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Because of the importance and potential usefulness of construction market statistics to firms and government, consistency between different sources of data is examined…
Because of the importance and potential usefulness of construction market statistics to firms and government, consistency between different sources of data is examined with a view to building a predictive model of construction output using construction data alone. However, a comparison of Department of Trade and Industry (DTI) and Office for National Statistics (ONS) series shows that the correlation coefcient (used as a measure of consistency) of the DTI output and DTI orders data and the correlation coefficient of the DTI output and ONS output data are low. It is not possible to derive a predictive model of DTI output based on DTI orders data alone. The question arises whether or not an alternative independent source of data may be used to predict DTI output data. Independent data produced by Emap Glenigan (EG), based on planning applications, potentially offers such a source of information. The EG data records the value of planning applications and their planned start and finish dates. However, as this data is ex ante and is not correlated with DTI output it is not possible to use this data to describe the volume of actual construction output. Nor is it possible to use the EG planning data to predict DTI construc‐tion orders data. Further consideration of the issues raised reveal that it is not practically possible to develop a consistent predictive model of construction output using construction statistics gathered at different stages in the development process.
The aim of this research is to answer whether or not wholesale interest rates, such as the London Interbank Offered Rate (LIBOR), can be used as an effective policy…
The aim of this research is to answer whether or not wholesale interest rates, such as the London Interbank Offered Rate (LIBOR), can be used as an effective policy instrument to influence construction output. Developers and contractors borrow to finance construction and are charged retail interest rates, determined by the lending bank. The study investigated the relationship between LIBOR and construction industry output.
The study identified two time series, LIBOR and annual construction output and a number of regressions were run using the first differences to observe whether a change in LIBOR alone had a significant influence on construction output lagged by one to four years.
No significant relationship was found between changes in LIBOR and the annual change in construction output, regardless of the number of years lagged.
The policy implication of this research shows that control of demand for construction by government using wholesale interest rates is unlikely to succeed. Banks' lending to developers depends on other factors, such as retail interest rates, risk management and expectations.
The value of this research is that it supports the view that government policy needs to focus on stimulating construction demand, using real projects rather than monetary policies, such as interest rate manipulation.
The allocation of risk among project participants is an important determinant of innovation success in construction projects. The purpose of this paper is to examine the…
The allocation of risk among project participants is an important determinant of innovation success in construction projects. The purpose of this paper is to examine the capacity of risk allocation to encourage the implementation of environmental innovation, particularly sustainable energy innovation (SEI), within the private finance initiative (PFI) project delivery model.
A four-case qualitative research methodology is adopted within the context of the UK government’s building schools for the future programme.
The findings identify that SEIs are encouraged on the innovative projects by the perceived clarity, appropriateness, and manageability of the risks associated with the project’s energy performance on the PFI contract. The main SEIs were largely developed as strategies to manage long-term energy performance risks allocated to private sector actors and safeguard their long-term commitment to the project. However, the findings indicate that excessive perceived innovation-related risks, particularly capital cost risk, may restrict further SEIs to be implemented.
The qualitative case study approach adopted may limit the generalisability of the findings.
The study and provides practical guidance to policymakers and project managers in developing strategies to support the implementation of SEI in PFI projects.
The study attends to a significant gap in knowledge as there is a lack of conceptual and empirical work on managing innovative processes for sustainable energy in PFI projects.
This article considers the role of postgraduate education in the process of management development. The article argues that most management education has to date…
This article considers the role of postgraduate education in the process of management development. The article argues that most management education has to date concentrated on providing managers with a knowledge and understanding of specific organisational issues as defined by academics and that there are few attempts to provide managers with the skills to solve organisational problems as defined by managers. It is suggested that there is a need to rethink the structure and content of management education and that there are opportunities within specialist postgraduate programmes to experiment with new approaches and techniques. The article describes two Masters programmes in Ireland in which attempts are being made to move from a pedagogical to an andragogical approach in teaching and learning. The results to date indicate that there are positive results to be gained from this approach for both managers and lecturers.
UK government policy has emphasised the role of skills development and training as a means of improving productivity performance across all sectors of the economy. The…
UK government policy has emphasised the role of skills development and training as a means of improving productivity performance across all sectors of the economy. The purpose of this paper is to assess the appropriateness of this policy within the context of the construction industry, in light of the recently published statistics.
A trend analysis of construction productivity (measured by Gross Value Added/worker) and skills indicators (qualification attainment and training) was conducted over the period 1995‐2006.
There is inconsistency in the industry's productivity performance, despite the overall increase in qualification attainment levels and participation rates in training over the same period. However, the year‐on‐year change in the participation rate of training was not consistently associated with an improvement in productivity performance.
It is argued that the effective utilisation of skills rather than mere increase in the supply of skills is a key to bringing about productivity improvements. Indeed future policy makers decisions should focus on addressing other influences on productivity performance such as work organisation and management practice to support further development and progression of the UK construction industry.