Analysis Of Problematic Trends In Project Delivery In Australia

The Role of Construction Industry in the Australian Economy

Construction is an industry which has been diverse in many forms by linking it heavily with the interconnections with the entire economy of a given nation. In, many cases, the indicators of the Australia Economy can be solely derived from the industry of construction. This document has focused on Australia which has impacted on the industry of construction by the events trending globally (Economics-and-Statistics-Administration, 2010). The industry of construction in many cases has been linked with a course that is taken by the economy and much more on the society at small or in large scales. It has been noted and realized that almost everyone in Australia in the modern mainstream society has maintained a very close bond with the built environment. Australians have been spending over 90% of their time indoors (ASGBC, 2008).

When change is brought in a given country, the economy of that specific country will be shaped, the society as well as the construction. For a nation to be successful, it will be important for organizations to get involved with the industries of constructions in staying abreast with the state of the current affairs which will be done on both local and globally in developing the set strategic plans (Cooke, 2012). In order for one to have a good display and portray one will need to have accurate information with regards to the current state of affairs and thus helping one in knowing or understanding the likely future impacts (Nonaka, 2016). The moment one understands the current situation then, the critical part of the strategic planning process will involve developing the visions of the future and thus attempt to predict and understand the conditions expected in the future which may affect the industry in specific.

This research is attempting to communicate the broad or wide visions for future trends which may face the industry of construction. Nevertheless, any attempt which may be used in making predictions about the future will be inherently assumed to certain uncertainty levels. When on acknowledges such uncertainty, it may be possible for one developing the important findings by working with an aim of understanding the potential future.

It has been recognized that for one to develop a working understanding in the future it will be important for an organization success to be associated with the industry of construction. Even in cases where it is said to be a significant aspect of strategic planning, it might be difficult for one accurately constructing visions that will be used in the future in facing the industry. Fragmentation and diversification have been known to exist in the industry of construction. This has made the organization to feel and assess construction to be a very difficult business environment (Kahsem, 2017). Organizations which perform constructions must always be mindful for catering on the future while they are still. The current real conditions of the market at many times, they may make it difficult for the organizations in becoming successful when predicting and preparing for the future.

Importance of Staying Abreast of Industry Trends

The construction institutions education has that task for understanding the construction industry future. Construction institutions must be able to understand the possible future for them to be able to train effectively and educate the professionals in the future who will be entering the industry. The higher education institutions must be developing the catalogs of their courses in advanced before they start on implementation (laris, 2002). When there is a likelihood that there is no staying on the abreast of future likelihood, the educators of construction may find at the end that their programs are not meeting the student needs.

Construction in Australia has played a very significant role in its economy and thus issues such as the consideration of issues of efficiency are very fundamental. The great news is that the construction industries in Australia have been seen to be all aware of these needs. A good example of such is the Rescon Builders who has been known for long for specializing in the granny flats in New South Wales. A few weeks ago, Rescon Builders were awarded the 2017 Excellence Award in Housing for about 100000 to 150000 Dollars granny flat category. GenieBelt has been extremely happy and much more very proud because of that, this has been heightened by the concept that it is one of the tools that they use during the process of construction. On the basis of the achievement, in this concept and case study, there was a need for taking a closer look on the construction industries in Australia by analyzing the present and the future impacts of this sector or industry in details (Helsin, 2012).

The industry of construction in Australia has been considered to be mature and thus helping in developing the economy of Australia as whole. The research that was reported and published by ABS which is Australia Bureau of Statistics in the year 2017 recorded that the construction sector is rated second largest in terms of industry ranking in the economy of Australia having a yearly economic income estimated to be A$130 billion. This has made construction to be highly competitive in the economy of Australia. Competition level has rapidly continued to grow as the global contractors over the few years have been able to enter the market in Australia. This has been driven by an increasingly global perspective to the EPC contractor market (ABS, 2017).

The industry of construction being highly competitive has resulted to many companies and businesses operating in such sectors to highly respected globally, given their expertise technically and they knowledge they have in developing with respects to the project delivery of large constructions. This is made across all the sectors of mining, oil & gas, energy as well as the infrastructure in public sectors. Just like it is in other sectors globally the complexity as well as scale has continued to grow at the same time there is technological improvements which has greatly increased the impacts with regards to the project delivery.

Future Trends in the Construction Industry

It is not a secret that, most of the majority of work done through or by construction in the world has been facing a lot of productivity issues. Interestingly enough, most of the construction done in Australia has appeared to be one of the fewer markets available where efficiency is not termed to be the number one problem. In a husk, there are some relevant reasons to as why construction in Australia is seemed to be always one step ahead when compared with the rest of the other markets in the West.

The following are some of the reasons to as why they are always one step ahead when compared to the Western Markets. This has been highlighted in figure 1 above and explained in details here below.

Bureaucracy has been indicated to be one of the biggest problems being faced by each and every industry and market. Nevertheless, Australia as a nation has become so smart about such an issue in the industry and in the existing markets, in that it has been able to able to manage such by optimizing the whole process in the relation to delivering the projects of construction on time (Cocana, 2013). For example, for periods with shorter approvals in building permits it has helped a lot when it comes to speeding up the projects. This has been achieved by the cutback of the certainty in time-consuming and the possible regulatory stages.

The rapid growth of technology in many sectors in Australia has affected the economy in many ways positively and negatively. Each and everyday technology are advancing into levels that were never anticipated and thus making the technology used yesterday to be obsolete to the people who found it already replaced by the trending technology. Technology innovation has affected people in many ways as the sector engineering is working hand in hand in making the machines to be applied during construction. Technologies which are new have contributed greatly to the increment of productivity (Cocana, 2012). This has been explained with regards to updates on both the software and the hardware respectively.

 In consideration of Rescon Builder case, they have developed software’s which have been acting as representative of the example given in the investments in the real-time project management software which has been used in allowing for a better connection between the construction industry and the associated sites as well as the office and thus making it more effective when managing data. In consideration to the same with regards to hardware (equipment’s), they have been the use of robotics systems such as the use of block-laying robots and exoskeletons and much more having drones which may significantly be used in optimizing the whole process.

Challenges in the Construction Industry

On the basis of the report of McKinsey, construction in Australia has appeared to have done a very great job in making the unions come together (Timo, 2015). They have made this a success by offering the provision of very high-level training regularly as well as giving better salaries when compared to other countries.  This idea has piled up and thus helping them to manage to build a profile which is appealing and much more attracting a young force which skillful.

The middle management has played a very vital role in construction. There is a lot of efforts that have been made, this has made it be extra careful on the issues of the workforce by the government of Australia investing in construction a lot and thus making sure that the safety regulations are always respected in very project construction in process or anticipated (Timothy, 2014). All the talented and most experienced employees will be able to take over positions where they will be needed by the management as they possess the management skills as well as the technical skills.

A lot of indication when one considers this Rescon Builders when it comes for one o show what team which is dedicated can achieve in the industry of construction if they happen to work smart and much more effective. Granny flats are one of the big things in Australia and for one becoming a specialist in such specialization and expertise then it is surely out of the results of hard work and much more solid planning.

Rescon Builders getting the award of Excellence In Housing became the best proof that they achieved and in ten right directions. They have an experience of more than 20 years in the industry of construction and building by approximately achieving about over 200 granny flats per year thus making the number to speak for itself.  Rescon may need to have a trustful tool which is digital that would help in facilitating the communication between the site used for construction and the people who work in that specific office. After considerations of all that, GenieBelt termed to be the best and excellent match. At the moment, Rescon has remained the top granny flat builder in Australia specifically in Sydney and thus continuing to optimize the projects progress.

The company has been known for holding some meetings weekly where they discussed some of the potential issues that were emerging on the on-site. This process was to take a lot of time and thus hindering a lot of productivity. Timothy Cocaro who is the CEO of Rescon came with a suggestion that he will need to change that and thus help in achieving the set goals. Using the following concept, the following has been used in managing the way construction software has been trending in Rescon during their work (Rescon, 2018). GenieBelt, in particular, has managed to help him and the associated team during the process of construction.

1.    Improved communication.

The Role of Education and Training in Construction Industry

It has suddenly become so simple for Timothy and anyone working at Rescon to be staying up to date with all the latest changes in the projects and thus taking the relevant actions before they lose the valuable time and much more the resources.

1. 2.    Real-time planning and management:

When the updates are done on real-time then there is an expectation of success. In construction, there is always no time for one losing and, in this sense, GenieBelt has helped Timothy in acquiring better controls over the projects which are both in terms of the planning done as well as well as the management.

1.    Helped projects run on time and on a budget:

This may go without necessarily saying that the first two factors always play a vital role in meeting the set deadlines successfully without having to run over the preset budget decided by the entire board during the planning phase. This can be explained to be a remarkable boost in productivity and how efficient it is in other terms.           

1.  Vital to implementing systematic safety and quality checks

Lastly but not least, is that according to Timothy Cocaro, there is implementation and development of safety tools which are systematic and also there are quality checks. There is an existence of the vast amount of data and thus Timothy and the team associated have run the detailed safety and quality checks and they have worked well and much more confident in that the strictest established criteria are satisfied.

GenieBelt has stated that it is so vital for any construction company in the in the modern era to have any effective communication and the response system for all the stakeholders involved. GenieBelt is a project management software where the construction team has been used when scheduling and generation of reports. There was a continuation of the above where there are some major benefits that use the GenieBelt software’s had for the specific job. Some of the impacts

1.    It is very easy for one to use such an interface. all the available interfaces across all the major platforms such as the Android, iOS, and Windows are easy to use with this interface of GenieBelt. In this way, the traders, supervisors, and contractors, as well as the office team, can get real-time updates with concerns to the project status.
2.    This software has immensely contributed to the reduction of the timeline of the project to an average of about 100 days. The section of drill down has been used in filtering activities as per the assigned employees, the specific dates, the name of the tasks or the projects.
3.    Individual task sheet is always generated for all the trades and sending out the weekly book trades. The trades must always know what to expect in the coming two weeks so they plan their schedules and doing a visit in advance.
4.    Individual Task sheet is generated for all trades and sent out weekly to book trades. The trades know what to expect in coming two weeks so they plan their schedules andvisits in

advance.

1.    Each project schedule is tailored as per its specific requirements

In this concept, the understanding is on the basis of the kinds of cladding or roofing as well as flooring which are meant to be applied in the project. Trades and The Rescon Staff has been using this in uploading pictures in the job site. This has provided much visibility for the entire project team if there are any issues with the quality of the activities in the construction. Beats are basically the updates or changes or comments as well as the uploads made by someone in the project team.

1.    It has been also applied in raising concerns when a task is reported to have a problem which is bringing springs which are concerned with the parties concerned in the action.
2.    The company has invoice clients which are on the basis on the stage of the project respectively. GenieBelt has been used in a manner that they can quickly access what they have done today which may involve the invoices which may need to be raised.
3.    The deliveries in construction are always planned on the dependence on the stage of the anticipated project and thus there must be insurance that the trades received will require material on site prior to them visiting the site.
4.    There has been adoption increment of GenieBelt in RESCON trades which has greatly contributed to bringing the bring the construction team on the same page and thus streamlining the activities.

As seen from above, when a company uses real-time project management software there can be some associated profits for both the company as well as the construction projects. In this case, one has to know where to specifically look. In order for one to manage this, one should be aware of the several and various problems associated with construction making it struggle at the moment which may not be only affecting globally but also locally.

Efficiency in the Construction Industry in Australia

According to the report which completed and compiled by CSIRO, there are some trends through which they have impacted the future of the Australia Construction industry. The owners of the business, it is very important for one staying ahead of the game, in all business aspects. The following are some of the trends of construction which have helped in shaping the Australian employment, industries, and the 2017 economies, particularly within the building industry.

The 13th annual dermographia international housing survey in 2017 demand that the Australia Housing market is severely unaffordable. The research from the case study was rated to be second in Sydney as it has the unaffordable housing market in the globe under Hong Kong, meanwhile, in Melbourne it was rated number six (Thomas, 2012). The average size of each household will continue to decline, while the exact population has been increasing thus forcing the market to look so cheaper in terms of the housing alternatives. Inflation has greatly continued to affect the industry of construction, thus heightening the costs that surround the new developments surrounding new developments and maintenance of infrastructure.

The workforce which is aging has been unable to keep up with the physical demands of the jobs onsite within the industry of construction. Tradespeople who are mature may demand their abilities but the ages may come with other implications of health. Shortages in skills in the Australia labor markets has been shown within the new generations of apprentices (Mcdermott, 2009). There are few men and gentlemen who may see the construction jobs to be desirable, which may lead to skill shortages and thus leading to high wages.

There is extreme weather which included the heat waves and the storms which may cause some significant impacts on the construction industry. The stated impacts are expected increase thus causing setbacks on the projects (Riddell, 2016). The averages of the temperature have predicted to increase in all cases all year round, the construction industry is likely to almost suffer.

The US-based project management institute has found that Australia is rated (Hook, 2017) to be below the average of 108 million dollars which is wasted for every $1 billion which is spent on the infrastructure. The report on the Public Infrastructure Financing which is an international Perspective which suggested improving the suggestions made to the finance public infrastructure, incentives management, and risks examination during the contract negotiations. The growing deficit has called for better investment planning and resource allocation.

There are emerging Asian Economies, along with the growth of the population and the rapid urbanization thus creating an unprecedented need for the speed in construction (Kent, 2017). Asia has developed the acceleration which has prefabrication of systems in keeping up with the infrastructures demands (Leeds, 2016). Australia has been pushing towards what has been towards the most cost-effective developmental solutions such as cheap imports of buildings with prefabricated and the infrastructure components in Asia. 

The construction industry in Australia is always subjected to the rules, regulations and more the extensive laws of the country. This may include things like the laws of payments with regards to state of Australia and all territories which offers provision of expedited adjudication processes for the interim resolution of the disputes in payment under the contracts of construction. In Australia there is the West Coast model legislation which applies in the Western and Northern Territory which are known to allow adjudication claiming them to be made up and down the chain of contracts in practice (ADB, 2017). However, this process of adjudication has tended to be applied by the contractors and subcontractors in enforcing the progress of the payment which is has been made with respect to work performed under the contract of construction and thus able to maintain the flow of cash in the contract chain.

In Australia, government may be state or federal have to acknowledge the need for improving the payment security for the contractors & subcontractors of EPC. There has been identification of reviews and so many inquiries over the past years with regards to the security of payment terming it as an issue in the construction industry in Australia. Consistency lacking in the payment security laws in the jurisdictions of Australia has been identified to be an issue which is ongoing. The recommendation which will be key in this concept is making security payment laws to be nationally consistent in what is usually known as East Coast Model, this is modeled on the security of New South Wales for legislation of payment. Using the concept of the report, the federal government of Australia has intention of consulting with the industry in considering the recommendations of the reports by explaining on ways that can be used in improving the protections of the industry of construction (herbertsmithfreehills.com, 2018).

The national court has remained to be very popular mechanism in solving the disputes of construction. Nevertheless, the global arbitration has become an increasingly form which is common in the final solving of the projects construction which are large in Australia where the global contractors have played major roles in delivering the projects. The developers and contractors in Australia who operates outside Australia have increased and thus turning the global arbitration in to practice and thus making Australia construction industry well known and accepted.

Conclusion

This case study has explained some of the problematic issues of future trends in the construction industry. This has been well explained in the in the case of Rescon Builder. This has shown in Australia that the construction industry has impacted the economy in so many ways such which may have some fatal impacts on the society as a whole. Technology has been the biggest improvement and innovation made by Australia Construction industries thus leading to quality building with a lot of efficiencies in terms of cost and time. A company managing to build over 200 Granny flats that may be termed to be a milestone to achieve and thus leading to make them the best players in the economy. Trends have existed in so many ways ranging from weather to unconditional areas as explained above.

References

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