Search results

The aim of the paper is to examine attitudes of general contractors operating in the Sydney region to the potential use of probability estimating and databases in cost estimating. A sample of 10 large general contractors with a turnover over $100m was selected for the study, which took place in 1993. Responses of the contractors to a standard questionnaire were obtained using face to face interviews. The research described in this paper confirmed the popularity of traditional single value estimating and highlighted the lack of use of probability cost estimating by the general contractors surveyed. The limited availability of client‐prepared bills of quantities for tendering has neither diminished their popularity among bidding contractors nor increased the use of elemental cost planning. Although databases are generally available, subjective judgements of estimators are of greater value in cost estimating. The research has concluded that a change in the estimating paradigm towards probability cost estimating, and the use of databases, are unlikely to occur in the near future.

This paper forms part of on‐going research project being undertaken by the authors into performance of the Building and Construction Industry Security of Payment Act 1999 (NSW) (hereafter referred to as “the act”), which commenced in amended form on 3 March 2003. The aim of the research was to examine the performance of the act and observe what trends, if any, have emerged in the adjudication process in New South Wales from a claimants' viewpoint.

A cross‐sectional survey of claimants was undertaken using a comprehensive multiple‐choice questionnaire administered by post. In answering the questions, the sampled claimants were required to draw on their experience with the adjudication process in their “most recent” payment claim dispute case. Crosstabs were used to determine a frequency distribution of selected variables. The Chi‐square test of independence was performed for the data collected to measure a degree of independence between the selected variables. The nil hypothesis (H₀) tested is whether variables are independent. Where appropriate, Pearson and Spearman correlation coefficients were calculated.

The research reveals that: subcontractors' payment claims are generally smaller in value than those made by general contractors; that degree of lawyer involvement in the adjudication process is substantial in terms of document preparation; that the higher the amount of payment claim, the greater the time input on part of claimants in the preparation of an adjudication application; that a positive correlation exists between the actual value of payment claim and its adjudicated amount and the amount of adjudication fees and the adjudicated amount, and that filing of an adjudication certificate in a court is the most successful means of payment recovery.

It is generally accepted that the parties in the construction industry who carry out construction work, or supply goods and services under a construction contract are afforded little or no security of payment. The object of act is to ensure that any person who undertakes to carry out construction work (or who undertakes to supply related goods and services) under a construction contract is entitled to receive, and is able to recover, progress payments in relation to the carrying out of that work and the supplying of those goods and services. Thus, the research looks to contribute to existing knowledge for the purpose of concluding whether or not the Act produces the expected result of increasing security of payment, and whether the results are consistent with the reason for the act.

Sustainable building development involves several stakeholders, team participants and their fulfilment can affect the performance and outcome of succeeding construction development. The effect of the individual or human component is one of the most desperate reasons for the realisation of any progress in the building sector. Organisations are developing an increasing number of project teams to meet diverse organisational goals as they acknowledge the value and importance of project teams. However, in order to ensure that the project team achieves positive results, management, particularly the project manager, must focus on crucial elements such as team satisfaction. Project success can be influenced by team satisfaction. The project leader usually oversees and manages the team, organising and managing project activities between stakeholders and other team members. The study found that gratitude, enhanced morale, increased responsibility, putting in extra effort and job quality are all reasons why team satisfaction might affect a construction project's success.

The present paper reports on research which attempted to ascertain the attitudes of the management and site personnel of general contractors and subcontractors on the issue of health promotion in the workplace. The main focus was on fitness and nutrition programmes, and the existence of a relationship between the health of employees and their productivity. The data were collected using questionnaires from a sample of eight large general contractors and 14 subcontractors operating in the Sydney region of the Australian construction industry. The responses in the sample were received from eight occupational health and safety (OHS) managers and 34 site workers employed by general contractors, and 14 site workers employed by subcontractors. The attitudes of the respondents toward health promotion in the workplace were found to be highly positive, and supportive of the development and implementation of health promotion programmes. In the opinion of the respondents, job performance and productivity may be increased through health promotion programmes in the workplace.

The purpose of this paper is to report on findings of follow‐up research into the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW), which was undertaken in 2007. The research aims to re‐assess the performance of the Act in the light of strong demand for adjudication of construction payment claims in New South Wales.

A cross‐sectional survey of member firms of The Master Plumbers & Mechanical Contractors Association of NSW and the National Electrical & Communications Association (NSW Chapter) was undertaken using a comprehensive multiple‐choice questionnaire administered by post. The questionnaire comprised 23 questions, whereby all but one question was of a multiple‐choice type. In answering the questions, the sampled claimants were required to draw on their understanding of the Act, and their experience with the adjudication process. Results were compared with a pilot study undertaken by the authors in 2004.

The results indicate that the object of the Act is generally being achieved. Whilst the culture of making late payments remains well entrenched in the construction industry, there appears to be a modest downward trend in the frequency of late payments since the 2004 study. It is now reasonably certain that the act of endorsing payment claims encourages communication between the parties, thus providing an opportunity for early dispute avoidance or resolution. However, the level of knowledge of the Act amongst subcontracting organisations overall has not improved since 2004 study, and may have even declined. It is clear that contractors and subcontractors are not taking full advantage of the Act.

The paper provides evidence of the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW) between 2004 and 2007. The research compares key performance indicators for the purpose of determining whether or not the Act produces the expected result of increasing security of payment, and whether the results are consistent with the reason for the Act. It also provides important insights into the operation of similar legislation in other jurisdictions.

The purpose of this paper is to outline a proposal for a Dual Scheme model of statutory adjudication for the Australian building and construction industry.

The paper deals with the security of payment problem in the Australian construction industry and the legislative response to that problem in New South Wales and elsewhere more generally. The paper highlights deficiencies in current adjudication schemes in Australia and proposes a revised methodology of adjudication by means of the proposed Dual Scheme model. The Dual Scheme is explained in detail and examples are given showing how the Dual Scheme would work in practice.

The Dual Scheme of adjudication allows for adjudication of “progress claims” (just as they are adjudicated now under the “Defined Scheme”), but also provides for separately adjudicated “money claims” in a similar way to that done under the “Non‐specific Scheme”. Both parties to a construction contract can take advantage of adjudication under a Non‐specific Scheme whilst simultaneously maintaining the relative time and cost benefits of the Defined Scheme in dealing with progress payment claims. Implementation of the proposed Dual Scheme would require new legislation.

The Dual Scheme is not a proposal to merely amalgamate two existing models of adjudication in Australia. Rather, it is a Dual Scheme incorporating the philosophy of two disparate systems of adjudication framed in a companionable form. It is hoped that the Dual Scheme may act as a common starting point for eventual agreement between the various interested groups as to what a national scheme of statutory adjudication in Australia will resemble in the future. The Dual Scheme proposal may be of interest in other jurisdictions where statutory adjudication for the construction industry has been introduced or is being contemplated.

The UK construction industry has been at the forefront of finding efficient, cost‐effective and fair methods of resolving disputes. Therefore, to ensure the 1996 Act is more effective in achieving its intended objective, the new Act came into force on the 1 October 2011 in England and Wales, and 1 November 2011 in Scotland. The purpose of this paper is to explore one of the most important amendments in the new Act, the abolition of the “contract in writing” rule. The extent to which the UK industry is aware of the likely implications of the abolition of the “contracts in writing” rule in the new Act on the adjudication has not been empirically explored – which is the core raison d'être of this paper.

A web‐based, online questionnaire survey method was employed to collect data. Descriptive analysis was used to analyse the data obtained from the 102 completed and usable questionnaires for inference and conclusion. This research employed t‐tests to compare means of small to medium‐sized enterprises (SMEs) and large organisations.

The findings suggests that the UK construction industry is well aware of the abolition of the “contracts in writing” rule in the new Act and the industry perception is that it is good for their business. The survey revealed that the amended rule in the new Act would significantly increase number of adjudications, number of hearings before the adjudicator, assessment of witness evidence, costs of the adjudication process, and timescale of an adjudication process. The three most important challenges to the adjudication process with the amended rule in the new Act include: assessment of wholly oral or partly oral contract terms that were agreed, availability of evidence, and availability of information. There are no significant statistical variations between the responses of the SMEs and large organisations.

The paper concludes that the new Act will have significant impact on the UK adjudication. Therefore, the UK industry urgently needs to adopt and become accustomed to quite significant changes in the new Act. It is advised that an industry‐wide awareness‐raising programme on the new Act needs to be developed and deployed.

The paper improves understanding and awareness of the construction industry professionals regarding the likely implications of the abolition of the “contracts in writing” rule in the new Act on the adjudication.

The purpose of this paper is to evaluate the effectiveness of the statutory adjudication legislation in Western Australia against its stated aims.

The four objectives of the Western Australia Construction Contracts Act 2004 were identified. For each objective a number of criteria has been devised. In total, 22 registered adjudicators were interviewed, representing 28 per cent of all adjudicators in Western Australia. The interviewees were divided into two groups, one with legal background (being both lawyer and adjudicator), the other without (construction professionals). They were asked to evaluate the criteria against a five-point Likert scale in addition to open ended comments. Mann-Whitney U tests were used to examine whether there were significant differences between the two groups. Annual reports of Building Commissioner, database of the WA State Administrative Tribunal and some law cases were also referred to.

It is found that the West Coast Model is fair to both parties, the adjudications are generally completed speedily according to the prescribed timeframe, and they have been conducted in various levels of formalities. Adjudications are very cost effective for larger claims. However, they are not so for smaller claims. The increasing uptake rate shows that adjudication is getting more popular, while the low appeal rate shows that decisions on dismissal are fair.

The adjudicators’ opinions are only part of the overall picture and that more research on this topic needs to be done.

There have been two distinct legislative models in Australia, commonly known as East Coast Model and West Coast Model. A number of authors have called for a national dual model incorporating both current models. However, it might be too early to discuss the national dual model when there have been very few evaluations on the West Coast Model and among the few there have been problems in the research design. This paper seeks to bridge the gap by evaluating the West Coast Model against its stated aims.

The nature, status and role of bid cutting in construction bidding are examined from economic, legal, ethical and management perspectives. Some possible means of countering its negative effects are considered including prohibition by legislation, the use of bid depositories, earlier formalization of subcontracts, withdrawal of subcontract prices and through alternative procurement methods. An empirical survey of bid cutting practice is described involving a sample of main contractors (MCs) and subcontractors (SCs) in Southeast Queensland. The practice of bid cutting was found to be widespread. All the MCs considered the practice to be ethical and all the SCs considered it to be unethical. In some cases, MCs awarded contracts elsewhere, even after telling SCs they had the job. Most of the SCs had tried individually to counteract bid cutting but were unable to continue this while others were complying with MC bid cutting attempts. SC bid withdrawals are very rare and litigation is never applied by either MCs or SCs. Mainly as a result of incomplete project documentation, MCs disliked the idea of making the subcontract binding at the time of main contract bid subject to its success, although it was generally recognized that it would reduce bid cutting by the MC‐a view that was also shared by half the SCs. Most respondents thought the construction management procurement option might reduce bid cutting but none had sufficient direct experience to be sure.

This study aims to provide a foundation for the development of subcontracts that suit takt production in construction.

This is a non-empiric conceptual study, which integrates takt production and general construction literature into new proposals for subcontract clauses suitable for takt production in construction. This study uses literature reviews, from which proposals regarding takt production viable subcontract clauses are conducted via logical reasoning.

A total of 13 proposals for takt production applicable subcontracts are provided in this study. The proposals emphasize detailed and collaborative planning, suitable payment methods and flexibility for takt plan modification.

Previous takt literature has not properly addressed the development of subcontracts for takt production, despite regular attempts to use subcontracting in takt production. This study aims to aid main contractors to create fair and suitable subcontracts, so that adhering to takt schedules could be more viable in practice. This study also acts as a foundation for further empirical studies regarding the subject.