Collusion in the Dutch construction industry: An industrial organization perspective

Several investigations by parliament, cabinet, justice and antitrust authorities have shown a widespread use of cartels and structural bid rigging within the Dutch construction industry. The reputation of the Dutch construction industry has been dented with both the general public and clients. As a response, the Netherlands' parliamentary inquiry Committee on Construction Fraud adopted the guiding principle of 'competition is good' and urged the restoration of the proper functioning of the market. The proposed default approach to public sector procurement is design-bid-build with public tendering and selection of the lowest price. A concise overview of the investigations is provided, relating the collusions and their persistence to emerging insights from the field of industrial organization theory into underlying factors and causes. A tougher public sector procurement policy and the continued reliance on lowest bid prices may not contribute to the reform of the Dutch construction industry as intended. One-dimensional, price-oriented competition only provides a static, project-based efficiency. However, it neither addresses a number of organizational issues nor resolves the underlying pressures leading to collusion. An alternative approach allowing for a balance of competition and collaboration with a wider number of selection criteria variables would create a more dynamic, iterative competitive process over a longer timeframe and would develop an innovative, efficient and profitable industry. Although the inquiry committee acknowledges these new methods of procurement, it is expected that the overriding ambition to restore proper market function (through increased competition) will steer towards the more traditional procurement approaches.     

Dutch contracting fraud and governance issues

Building companies in the Netherlands used a clandestine sharing of the markets. These illegal actions have resulted in increased construction prices in the tender phase as well as false invoicing and fiscal statements. The irregular practices were precipitated by the structure of the building industry, inadequate governance policies and enforcement. Recommendations are made for government policy to promote better institutional frameworks within public-sector client organizations and for creative competition based on wider selection criteria.     

Collusion in the Dutch construction industry: An industrial organization perspective

Several investigations by parliament, cabinet, justice and antitrust authorities have shown a widespread use of cartels and structural bid rigging within the Dutch construction industry. The reputation of the Dutch construction industry has been dented with both the general public and clients. As a response, the Netherlands' parliamentary inquiry Committee on Construction Fraud adopted the guiding principle of ‘competition is good’ and urged the restoration of the proper functioning of the market. The proposed default approach to public sector procurement is design–bid–build with public tendering and selection of the lowest price. A concise overview of the investigations is provided, relating the collusions and their persistence to emerging insights from the field of industrial organization theory into underlying factors and causes. A tougher public sector procurement policy and the continued reliance on lowest bid prices may not contribute to the reform of the Dutch construction industry as intended. One-dimensional, price-oriented competition only provides a static, project-based efficiency. However, it neither addresses a number of organizational issues nor resolves the underlying pressures leading to collusion. An alternative approach allowing for a balance of competition and collaboration with a wider number of selection criteria variables would create a more dynamic, iterative competitive process over a longer timeframe and would develop an innovative, efficient and profitable industry. Although the inquiry committee acknowledges these new methods of procurement, it is expected that the overriding ambition to restore proper market function (through increased competition) will steer towards the more traditional procurement approaches.     

Simulation and analysis of airborne cross-contamination routes due to the operation of building drainage and vent systems

Recent concerns about the role of the drainage and vent systems installed in high-rise and other buildings in the possible spread of airborne contamination have highlighted the need for simulations capable of predicting system response when subject to multiple and random events. Such simulations would allow designers to predict the possible contamination routes established as a result of failures of the system, e.g. trap seal loss and/or the influence of dried-out traps. In addition, the simulations proposed would provide diagnostic tools in the event of cross-contamination. Mathematical solutions are used to simulate the system unsteady water and entrained airflows, and the application of these simulations to predict likely contamination routes. The AIRNET simulation is employed to represent the unsteady air and water down-flow conditions in the network, the associated propagation of air pressure transients and trap response. The simulation can provide a design and standards development tool as well as a forensic and diagnostic tool for the investigation of suspected cross-contamination. The simulations confirm that cross-contamination routes result from normal operation and random failure conditions, including system surcharge and trap depletion due to, for example, poor maintenance. It suggests that simulation predictions have an important role in ascertaining potential hazards, as well as a forensic role.     

Developments in tubular daylight guidance systems

Tubular daylight guidance systems are linear devices that channel daylight into the core of a building. They consist of a light transport section with, at the outer end, some device for capturing natural light and, at the inner end, a means of distributing the light within the interior. This technology is examined in terms of performance, cost, design issues and governance (codes) for the different generic types of systems. Gaps in the knowledge on a range of issues, particularly operational human factors, are identified as key determinants delaying the wider implementation of this technology.     

Environmental performance assessment in China and Hong Kong

Environmental Management System (EMS) has recently been advocated for almost all economic sectors. However, the implementation of EMS is problematic for the construction industry. The greatest obstacle is the lack of objective performance evaluation criteria. To overcome this, Environmental Performance Assessment (EPA) has been introduced, to provide assessments in terms of management and operational systems. This paper compares the status of EPA implementation in China and Hong Kong. By means of a questionnaire survey, the difficulties in implementing EPA are highlighted, the major ones being 'Lack of technological support, such as training, staff and expertise' and 'Lack of commitment from senior staff' in Hong Kong and Mainland China, respectively. Furthermore, 'Lack of legal enforcement' is found more profound in Mainland China than in Hong Kong, indicated by a low correlation coefficient between the rankings of these factors in Hong Kong and China. Meanwhile, 'Promoting EPA as a legal requirements' and 'Inclusion of EPA in the tendering requirements' are found to be the best tools for encouraging implementation of EPA. Although the difficulties in implementing EPA are different in the two regions, the motivations for EPA are similar, with a high correlation coefficient.     

Construction business system in China: an institutional transformation perspective

During the transformational period from a planned economic system to a market-oriented one, China's construction business system is in an intermediate stage of development. The developing business system has played an increasingly important part in regulating the relations between various actors in the building sector, but the disordered situation in the construction market has fully revealed the shortcomings of the system. Using international experience and practice for reference, China is making efforts to promote the construction business system with Chinese characteristics. The institutional change involves reforms in legislation, property rights, price mechanism and the investment system. The crucial issue lies in deregulation, but this is difficult to realize for a government-led reform. Only if government's control and intervention are decreased enough can the construction market and related professional bodies play their proper roles so that the development platform of China's construction industry can be gradually perfected.     

Service life planning and performance requirements

Service life planning comprises a model for the determination of a reasonable expected service life for buildings and components, and it establishes a routine for the assessment of design alternatives. A design option is considered reasonable when it meets or exceeds performance requirements over time that have been drawn up specifically for the specific project. Due to this assessment reference, there is a very evident link to the concept of performance-based building. Any stakeholder involved in the value chain or in the design process of the building, as well as regulators and building users, can express performance requirements. Identified requirements, both in relevance and in quality, will vary with the stakeholder and his/her perspective of interest. As building sector manufacturers develop most products with reference to standards rather than with reference to specific requirements, there is no direct link from user requirements to the product design. Instead, the building designer has the responsibility to ensure performance requirements are met by the performance of products integrated into the design. As these design decisions also have to be made at the material and component level, a performance-based building would benefit from an established rationale that enables the communication of performance requirements across the relevant system levels in the relevant design processes. A path for the connection of the established concepts of service life planning and performance-based building is presented. The aim is to identify key elements that need to be developed for the successful linkage of performance-based building with service life planning.     

工程招投标串通行为研究及其防治建议

文章结合国内外关于串通招投标的研究成果并根据工作中遇到的串通招投标现象,总结了串通招投标的类型及表现形式,并对我国建筑业发展情况进行了统计,分析了串通招投标的原因。文章从提高招投标参与者整体素质、加大执法力度和调整建筑市场结构3个方面,提出了防治串通招投标的几点建议。     

基于前景理论的建筑行业合谋监管博弈分析

建筑行业已经成为我国政企合谋与腐败的重灾区之一。为研究建筑行业合谋行为的防范机制,基于前景理论构建国家、行政主管部门及建筑企业的三方收益感知矩阵,从而进行合谋监管的博弈分析,探寻合谋的条件及影响因素,并对影响因素进行敏感性分析。结果表明若不考虑心理因素尤其是损失规避的影响会对合谋监管策略产生较大偏差。合谋监管应从两方面进行:一是保证最佳的打击合谋事件的力度;二是通过制度设计降低合谋方策略均衡的监管概率,其具体的影响参数包括名誉损失率、惩罚与收益的比值、成本与收益之比以及合谋方心理因素。针对识别出的关键变量,对抑制合谋行为提出相关的对策建议。     

经评审的最低价中标制度下的串通投标及其反制策略——投标人与评委之间的串通投标

在经评审的最低价中标制度下,针对新出现的投标人与评委之间的串通投标现象,分析了其产生的基础条件和赖以生存的制度空间,通过实践首次针对性地提出了扩大评标委员会、采用多因素评审、流水评审、密封卷评审等综合反制策略。     

Developing a multicriteria approach for the measurement of sustainable performance

In Australia, cost-benefit analysis (CBA) is one of the conventional tools used widely by the public and the private sectors in the appraisal of projects. It measures and compares the total costs and benefits of projects that are competing for scarce resources in monetary terms. Growing concerns that the values of environmental goods and services are often ignored or underestimated in the CBA approach have led to the overuse and depletion of environmental assets. A model of a sustainability index as an evaluation tool that combines economic, social and environmental criteria into an indexing algorithm is presented and described. The sustainability index uses monetary and non-monetary approaches to rank projects and facilities on their contribution to sustainability. This process enables the principle of trade-off to occur in the decision-making process and thereby allows environmental values to be considered when selecting a development option. This makes it possible to optimize financial return, maximize resource consumption and minimize detrimental effects to the natural and man-made world. A case study is used to demonstrate the model.     

工程投标中串标行为的信号博弈分析

自我国从2000年开始执行《中华人民共和国招标投标法》以来,建筑市场的竞争逐步走向规范化、法制化、有序化的轨道。然而,近期在建筑市场竞争中不断涌现的串标、围标、合谋等违法行为,已严重干扰正常的市场竞争秩序。运用信号博弈理论,建立不完全信息动态博弈模型,通过求解模型,找出模型的混同均衡解和分离均衡解,得到影响串标者行为的因素为:招标人对串标者的处罚费及招标人检查串标的成本,而与投标人的串标成本无关。提出治理串标行为的经济和法律措施,如合理设置检查成本与处罚费的比例、加大处罚费及加强对报高价投标人的检查等措施,为我国建筑市场的管理者和监督者治理串标行为、净化建筑市场及创造和谐竞争环境提供有益参考。     

Degree-days for the exergy analysis of buildings

This paper presents the application of degree-days utilized for the exergy analysis of buildings. The climate is observed as a basis for the exergy analysis of the energy usage of buildings. The definitions and functions of the outdoor temperature distribution density and its cumulative distribution frequency are introduced in the analysis. There are several relative exergy indicators for local climate conditions that are considered in the exergy analysis of the energy usage of buildings. The setting of these parameters allows the thermodynamic evaluation of engineering heating practices in separate locations.     

A FRAMEWORK FOR INTEGRATING BUSINESS AND INFORMATION TECHNOLOGY IN CONSTRUCTION

Previous experience has shown that ad-hoc investments in IT have caused a wide spread of isolated applications with no communication strings. Benefits have become transparent to management as new sets of managerial problems have risen as a result of the implementation of such systems. It is therefore apparent that there is a need for structured methods whereby well planned and managed IT investments can be delivered. This paper proposes a structured methodology to integrate business with Information Systems/Information Technology strategies. Factors such as mission, objectives, critical success factors, information technology, information systems are defined and assessed in an overall framework. The amalgamation of business objectives and IS/IT strategies is highlighted as being vital prerequisite for successful IT investments. Finally, the paper explains a case study which has been conducted on a small private practice to advise on their future strategic information systems using the proposed methodology.     

工程招投标中的博弈模型分析

工程的招投标过程充满了各类型的博弈。本文从工程采取招投标的博弈机理、权力寻租中监督者和寻租人之间的博弈、投标人联合串标的博弈开始,分析了在工程招投标中存在的一些实际问题,并根据博弈结果提出相应的建议。     

过度竞争还是合谋--从陪标、围标谈起

本文使用博弈论对建设工程市场中的合谋行为和"过度竞争"进行了分析,指出目前建设工程市场中的一些违规违法和低质量现象的根本原因在于制度缺陷所造成的合谋,并提出了制止合谋的措施.     

施工企业BIM应用技术路线分析

施工企业目前正在进行的BIM应用和20年前的CAD应用相比面临两个显著不同的挑战,一是需要使用和可以选择的BIM软件种类和数量是当时的数倍,二是CAD主要考虑图形共享,而BIM对不同软件之间的数据共享要求大大提高,因此选择合适的技术路线就成了施工企业BIM应用投入产出效益高低甚至成败的关键。在介绍BIM技术路线选择的方法、流程、技术影响因素和非技术影响因素的基础上,通过对几种可能技术路线的分析,提出了施工企业BIM技术路线在BIM应用不同成熟阶段的发展走向。     

The prospects for a production management body of knowledge in business schools: response to Koskela (2017) “Why is management research irrelevant?”

This article is a response to Lauri Koskela’s recent piece in Construction Management and Economics (“Why is management research irrelevant?” 35(1–2): 4–23) which reflects on the relationship between academic research and management practice in business schools. In particular, Koskela asks why production management research and teaching has disappeared from the business school agenda and why management research has failed to produce a consistent body of knowledge that is of use to management practice. In this article, I try to provide some alternative perspectives on the present and past contexts of management theory and production research. I argue that production research, if not teaching, is alive and well and the site of theory generation, problem-focused research and innovation. I also question the veracity and wisdom of a creating “body of knowledge” in relation to management research and practice-even if it were possible, which I believe it is not. My assessment of the state of research in business schools, at least in the U.K. and the U.S. and notwithstanding a lack of consensus over how to approach management research, is that it is eclectic and vibrant and of much more use to practicing managers in that state.