicator quantum), while in the Design-Build system, it amounts to 14.5 percent of the annual salary cost of a project manager. TCs were calculated using regression equations based on factor loadings in the Traditional and Design-Build models.

This study applies new theoretical model for the link between procurement system and TCs, investigating and empirically demonstrating the influence of procurement system on TCs in construction. It also offers a new plausible explanation for the factors influencing TCs in procurement. The study emphasizes “in-house” TCs from the perspective of the professionals. The findings have practical implications on construction business practice due to their robust empirical nature and theoretical framework, which might enhance the performance of the construction industry.

This study contributes to the procurement selection in construction, by introducing a new conceptual model for the link between procurement system and TCs. It has extended the current practices for procurement selection by estimating TCs for the Traditional and Design-Build systems for comparison.

The purpose of this paper is to present a logistical analysis of construction supply chains by assessing the impact of varying demand on the performance of builders' merchants' logistics.

Taking into consideration that the vast majority of construction materials are distributed through intermediary organisations, the paper focuses on the logistics of builders' merchants. The study follows a field study approach to develop a conceptual logistics model facilitating experimentation using simulation modelling.

The paper highlights the importance of incorporating intermediary organisations in the study of construction supply chains and reveals the implications of varying demand on logistics performance related to inventory and transportation costs.

In order to limit assumptions associated with individual company characteristics, the sample has included data from one builder's merchant company. To allow external benchmarking, the suggested approach has to be applied to a wider sample.

The paper provides a practical understanding in terms of the function of intermediary organisations in construction supply chains and the application of logistics management in construction.

Considering the complexity involved in construction supply chain operations, the value of this research is twofold. First, the research contributes to an interdisciplinary approach to the study of construction supply chains and second, provides a risk‐free environment for modelling supply chain cost performance.

The purpose of this paper is to explore the meaning, as well as the drivers, of innovation in theory and practice for gaining insight into the reasons why the diffusion of innovative technologies fails; even though they promise a superior performance compared to incumbent technologies. The paper describes an explorative study of the diffusion of domotics technologies in residential construction.

Innovation systems theory, which points to the “technological regime” in the actor network as a key element in the diffusion, acceptance, and application of new technologies was used to analyse the diffusion of domotics technologies in residential construction.

The results underscored the expected “bottlenecks” in the technological regime of the innovation system that curtailed the diffusion of domotics technologies in construction.

The novelty of the paper is in the approach of the research and the collected data on the technological regime amongst the stakeholders. These stakeholders were principally involved in development and implementation of the domotics technologies in residential construction; these observations provided useful insights into the diffusion of domotics technologies.

The purpose of this paper is to highlight the low level of adoption of innovative products in the UK. The paper presents a case study conducted for investigating the potential for UK further education colleges (FECs), in order to extend their existing activity and develop a role as independent centres for specialist knowledge of innovative products.

To test assumptions which had been previously published by government departments (Departments of Business, Enterprise and Regulatory Reform and Trade and Industry), two surveys were conducted, focusing on the level of knowledge and experience of construction small to medium‐sized enterprises (SMEs) regarding innovative products and processes. In total, six colleges collaborated and successfully bid for funding to test their ability to deliver a wider role in the construction community. Each appointed a fully funded full‐time adviser to research, collect, and diffuse information about a specific specialist area.

The results indicate that there is evidence of the need for independent sources of information about innovative products. The colleges have shown their ability to build knowledge and capacity to offer independent advice. The outcome however indicates that the sustainability of the role is unlikely without an effective business case and the commitment of senior college management teams.

A unique agreement to collaborate was an important factor throughout this project and would be a pre‐requisite to any generalisation of the model.

The provision of independent advice of this nature is not otherwise readily available in the UK for key SME suppliers (including designers, specifiers, clients, and builders). In the absence of such facilities, the barriers to innovation identified are less likely to be reduced.

The originality of the research lies in determining a new role for locally accessible FECs and a new resource for SMEs engaged in designing and delivering construction projects.

User‐driven innovation (UDI) has been proven to successfully increase the value of products and services in single companies with direct linkages to the end‐user. The construction material industry often has no direct linkages to the end‐user, due to supply networks through builder merchants. Moreover, a lack of user knowledge is common in such networks, and companies rarely have explicit knowledge on how their products and services are in fact used and valued by their end‐users. Thus, it is clear that UDI is not directly applicable to the construction material industry without further developments. Hence, the purpose of this paper is to demonstrate that a network perspective is essential when adapting and implementing UDI in the construction material industry and to let the advantages of doing so surface.

The research design includes a number of different approaches and types of interaction between the researchers and industry. Additionally, an extensive literature review on UDI is carried out to identify variables necessary for successful adaptation to a network perspective.

The conclusion of this research validates that a network approach to adapting UDI in the construction material industry is a precondition for a successful innovation journey. In addition, it was concluded that by adapting the network perspective new value‐adding potentials became visible, which could have a huge impact on innovation, effectiveness, efficiency, etc. in the construction material industry.

The paper adds to the body of knowledge on how to implement UDI in a supply network by developing a framework for such an innovation process. The framework has its outset in any given generic new product development model with a logical sequence of steps. However, the framework is further developed into defining the networks activities, the internal activities, and the user‐oriented activities needed.